Stryker’s (NYSE:SYK) Mako surgical system remains a strong seller, even as hospitals grapple with pandemic-induced cuts to revenue. The orthopedics giant announced the placement of its 1,000th system in September.
Those results stem not only from demand but also from financing options Stryker has extended to some hospitals, according to Spencer Stiles, group president of the company’s ortho and spine groups. During an interview in this week’s DeviceTalks Weekly podcast, Stiles confirmed the device company is structuring some deals differently than it has in the past to accommodate new financial pressures on hospitals, a trend reported by others as well.
You can hear Stiles’ comments here.
Mako is a “premium technology that offers a premium result,” he said in the interview. “Hospitals are still saying, `We want that, and we’re still willing to make sure that we prioritize this so we can have these Makos available” for surgeries.
To make this possible, Stryker has begun offering orthopedics customers capital financing programs used primarily for high-ticket items in its medical-surgical business. Truist Securities estimates the Mako price tag to be $1 million.
“That’s one of our advantages at Stryker, we offer a variety of different solutions depending on what that customer needs or their situation” including rentals, Stiles said. “We have an entire financial arm… so we’re able to go out and offer creative financing solutions to our customers. And that really gives us an advantage in making sure we can meet their financial needs as well as capitalize on getting the technology they want in their house.”
Stryker isn’t alone in offering this flexibility. You can hear more interviews on this topic in last week’s episode of the DeviceTalks Weekly podcast.
