Despite the fact that at least two of these technologies have been commercially available in the United States for almost two years, with well-established clinical benefits for the appropriate patient population, HCFA has still not made a national coverage decision for Medicare reimbursement. Not unlike the pressure FDA faced during the past few years to streamline its product approval process, HCFA is now the focus of the efforts of a coalition of health industry trade groups working to make national Medicare processes more understandable, predictable, and timely. The group has made several recommendations to HCFA, including making the results of meetings publicly available, making public notices of requests for technology assessments by third parties, providing a reasoned explanation of the basis for a decision, and, importantly, establishing a maximum one-year timetable for making decisions. With the current political climate in Washington, it is likely that the Medicare coverage process will become increasingly predictable and that decision time frames will improve dramatically. This heightened activity sustained itself during both healthy and weak public equity markets.
Critical mass is essential.
Large companies need new technologies and broad product offerings to support their expensive sales and distribution organizations and sustain their growth rates. Emerging-growth companies need sophisticated sales and marketing capabilities to commercialize their products successfully. This consolidation trend is only in its early stages. Opportunities for the Future Channel Medical Partners' fundamental outlook for the medical technology industry is positive. However, in today's increasingly competitive and cost-conscious environment, investors must be discriminating and selective in their investment decisions.