Orthopedic Industry News: Imaging and Device Slowdown; Physician Prescription Info Law Nixed

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Written by Scott Becker
Friday, 18 January 2008
Changes in the Imaging and Medical Device Industry. The Wall Street Journal recently noted that each of Phillips, Siemens and General Electric is reporting reduced sales on items such as CT and MRI machines. This slowdown is due in part to reduced reimbursement from the government for non-hospital-site imaging. There is some expectation that this slowdown will last for a long time. Further, there is increased pricing pressure on the private and commercial payor sides. In reviewing this situation, the Wall Street Journal has reported that Phillips plans to change its business strategy to more fully attempt to grow its international business as opposed to staying as highly focused in the United States for CT and imaging business development. GE and Siemens have been less committal about potential changes in strategy. Physician Information Law Struck Down. A New Hampshire law intended to prevent medical device companies from receiving information about physicians' prescribing practices has been struck down. Briefly stated, certain information firms develop and sell data that shows the prescribing habits of physicians regarding pharmaceuticals and medical devices. This information is often bought by pharmaceutical companies and medical device companies so they can plan the targeting of their marketing. Due to invasion of privacy concerns and due to other concerns that this may allow overly aggressive targeting of marketing efforts, certain states have enacted laws that prohibit the sale of this type of information. These laws are being struck down on first amendment and other Constitutional grounds. A recent law of such type was struck down in both Maine and New Hampshire.