MAKO Surgical Corp. (MAKO), Intuitive Surgical, Inc. (ISRG): A New Survery Will Boost These Medical Device Companies

Hospitals

Hospitals stand to gain from this survey if they have robotic surgery centers already set up, such as HCA Holdings Inc (NYSE:HCA). HCA, according to its website, has 6 centers for minimally invasive robotic surgeries. As the AMA pushes physicians to recommend robotic surgeries, word will get around to patients looking for the best care to seek out hospitals offering the best service. This will increase the number of patients HCA will receive as they already have several centers set up. As more patients go to these centers, MAKO Surgical Corp. (NASDAQ:MAKO) and Intuitive Surgical, Inc. (NASDAQ:ISRG) will benefit from increased maintenance fees, device sales going up, and PE expansion as investor sentiment turns bullish again. HCA will benefit as they perform more surgeries that are safer and have better outcomes, so they gain a larger chunk of market share and get a better reputation for other surgical needs as our population gets older. Plus, these surgeries are cheaper to do, which will push up margins. HCA’s hospitals with minimally invasive robotic surgeries are located strategically in areas with older demographics, like Florida.

Final Thoughts

While HCA has done well, Intuitive Surgical, Inc. (NASDAQ:ISRG) and MAKO Surgical Corp. (NASDAQ:MAKO) have been getting crushed on the market. A thumbs up from the healthcare industry will help drive future growth as more physicians and surgeons recommend using the safer, minimally invasive surgeries. Hospitals will also want to stock up on these devices, as it will make them more competitive in the free-market healthcare system the US has, and enables surgeons to have higher survival rates. If you can tout better surgical success then more people will want to come to your hospital for medical needs, because they know you can deliver. That’s why I’m ullish on minimally invasive surgeries and all three of these stocks.

The article A New Survery Will Boost These Medical Device Companies originally appeared on Fool.com and is written by Callum Turcan.

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