The medical equipment market will be an interesting one to keep an eye on as legislation changes. For the past few decades, it’s been an easy market to make a profit in because cost concerns have been alienated from health care decisions.
As legislation changes, hospitals willingness to invest in special equipment will change. If we move in the direction of more of the same, hospitals will be more willing to buy equipment that will allow them to recommend superfluous tests to patients so they can bill the insurance companies, Medicare, etc. If we move in the direction of Canadian policy where spending is limited and therefore health care becomes first-come-first-served, we will see a fall in equipment purchases.
We will also see a continued growth in demand for GE’s products abroad as other economies strengthen and as more and more Americans are forced overseas to get health care.