Hospital expenditure should logically rise during pandemics, right? Yes, but not always straight away. Indeed, total US healthcare spend actually fell 18% annualised in Q1’20, as operating theatres were converted into ICUs and non-critical procedures postponed to free up resource for COVID-19 patients. It’s a similar picture worldwide, and why J&J recently said that its medical device division was experiencing contract delays. The important takeaway being that these orders are not lost, and should come back in future quarters – probably post any 2nd infection wave in the Autumn.
01 May 2020
COVID-19 impacts short-term outlook
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COVID-19 impacts short-term outlook
Kromek Group Plc (KMK:LON) | 5.8 0 0.9% | Mkt Cap: 36.9m
- Published:
01 May 2020 -
Author:
Paul Hill -
Pages:
5
Hospital expenditure should logically rise during pandemics, right? Yes, but not always straight away. Indeed, total US healthcare spend actually fell 18% annualised in Q1’20, as operating theatres were converted into ICUs and non-critical procedures postponed to free up resource for COVID-19 patients. It’s a similar picture worldwide, and why J&J recently said that its medical device division was experiencing contract delays. The important takeaway being that these orders are not lost, and should come back in future quarters – probably post any 2nd infection wave in the Autumn.