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St. Jude Medical Inc. Message Board

  • nisus2000 nisus2000 Mar 11, 2009 10:27 PM Flag

    Is St. Jude a Socialist Business Model?

    Reading here, seems investors in the medical device industry (and health industry)don't fully comprehend business models. St. Jude, Metronic, Boston Scientific, etc., like similar companies, are Socialistic companies, yielding the majority of their revenue from the government/tax dollars.

    Compounding the issue, the tax $'s spent on their product is greater than tax payers contribute - hence you might say the Chinese have been purchasing these devices on behalf of US patients when they finance the governments healthcare overspending.

    The companies do not make product the consumer or market can afford. What we are likely to see, Obama, being an ultra conservative, will say, the government is not going to provide the companies huge marketing budgets and margins anymore. Hence, the government will source such devices (and pharma) competitively, and if these companies want to sell devices to their largest client, they will at the governments’ best negotiated price. (no liberal government giveaway as the last Administration did with their drug program)

    If companies don't want to to sell to the government, they will need to reduce prices, revenue and volume to meet actual market demand (TBD how many devices they can sell directly to the consumer, or WellPoint/UnitedHealth, etc.)Of course, this will bring strong market forces to the industry, as the market will ration availability based on peoples ability to pay.

    So socialist Medical Device and Pharma companies will soon need to compete in the free market due to Obama's ultra-Conservatism - although Socialist Republicans will likely fight these conservative market initiatives on behalf of Socialist business models and companies.

    This is the situation across much of the health sector...there is a threat of a real market economy within the industry - not socialism as so many "conseratives" proclaim.

    Feel free to share with others
    (Please excuse English/Typo's)

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