Hospitals’ Capital Equipment Purchases Growing, Key Vendor Says

The CEO of Covidien said the company’s rising sales show hospital capital equipment purchases are growing again, a sign that hospitals are recovering from the recession, according to a report by Reuters.

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“We feel like it’s beginning to get better,” said Covidien CEO Richard Meelia, speaking at the Reuters Health Summit. “Our product line offers visibility into what’s happening throughout healthcare, so I think it’s a good barometer from that standpoint. We don’t think it’s an aberration.”

“Hospitals eventually have to start replacing that equipment that is getting old,” Mr. Meelia said. Covidien’s products are used throughout the hospital, from ORs to ICUs to cancer centers.

Read the Reuters report on capital equipment.

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