Med-Tech Earnings In Brief
This article was originally published in The Gray Sheet
Executive Summary
Zimmer on gainsharing deal: Orthopedic firm concludes contractual agreements, sets June 1 as a starting point in gainsharing deal with HCA, the largest for-profit hospital group in the U.S. "The opportunity to chase several millions of dollars of new business with a less-crowded field of competitors is always welcome, provided real compliance is delivered," Zimmer CEO Ray Elliott said during a second quarter conference call. Zimmer believes there is little downside to the arrangement, but the firm is monitoring the situation, and thus far "we do not have any proof that this construct will move material amounts of business. Failure to do so must result in a return to higher prices and/or less services." Under the deal, HCA will only purchase reconstructive implants from Stryker, Zimmer and J&J/DePuy (1"The Gray Sheet" April 25, 2005, p. 19). "If it works, it is a great opportunity; if not, I'm not concerned," Elliott stated...