Within about a 12-hour period, two healthcare companies have blamed the pullback in hospital spending for worse-than-anticipated financial results.
This morning Cardinal Health issued a cautious outlook "because of a deferral in hospital capital spending...." And Chairman and CEO R. Kerry Clark said he doesn't see the light at the end of the tunnel. He's quoted in the press release as saying, "It is difficult to forecast the exact duration and potential long-term changes in hospital spending patterns...."
But the head of CAH's Clinical and Medical Products business, David Schlotterbeck, got a little more specific. "With the delay in hospital capital spending, we expect softness in our capital equipment sales to continue in the second half of the fiscal year."