Stryker’s (NYSE: SYK) Mako Surgical System remains a strong seller, even as hospitals grapple with pandemic-induced revenue cuts. The orthopedic giant announced the implementation of its 1,000th system in September.
These results stem not only from demand, but also from the financing options that Stryker has extended to certain hospitals, according to Spencer Stiles, president of the company’s ortho and spine groups group. In an interview this week Weekly DeviceTalks podcast, Stiles confirmed that the device company is structuring some deals differently than in the past to deal with new financial pressures on hospitals, a trend reported by others as well.
You can hear Stiles’ comments here.
Mako is “premium technology that delivers premium output,” he said in the interview. “Hospitals always say, ‘We want this, and we’re always ready to make sure that we prioritize this so that we can have these Makos available’ for surgeries.
To make this possible, Stryker began offering orthopedic clients with capital funding programs used primarily for big ticket items in their medico-surgical business. Truist Securities estimates Mako’s price at $ 1 million.
“This is one of our advantages at Stryker, we have a variety of different solutions depending on that customer’s needs or their situation,” including leasing, said Stiles. “We have a whole financial arm… so we are able to offer creative financing solutions to our clients. And that really gives us an edge in making sure we can meet their financial needs and capitalize on getting the technology they want into their homes.
Stryker is not alone in offering this flexibility. You can hear more interviews on this topic in last week’s episode of the DeviceTalks Weekly podcast.