The ongoing freeze in hospital capital expenditures could be thawing out, according to a survey of hospital administrators by Leerink Swann.
The poll of 57 administrators indicates that capital expenditure budget declines “may be stabilizing,” according to the report, which forecasts a roughly 13 percent drop for 2009.
“And while a 2010 budget trend is still difficult to discern, even a stable operating environment would be incrementally more positive for companies with capital-related products,” according to the report.
The administrators also reported expectations that the number of procedures is expected to slide over the next 12 months, especially for general surgical and orthopedic procedures.
And pressure on high-margin implantable cardioverter defibrillators and orthopedic devices could drive prices down.
“[S]urvey respondents, on average, expect a bit lower negotiated prices for these devices,” according to the report.