CMS Updates View of Medical Devices and Suppliers Market

CMS has published its 2008 overview of how the financial markets view medical device manufacturers and suppliers and finds that the companies included in the review are strong and expect continued revenue growth through the introduction of new technologies. Pressure to maintain and improve those already

Industrywide revenue growth last year was driven by the introduction of several new technologies, such as drug-eluting stents (DES) and cardiac rhythm management (CRM) devices. Similar growth is expected to come from new products within the spinal and heart valve repair sectors. Analysts believe that in the future, percutaneous "through the skin" heart valve repair and replacement and "non-fusion" technologies in the spine market could have an impact that is as positive as that of DES and GRM today. Median net income margins for the medical device manufacturers improved substantially from 2001 through the third quarter of 2008 to 18 percent (from a low of 11 percent in the third quarter of 2,001), while the less volatile supply companies achieved a 13 percent margin through 2003's third quarter.

To read the CMS Market Update, "Medical Devices and Suppliers," go to www.cms.gov/reports/ hcimu/hcimu_12052003.pdf.

For hot links to the documents cited in "Policy Watch," go to www.hfma.org/policywatch.

Learn how to access Federal Register notices free on-line with HFMA's Internet Guide to Federal Resources at www.hfma. org/resource/government_resources/federaLresources.htm. Or call the Government Printing Office at (202) 512-1800 to purchase a hard copy.

Get current healthcare finance news summaries each week via e-mail by subscribing to HFMA Express News, a free member benefit. To subscribe, send your member number, name, and e-mail address to memberservices@hfma.org.

Get timesaving regulatory summaries, in-depth analysis, on-the-job tools, and handy Internet guides in HFMA's on-line Resource Center, www.hfma.org/resource. (Certain on-line resources will require a membership number for access or may be purchased from the Member Service Center.)