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The Company is a developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders.
I am a Medicare provider of ResMed's line of products and have done so for the past 8 years. Medicare and the other insurers are shrinking the reimbursements to providers of this product (me) as the boomer population increases. Watch for the margins to go down on these products. They have to sell cheaper to companies like mine just to make it profitable for the retailers who supply it to the general public. I am paying less for the same product than I did four or five years ago. This is a trend that is coming for these medical equipment companies like ResMed who supply this stuff to retailers of medical equipment. The government (Medicare/Medicaid) is cutting their reimbursement rates so much, it's scary. They must reduce price or lose business.
Isn't this true for all manufacturers of Sleep Apnea and similiar respiratory products (Phillips Respironics, for example)? If so, then the playing field is level, right? Then the best company in terms of management, product, etc. wins.Or are you saying that there are better investments out there outside of medical devices?Thanks,akakroke
This is scary & hopefully short term. The percent of people who do not sleep enough is at least 25%. ( William Dement, The Promise of Sleep.) Sleeping is where people, among other things, heal. If people get better sleep medical costs will go down. So being an optimist, I am hopeful that free market capitalism will prevail over government intervention & that sleep products will enjoy growth in excess of GDP. Anything else is, well scary.Also, look for RMD do well internationally.
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