Ryan Stancil,
Editor
April 6, 2021
Publisher’s Note: Please enjoy a new report on health care, "Healthcare in a Post-COVID World: Four Profitable Trends to Watch" by Daily Profit Cycle's editor Ryan Stancil.
It will be sent to you in sections over the next few days...
On Daily Profit Cycle, we’ll be highlighting certain sectors from time to time...
Health care, as you know, has evolved quickly — and not just because of COVID. Ryan will cover the new landscape for you over the rest of this week.
Enjoy.
— Nick Hodge
"Healthcare in a Post-COVID World:
Four Profitable Trends to Watch"
PART I
It goes without saying that the post-COVID world will take some getting used to. Even as people get used to being able to attend gatherings and travel again, some new aspects of life are here to stay.
More companies will be adopting “work from home” policies. More people will be receptive to the idea of wearing masks during times like flu season. Some more optimistic people think that the world’s collective 2020 experience will lead to a decline in the polarization that largely defined the years leading up to the pandemic and an increase in trust in experts.
That is to say that some changes will be tangible, everyday experiences while others might be more long-term and not as easily noticeable.
Even so, 2020 has ushered in fundamental changes that will affect just about every industry, but the healthcare industry will see more change than most.
In order to adapt to the challenges of the pandemic, certain trends came to the forefront over the course of 2020 and are set to become standards in healthcare.
Let’s take a look at four in particular and see what changes they’ll bring about.
Robots
There was a time when robots were the domain of science fiction, but they have practically been mainstream for years now. Think about the popularity of something like the Roomba and you can see just how common and accepted robots have become in a short amount of time.
When it comes to the healthcare industry, robotics will be one of the cornerstone technologies that will transform the industry over the next few decades.
It makes sense, because automation is set to become one of the big economic trends, so healthcare could stand to benefit from it just as much as something like manufacturing or transportation. When people think about the healthcare industry, thoughts usually go to the work done by doctors, nurses, and other frontline personnel. What many people don’t think about are the more routine, mundane jobs that need to be done.
While doctors and nurses are taking care of patients, there still needs to be administrative work done. Likewise, rooms need to be disinfected for the safety of staff and future patients. Putting robots on just these particular tasks makes it possible for hospitals to save money without sacrificing the quality of the care that patients receive.
And it doesn’t end there.
One of the biggest growth areas for robots in healthcare is in surgery. It’s such a big area that the surgical robots market in just the U.S. is expected to be worth over $8 billion in 2025. Now, it’s important to point out that surgical robots aren’t doing procedures themselves. Instead, these systems are assisting the surgeon in making precise motions from a nearby console. It’s almost like controlling a video game. At no point does the robot actually do any thinking on its own.
The big advantage is that the robotic tools used by the surgeon have better dexterity and a greater range of motion than any human, making it much easier to perform delicate operations in hard-to-reach places. These procedures involve less pain and risk of infection and shorten hospital stays and recovery times.
Other robots assist medical professionals in other ways. Think about all of the materials that need to be moved around hospitals: Lab samples, food, linens, medications, and waste. Robots have already been tasked with moving these materials where they need to go so that hospital staff can focus more on patient care and treatment. This is a task that needs to be carried out 24 hours a day, 7 days a week, so anything that can make the process more efficient is welcome.
In the field of medical robotics, Medtronic (NYSE: MDT) is one name to look at. The company was founded in 1949 by two engineers as a repair business that focused on medical electronics. One of those engineers was a man named Earl Bakken, who would create the first wearable pacemaker in 1958 and the company would soon go on to produce the first implantable pacemaker.
In the years and decades after, Medtronic would go on to offer products internationally and continue to produce medical device innovations that would serve as standards for medical professionals everywhere. In February 2020, Medtronic acquired Digital Surgery, a London-based provider of artificial intelligence-driven surgical data and analytics. This allowed Medtronic to strengthen its offerings related to surgical robots.
The move paid off for the company, which has enjoyed a steady climb in revenue since its acquisition of Digital Surgery. Indeed, the company has enjoyed a steady increase in stock value since it was first founded, but it has especially shined in the last year.
As of the time of this writing, the company’s 52-week range is $76.56 - $120.53 and it pays an annual dividend of $2.32 equal to 1.99%.
It’s a storied name in a crucial industry, and the history behind the company, along with the path it’s charting into the future, make it a strong bet when it comes to robot-assisted surgery.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle
For Part II, click here
Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.