Piper Jaffray: Hospital And Freestanding Center Capital Spending Continues To Show Improvement

from Benzinga.com:

>>Piper Jaffray: Hospital And Freestanding Center Capital Spending Continues To Show Improvement

“Our provider panelists appeared more willing to commit capital to projects that drive revenues through increased patient volumes (i.e., throughput) and/or products that address new revenue streams than we have seen in recent years. Fortunately, LINAC manufacturers have stepped up R&D efforts in spite of weak capex trends and have released a number of products recently that meet these criteria, including TrueBeam (VAR), TomoHD (TOMO) and CyberKnife VSI (ARAY ). We believe recent product innovations, reimbursement clarity, the elimination of most health care reform concerns and an overall healthier economic backdrop (relative to a year ago) support a more optimistic outlook for large-dollar capital equipment purchases for the foreseeable future,” the analysts say.