CareFusion's Technologies Meet Health Care Needs
Companies that help hospitals to meet and conform to the health care insurance industry's standards of reimbursable products and procedures have a bright future in the current global increase in people needing medical treatments.
That's why CareFusion (CFN) last week released quarterly earnings that were both strong and bodes well for the year ahead. CFN beat the Street's consensus estimate and added 1.6% to the company's gross operating margin.
Jim Cramer, the co-portfolio manager of Action Alerts PLUS and the host of CNBC's "Mad Money" recently interviewed the CEO of CFN and the video is well worth watching. You'll learn the company has a very active mergers and acquisitions pipeline and is in expansion mode.
Here's an example of the kind of product CareFusion makes that hospital surgery rooms can hardly live without: On Tuesday the company launched a "take-apart laparoscopic scissor." This is in addition to its lineup of other precision, take-apart surgical instruments .
The press release mentions that these kind of surgical instruments "... provide sterile, sharp blades and a new insulated shaft for each procedure. Designed for easy assembly and disassembly, the scissors feature an ergonomic, reusable ring-handle that also fits Snowden-Pencer take-apart clamps, dissectors and graspers. The handle is designed to more evenly distribute pressure than traditional handles and accommodates a variety of hand positions for comfort and precision during surgery.
"To ensure the new scissors meet customer requirements, CareFusion conducted a limited market release to test the scissors in surgical procedures. After evaluation by more than 30 surgeons who performed approximately 60 procedures, the scissors received high levels of customer satisfaction and 100% of surgeons who evaluated the product indicated they would recommend it to peers."
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Now here's where the rubber meets the road. If the surgeons and surgical assistants in an operating room will give tacit or direct approval of the efficacy of these products, sales are likely to soar. Apparently that's the kind of response CFN is receiving from professionals who have used its products.
"The new Snowden-Pencer laparoscopic scissors are very modular, so we can adjust a tray as we see fit to create a very cost-effective approach to our surgeries," said Dr. Ryan Tyner, a bariatric surgeon at Lovelace Westside Hospital in Albuquerque and Fellow of the American College of Surgeons. "I prefer to use the best instruments for my patients, and my personal opinion is that this is the best line on the market."