More Videos
SPECIAL REPORT
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wednesday's Economic News Crunch Could Tilt Markets
- The Social Media Gaming Threat
- Obama Reiterates Commitment to Boost US-India Ties
- NBA D-League On The Rise
- Japan Export Rebound Eases Fear of New Recession
- Australia Wheat Exporters Face Challenges: GrainCorp
- Stifling Anger at Work Can Kill, Survey Finds
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- 5 Big Bank Stocks Investors Should Consider: Strategists
- Gambling Drunk, Texting to Live And America's On Sale - Your Emails
- Nov. 24: Unusual Volume Leaders
- NBA D-League On The Rise
- Sales of New Homes Forecast to Rise 2%
- Americans Ditch Planes for Trains this Thanksgiving
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Obama Reiterates Commitment to Boost US-India Ties
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Wednesday's Economic News Crunch Could Tilt Markets
- Call Me Crazy: Confessions of a Black Friday Shopper
- Starbucks Eyes China as Next Major Market
- Citi Mortgage Reveals Something the US Treasury Won't
PHARMA'S MARKET VIDEO
RSS FEED
Pharma's Market
Text Size 
 |
CNBC.com Bernie Madoff |
Several hospitals and/or their foundations are among his alleged victims. A loss that can only make a bad situation worse given the financial shape many hospitals find themselves in during this economic and credit crisis.
Mike Weinstein, the medical device guy at JPMorgan, is out with a significant survey today of more than 50 hospital chief financial officers that he and his team did over the past few weeks.They're the people who control the purse strings when it comes to buying stuff from the companies Weinstein covers. So, we're primarily talking about all sorts of parts for people from stents to hips, although Weinstein's research touches on the purchased of everyday hospital supplies as well.
In his research note to clients Weinstein says, "Our field work confirms the mounting anecdotal evidence that hospitals are coming under increasing pressure, leading to cost controls and reduced capital spending...."
Weinstein says half of the bean counters they talked to are looking for the best deal. The analyst says another readout of the survey is that CFOs are more aggressively managing inventories. That means hospitals might be keeping fewer stents on hand, for example, from companies like Johnson & Johnson [JNJ
Loading...
()
] , Boston Scientific [BSX
Loading...
()
] , Abbott Labs [ABT
Loading...
()
] and Medtronic [MDT
Loading...
()
] .
But Weinstein says the biggest capex cuts will likely be in building renovation projects, information technology, beds and other items that have a low return on investment. Overall, the survey indicates that hospital capex in 2009 will be flat compared to this year.
"The headline responses are bleak," Weinstein writes. "Hospital capital spending trends are deteriorating, largely as expected, but the impact and timing here will vary across categories and companies."
It's a situation I blogged about earlier this year when CNBC's parent company GE[GE
Loading...
()
] reported weakness in its healthcare business. Nearly nine months later, it's still playing out and at least according to this JPM survey will linger well into next year.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes