During my various commutes over the past week I have been hearing a new radio commercial about Intuitive Surgical Inc. (NASDAQ: ISRG). The City of Hope Hospital in Los Angeles is advertising their Di Vinci robotic surgical procedures to attract patients.They use the catch phrase "The science of saving lives" while promoting less invasive surgical procedures, shorter hospital stays, and faster recovery. These are well-known themes among the medical profession and investors but it is the first time I have heard the story promoted for a competitive advantage among hospitals. I am sure it won't be the last.
Certainly this will raise the bar among other hospitals competing for similar business and simply to keep their Di Vinci operating rooms productive, cost effective, and profitable. It also means that any hospital without the equipment will soon be deemed second rate, if they are not already.
Perhaps we will soon be hearing competing hospitals bragging about having multiple Di Vinci's or more trained doctors or the highest number of procedures or new procedures. Where will it end? When it is common place and every hospital is using the system.
Have you heard any radio advertising from hospitals in your city? Fans of Elvis Costello can check out Radio, Radio" at Last fm. here.
ISRG closed last Friday at $299.17 and is trading down slightly this morning. It has been hovering around $300 for the past two weeks.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of ISRG and BRK.B.











Reader Comments (Page 1 of 1)
8-18-2008 @ 3:16PM
Tracy said...
This is not a new practice. I have been promoting my client's da VinciĀ® robotic surgical system for several years. It is leading-edge technology, requires additional training by not only the surgeon but also the OR staff, and is quite an investment -- all indications of a facility's commitment to providing the most advanced care to its patients.
8-18-2008 @ 7:20PM
william lindblad said...
Hey, why not? Medical is competitive. I prefer to put mine in the hands of those that I trust, which is the Mayo Clinic. Cutting edge tech is all in and the latest big one that I am aware of is the one that looks (and acts) like a particle accelerator. I believe there are only about 6 in the country and they are used for cancer treatment. Multi-million dollar machine as big as a football field. Drawback - patient's - it can only see a limited amount, but it can cure where nothing else can.