Medical Equipment News

Advanced Medical Optics Inc. slashed its 2007 expectations to a loss to reflect the estimated impact of the company's global recall of MoisturePlus contact lens solution.

The maker of eye care products and surgery equipment said it now expects 2007 adjusted loss of 95 cents to $1.15 a share, compared with its previous forecast for adjusted earnings of $1.40 to $1.55 per share.

It now expects revenue of $1.05 billion to $1.07 billion down from prior range of $1.15 billion to $1.18 billion.

The Thai government has provided the Cambodian government with medicines and medical equipment for the prevention and control of bird flu, local newspapers reported Tuesday.

The aid, approved at a signing ceremony at the Cambodian Ministry of Health, is in the framework of a joint project to fight avian influenza signed by Burma, Cambodia, Laos, Vietnam and Thailand, Chea Moneth, Deputy Director of the Communicable Disease Control Department in the Health Ministry, was quoted by the Koh Santepheap as saying.

The donation consists of 53 bird flu testing kits, four cases of masks, nine cases of N95 masks, 17 cases of Latex gloves, four cases of hand-washing gel, and seven bags of Surveillance and Rapid Response Team (SRRT) equipment, the newspaper said.

The Thai government has spent 2.5 million U.S. dollars on the aid from a fund it set up in 2005 to help the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) fight outbreaks of the virus, reported the Kampuchea Thmey newspaper.

The aid aims to strengthen the capacity of hospitals in the border provinces of Thailand, Cambodia and Laos, it added.

Companies in the medical imaging equipment industry are lobbying Congress to overturn Medicare cuts that took effect in January, the AP/Arizona Daily Star reports. The cuts reduced Medicare reimbursements to doctors for performing X-rays, MRIs and other tests. For example, reimbursements to doctors for MRI scans have decreased an average of 38% nationwide. The cuts are expected to save $2.8 billion over five years.

The National Electrical Manufacturers Association and the Advanced Medical Technology Association as of 2006 employed 23 lobbyists to work on Medicare issues, arguing that the cuts will cause fewer physicians to offer in-office imaging. The groups argue that as a result, beneficiaries will have to travel farther and wait longer for medical scans.

Another group -- a new organization called the Access to Medical Imaging Coalition, which claims to represent more than 75,000 beneficiaries and health care professionals -- also is lobbying Congress to reverse the cuts. The AP/Daily Star reports that "at least part of the motivations for [AMIC's] efforts is the impact that Medicare cuts are having on the industry's bottom line." Sales of scanners manufactured by General Electric, Siemens AG, Toshiba and others fell by more than 20% during the last quarter, according to data provided by an industry group.

However, "it appears there is little sympathy on Capitol Hill for the imaging industry, which had close to $25 billion in revenue last year," the AP/Daily Star reports. No hearings currently are scheduled on the issue, and some health care experts are advising lawmakers that more medical technology does not necessarily lead to superior health care (Perrone, AP/Arizona Daily Star, 6/26).

Physician Cut In other Medicare news, the American Medical Association has launched a $2 million advertising campaign intended to push Congress to reverse a scheduled 10% cut in physician reimbursements, CQ HealthBeat reports (Phillips, CQ HealthBeat, 6/25). AMA will air a television ad in Washington, D.C., and areas with large populations of seniors through the July 4 congressional recess. The ad states, "Unless Congress takes action, Medicare services will be cut by over $40 billion, forcing doctors to limit their services, even stopping them from accepting new Medicare patients."

The Congressional Budget Office has estimated that reversing the cut would cost $21.7 billion over five years. Raising physician reimbursements by 1% would cost $23.9 billion over five years