Summary
As America faces one of the worst recessions in history, all businesses suffer, including the health care industry. With the steady rise of unemployment, more and more people are losing their jobs, and with it their health insurance. This has a direct impact on medical device companies, as non-emergent surgical procedures and services are put off as long as possible, thus limiting the usage of their products.
Analysis
As a plastic surgeon, no one is effected more during economic downturns. When the money gets tight, the first thing to go are luxuries. Cosmetic surgical procedures are down over 30% nationally, and this has spilled over into the non-surgical procedures (such as Botox and injectable fillers) which up until now, have been recession proof. The interesting thing is that medically necessary services are also effected. Outside of actual medical emergencies, most necessary procedures can be delayed for certain periods of time, and often are. As employees are laid off, reflected in staggering unemployment rates in the country, health insurance and other benefits become scarce. Thus, medical services which were traditionally recession proof, suffer. Elective surgical procedures are put off, and thus things such as knee replacement surgery or surgeries involving other medical devices devices begin declining. This adversely effects the bottom line of this sector of the health care industry, demonstrating that they are truly not recession proof. Other than necessary, low end products such as surgical dressings, intravenous supplies, tubing and syringes, most of the health care sector is susceptible to the current recession.
