In 2020, Stryker launched its ASC sales model to leverage the company's portfolio for the outpatient setting.
During the 2020 earnings call on Jan. 28, CEO Kevin Lobo spoke about where the company sees its ASC strategy headed.
"I'm delighted with the ASC offense [strategy] that we put in place. It involves people from different parts of Stryker that basically quarterbacked the deal and bring in multiple divisions based on the unique needs of every ASC," said Mr. Lobo, as transcribed by Seeking Alpha. "Every ASC is unique. Every deal is a customized deal but the way we've negotiated this enables incredible collaboration across our divisions."
Mr. Lobo predicts the trend toward hip, knee, foot, ankle and spine procedures will continue to accelerate in the ASC, especially since Medicare now covers total hip replacements there as of Jan. 1. "This is a trend for the future, and I actually think it's not going to stop in the United States," he said. "There are already countries like the U.K. and even Canada that are looking at moving to lower-cost sites of care. It's a good thing for healthcare overall."
He said the ASC model has exceeded expectations in the past year and he's confident the company will have continued success with ASCs and installing Mako robotic technology. The company sold and installed 100 robots in the fourth quarter of 2020 across all settings and overall grew the number of installed systems by 33 percent last year. Mr. Lobo said ASCs delayed large capital spending during the pandemic, but he has observed their spending is starting to pick up again.
Stryker's acquisition of Wright Medical also fits into its ASC strategy. Wright Medical's portfolio includes extremities products that are currently used in ASCs.
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