- High priority investment areas for hospital purchasing managers include 3D mammography, surgical robots and transcatheter aortic valve replacement hybrid cath labs, according to a recent UBS survey.
- The investment bank estimates stable growth of 3.6% in hospital capital budgets based on data collected from 100 purchasing managers surveyed. UBS analysts suggest the purchasing environment is a benefit for capital equipment companies such as Varian Medical Systems, Baxter, Intuitive Surgical, Becton Dickinson, Hologic and Hill-Rom Holdings.
- The survey found Baxter still maintains 40% of the infusion pump market, with BD currently commanding 29% , the second biggest share. Some 25% of purchasing managers surveyed said they intend to switch pump manufacturers in the upcoming year, but the two market leaders stand to benefit the most, according to UBS.
Not all is rosy for medtech companies, according to UBS. New purchases of equipment and advanced technology are among the first areas hospitals managers would cut back on if the sector hits a downturn.
"Radiology, rehab, oncology, general surgery, and lab also made the list as some of the first areas on the chopping block," the UBS research note said.
Among hospital managers citing robotic surgery as a near-term investment priority for 2019, Intuitive Surgical's da Vinci system appears to be a frontrunner in terms of market share. About one-third of those surveyed said their hospital already owns a da Vinci surgical system and 16% more said they are planning to buy one in the next year.
"Some of the responses were about increasing the hospital real estate for da Vinci systems, such as converting more operating rooms to robotic and expanding to sister hospitals and new wings," according to the UBS note.
One headwind for robotic surgery is rising supply costs, with the area being cited as the having the fastest rising costs by hospital purchasers.
"In general, we think areas where supply costs are rising are more at risk of pushback from hospital customers," UBS said.