4. The Medical Device Industry Is Not Looking At The Other Side Of The Coin.....
With the Affordable Care Act 30 to 40 million more people will have medical insurance that didn't before. There will be an influx of people using healthcare, healthcare facilities, pharmaceuticals and medical devices that didn't in the past because they didn't have insurance. Couple that with the aging of the baby boomers that will gradually be using more and more healthcare services, pharmaceuticals and devices - all of the healthcare industry is going to get busier and could possibly be overwhelmed. Any company that services this industry will benefit from this influx of patients.
A 2.3 percent levy on medical devices is a small price to pay for the business that will be coming their way. The thinking that this will raise prices on products - in my opinion is wrong as well. With the pool of patients getting bigger - the competition to sell product for those patients will get stiffer. Companies will vie for the extra volume of product to be sold and that will keep pricing in check.
I just think Stryker is being short-sighted on this. They are not looking at the big picture - only thinking about things as they are now and not considering how it will be come 2014 when ACA kicks into full force.