This report originally appeared in the April 2010 issue of DOTmed Business News

If we're fortunate, the worst of the economic crisis is over. Still, the damage it has caused will be felt by hospitals across the nation for some time.

According to a recent Association of Hospitals report, 9 out of 10 hospitals tightened their belts in the midst of the 2009 fiscal woes, reducing staff and administrative expenses. Various sectors were affected but for the most part, the purchasing of medical disposables, essential for patient care and employee safety, stayed strong. Syringes, exam gloves and surgical masks take priority over other hospital expenses and are naturally one of the budgets that raise the loudest cries of outrage when they're cut.



The main impact a bear market has in this case may be due to a reduction of people choosing elective surgeries as changes in the volume of disposables are directly correlated to the number of patients treated at a hospital.

"Most of the items we use to take care of patients are disposables," says Joe Sheil, director of contracting at Beth Israel Deaconess Medical Center, Mass. "As we treat more patients, we buy more products."

While hospitals continue to be the biggest consumers of disposables, purchasing managers strive to find ways to curb spending where they can -even in disposables. That has proved to be a challenging task since the prices of raw materials and shipping have increased as well, forcing manufacturers to develop and market new products under financial strains.

"Tight budgets are probably the most significant challenges the disposable medical device industry - and the broader health care industry - face today," says Taylor Smith, vice president and general manager of Cardinal Health's gloves division. "There is a lot of product innovation entering the marketplace that might be perceived as having a higher initial product cost. It's our job to get evidence-based information to health care providers and materials managers to help them understand how these types of innovative products can ultimately lead to lower total costs."




According to a report by the Freedonia Group, an international business research company based in Cleveland, Ohio, U.S. demand for disposable medical supplies is projected to reach more than $79 billion in 2013. The predicted growth is credited to the aging baby boomer generation and the implementation of stricter hospital infection prevention standards. Several hospitals are investing in specific disposable products to curb infection rates.

More Industry Reports