tag:blogger.com,1999:blog-32053362.post4071869565937484411..comments2024-03-26T00:25:34.026-04:00Comments on Not Running a Hospital: Robots invade the rest of the worldPaul Levyhttp://www.blogger.com/profile/17065446378970179507noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-32053362.post-19701807397849815622014-07-23T13:16:23.461-04:002014-07-23T13:16:23.461-04:00You're sick, Levy. No wonder they don't l...You're sick, Levy. No wonder they don't let you run a hospital anymore. Get over your vendetta. Robotic surgery has its pluses and minuses. Way more MIS done since than before - and that's a good thing. It's OK to market a product you believe in.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32053362.post-54831758264895895672014-07-23T10:38:25.875-04:002014-07-23T10:38:25.875-04:00It's the efficient market hypothesis at work! ...It's the efficient market hypothesis at work! :)Paul Levyhttps://www.blogger.com/profile/17065446378970179507noreply@blogger.comtag:blogger.com,1999:blog-32053362.post-91488929571317772962014-07-23T10:36:59.350-04:002014-07-23T10:36:59.350-04:00Thanks Paul. With four straight quarters of negat...Thanks Paul. With four straight quarters of negative revenue growth, I’m amazed that the stock has held up as well as it has.Barry Carolnoreply@blogger.comtag:blogger.com,1999:blog-32053362.post-66790959516537461472014-07-23T10:10:04.260-04:002014-07-23T10:10:04.260-04:00Barry, here's a comment from one financial ana...Barry, here's a comment from one financial analyst:<br /><br />We would remain on the sidelines in ISRG after the Q2 print. While the stock is slated to open up nearly 10% Wednesday morning, we think the strength has more to do with a change in the reporting methodology of financial results (from GAAP to non-GAAP) than the underlying fundamentals of the company. We are not fans of the methodology as we believe it distorts earnings rather than augments clarity, and we continue to advocate the use of GAAP earnings/FCF to value mid/large-cap med-tech. Moreover, coming off four straight quarters of negative top-line growth and declining operating margins, ISRG is trading at a lofty 32x 2014E EPS, well above large-cap peers. We think the stock is overvalued at pre-market trading levels, thus would take profits.Paul Levyhttps://www.blogger.com/profile/17065446378970179507noreply@blogger.comtag:blogger.com,1999:blog-32053362.post-2978205995891645272014-07-23T10:01:43.895-04:002014-07-23T10:01:43.895-04:00I was unable to access the entire article but I no...I was unable to access the entire article but I note that ISRG stock is up 13% this morning because earnings, adjusted for special items, far exceeded analysts’ expectations.<br /><br />This may have been covered before but if the robotic approach in urological cases produces at least comparable long term outcomes to laparoscopic surgery but with less time in the hospital and / or a faster recovery time, I can understand why patients might prefer robotic surgery if they are insulated from any incremental cost. Just about everyone will prefer a five star hotel to a three star hotel if it doesn’t cost them any more money. The same principle applies here, I think.<br /><br />Surgical procedures are among the most profitable services hospitals offer. I think the best way to mitigate the proliferation of robots is for payers to move to reference pricing which means they will pay the same price for the episode of care no matter which surgical approach is used. If robotic surgery cost more, let patients pay the additional cost in exchange for the benefits they perceive they are getting.Barry Carolnoreply@blogger.com