SOURCE: Kalorama Information

Kalorama Information

May 05, 2010 11:38 ET

Healthcare Reform Giveth and Taketh Away, According to Report

NEW YORK, NY--(Marketwire - May 5, 2010) - The new healthcare reform law signed by President Obama accomplishes the goal of insuring Americans who were previously uninsured, but it will have both positive and negative impacts on the industry, according to a white paper released by Kalorama Information titled "Healthcare Reform: Winners and Losers." Manufacturers of traditional medical devices and pharmaceutical products will see a downside from the new law. But other parts of the industry, particularly those areas which can save healthcare costs, stand to benefit.

"In terms of whether reform will be good or bad for the industry the answer is, it depends," said Bruce Carlson, Publisher of Kalorama Information. "Some parts of the industry will see a gain from all the new customers with insurance coverage, but for some healthcare stakeholders, those new customers come with a reimbursement cut or a tax."

According to Kalorama Information, specialist physicians are likely to benefit from insured customers that can now pay for their services. But for primary care physicians already dealing with full waiting rooms, an influx of patients is a small benefit.

"The potential patient load increase, without corresponding revenue increases is likely to make their business more difficult," Carlson said. "Unless other entities can relieve the load, we think it will also impact job satisfaction and recruitment of primary care doctors."

Retail clinics should benefit from more insured customers, and nurse practitioners are likely to gain opportunities in the long-term, as the system seeks to deal with heavier patient loads. Traditional providers, such as hospitals and nursing homes, could see more patients, but the reimbursement cuts in the law will have the most immediate impact on them. 

In terms of product manufacturers, Kalorama sees the new legislation as a negative for traditional pharmaceutical companies, though one that the industry expected and likely worked into business planning. Medical device companies are not likely to smile as they face a new tax. But at least two industry sectors will prosper -- biotech companies will benefit from tax credits on biologic projects, and diagnostic companies are well positioned to gain from the expected increase in doctor's visits.

More information on the Kalorama Information "Healthcare Reform: Winners and Losers" white paper can be found at http://www.kaloramainformation.com/redirect.asp?progid=79044&productid=2625403. Kalorama will provide a copy of the white paper to interested media members.

About Kalorama Information
Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter (http://www.twitter.com/KaloramaInfo) and LinkedIn (http://www.linkedin.com/groups?gid=2177845&trk=hb_side_g).

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