Becker's ASC Review

69 ORTHOPEDICS Medtronic spine business 'remains attractive' despite quarterly revenue slip By Alan Condon M edtronic executives said in the company's Aug. 23 earnings call that its cranial and spinal technologies business "remains attractive" despite revenue decreasing 7 percent year over year in the first quarter of fiscal year 2023, according to Seeking Alpha. In the last quarter, revenue in Medtronic's spine and biologics segment decreased in the mid-single digits, but this was partially offset by a 4 percent increase in its core spine business in the U.S. "We won market share on the strength of our overall portfolio, including our unit AI-enabled surgical planning platform and patient- specific implants, which had strong double-digit sequential growth in our U.S. user base," CEO Geoff Martha said. "In addition, our recently launched Cataly PL spinal system designed to target the TLIF and PLIF markets, drove meaningful results in [the first quarter]. And the breadth of our enabling imaging, navigation and robotic technologies is a key differentiator." Mr. Martha highlighted the importance of developing not just the spine robot, but all the enabling technologies that integrate with it. However, in the fiscal year first quarter, Medtronic noted extended purchasing times from hospitals, particularly toward the end of the quarter, as hospitals aim to preserve cash. "We have more opportunities to put forth different models where we actually utilize the implantables and other disposable products as a way of financing this particular capital," said Brett Wall, president of Medtronic's neuroscience portfolio, which includes the cranial and spinal technologies segment. "We didn't see a significant uptick in our O-arms or StealthStations during the time … but we saw a little bit of an uptick with Mazor in that particular model." Despite revenue dips in certain segments, Medtronic said it expects organic revenue growth in its fiscal year 2023 to be between 4 percent and 5 percent. However, if recent foreign currency exchange rates hold, fiscal year 2023 revenue growth would be negatively affected by between $1.4 billion and $1.5 billion versus the previously stated $1 billion to $1.1 billion. "While our markets are facing macroeconomic challenges, we're focused on identifying ways to offset their impact to our financials," CFO Karen Parkhill said. "Looking ahead, we expect organic revenue growth to improve each quarter, with the second half of the fiscal year much stronger than the first. We are optimistic about our future, as we create markets and realize new opportunities." n $200M+ orthopedic campus on track to open ASC by year's end By Alan Condon R ochester, N.Y.-based UR Medicine plans to open a surgery center at a 300,000-square foot outpatient orthopedic campus by the end of the year, rochesterfirst.com reported July 1. The campus will be one of the country's largest orthopedic campuses, which UR Medicine estimates will see about 250,000 patients annually. It will cost more than $200 million to develop and will employ almost 700 staff, with almost 200 new jobs introduced, according to the report. The campus will include a four-story tower, slated to open in the fall of 2023, that will feature diagnostic imaging, exam rooms, sports medicine facilities and wellness services "There will be a dedicated space for sports performance and injury prevention, an ambulatory surgery space, and then also the ability for people to have surgeries that require an overnight stay, which is a real innovation," Paul Rubery, MD, chair of UR Orthopedics, told the publication. n Former Hahnemann University Hospital orthopedics chief dies By Carly Behm N orman Johanson, MD, the former chief of orthopedics at Philadelphia-based Hahnemann University Hospital, died July 3 at age 72, The Philadelphia Inquirer reported Aug. 25. Dr. Johnson became chair of orthopedics at the hospital in 2000 and performed thousands of surgeries and mentored hundreds of students and residents. Before joining Hahnemann University Hospital, he was a professor and program director at Temple University Lewis Katz School of Medicine in Philadelphia. A former colleague told the Inquirer that Dr. Johnson was known for his compassion. "When we are faced with a tough case or patient, we all ask ourselves: 'What would Norm do?'" the unnamed physician said. Dr. Johnson died of complications from diabetes, according to the report. n Image Credit: Decan Chronicle

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