While capital spending is slowly returning, hospitals will wait for an increase in patient volumes before purchasing medical technology, says Joanne K. Wuensch, a research analyst at BMO Capital Markets.
“Entering earnings season, people were worried about European austerity budgets and pricing,” Wuensch said. “Exiting the earnings season, what people are worried about more is where have all the patients gone?”
Increased copays and higher deductibles have caused changes in the purchasing pattern cycle of patients and medical facilities. The analyst predicts patients will continue to defer treatment until the end of the year and possibly into the next year, as people await reimbursements or hold off until they’ve met their deductibles.
“The question really is how many of these procedures permanently go away and how much of it creates pent-up demand?” said Wuensch, who believes patient volumes will eventually return, as people can’t put off necessary procedures indefinitely.
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