Medline Industries, Inc.Mundelein, IL, United States

Group Hopes to Increase Safety of Imports - The US Interagency Working Group on Import Safety released an action plan intended to improve the safety of imported medical devices and products. The group recommends negotiating agreements with China to share information and certify medical device and product safety rather than relying only on inspecting products as they arrive in the US. Domestic medical supply and device manufacturers are likely to face increased competition if the quality and safety of low-cost imports increase.

Declining US Dollar may Boost Industry - US exports of medical supplies and devices are likely to increase as the value of the US dollar falls relative to other currencies. The US dollar fell almost 11 percent against the euro in 2007, and many experts say that a slowing economy in 2008 will keep the value of the US dollar down. Wachovia Capital Markets raised its 2008 revenue growth prediction for hip and knee implant maker Zimmer to 2.8 percent from 1.4, due largely to the declining value of the US dollar.

New CMS Bidding Rules may Cut Reimbursement - A new Centers for Medicare and Medicaid Services (CMS) competitive bidding system, created to reduce fraud, includes a cap on bids that experts say could reduce the amount Medicare pays for durable medical equipment by up to 20 percent. Medical supply and device manufacturers may have difficulty raising prices as a result. Experts also say that a requirement that medical equipment distributors be accredited by September 20, 2009, to participate in Medicare may impose a much heavier burden on small distributors, thus reducing the number of medical supply and device manufacturer customers participating in Medicare.