The past year or two was the “first time in my 30 years with this industry [we faced] a decline for primary medical services,” CEO Edward Ludwig said. “Doctor offices went down, hospital visits went down, lab tests went down.”
“We might have lost 100-200 basis points this year, but we can get through that,” Mr. Ludwig said. “The worst of the downturn, at least in terms of hospital supplies is over.” But he warned: “It’s not going to get better rapidly. We’re not going to see a big V, but over the next 12-18 months we’re going to see steady demand.”
Healthcare reform will buoy supplies industry
Mr. Ludwig said the healthcare reform law will buoy the supplies industry, because the new “value-based purchasing” program would force hospitals to become more efficient and that, he asserted, would require more purchases of supplies.
The new law “will set a benchmark of standards for hospitals, and if the hospitals do better against those quality benchmarks — one of which is healthcare associated infections, error rates — then the hospitals will get more money from CMS,” he said. “That’s good for us because the things we sell make hospitals better, labs more efficient. Basically we help the healthcare industry work more efficiently.”
However, Mr. Ludwig still vehemently objected to the reform law’s new fees on suppliers.
See the CNBC report on healthcare reform, including a video clip of the interview.
Read more coverage of the hospital supplies industry:
– 8 Largest Group Purchasing Organizations for Hospitals
– 5 Ways Business Intelligence Will Affect Pricing Negotiations
– Industry Expert: Health Reform Device Fee Would be Good for Device-Makers
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
