Our longtime expert research and diligence collaborator Fletcher Spaght, Inc., a healthcare focused consulting firm, has just published a survey of 100 health system executives. The intent of the study was to gauge medical device purchasing dynamics and other trends from the provider perspective.
The key findings, in a nutshell, are that providers experienced reduced procedure volumes at the end of 2020. Q4:20 volumes, during the second wave of the pandemic, were down 20-25%, but this has created a backlog of patients needing treatment.
Most executives expect a return to normal volumes in the coming two quarters, but it could take well over five months to work through the pent-up demand for care. The greatest backlog was found to be orthopedic procedures followed by general surgery.
Over half of the executives surveyed believe that provider capital expenditures will increase in 2021 with most of the purchase orders being executed starting in Q3 and beyond. A key priority for health systems is that they are seeking financial stability after a year of reductions in patient volume. In order to attract patient volume, about half of the systems are increasing their advertising budgets for patient outreach this year. There is also an expectation of limiting incremental distributors as suppliers and pricing for commodity implantables.
It should come as no surprise that the pandemic has created a reset in the way providers are expecting to deliver care and implement workflow virtually. Digital tools for care delivery are expected to engage patients more as active participants in their care. It also looks like patient visitors and medical device company representatives will continue to use virtual communications post pandemic due to the providers desire to retain infection control measures and the like.
For further details, the Fletcher Spaght materials can be accessed here.
Posted: February 10, 2021
