GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Wedgewood Partners' David Rolfe Comments on Varian Medical Systems

November 12, 2012 | About:
Holly LaFon

Holly LaFon

262 followers
Varian Medical Systems (VAR) also detracted from performance during the quarter. During the quarter, the Centers for Medicare and Medicaid Services (CMS) proposed to reduce reimbursement rates for radiation therapy in freestanding clinics by more than what investors were expecting. The freestanding clinic market represents about 15% of Varian’s US Oncology revenues and about 5% of the Company’s total revenues. Interestingly, hospital radiation therapy reimbursement rates were proposed higher, despite its identical value proposition. We think that, similar to 2009, the ultimate rate cut will be much lower and clinics will have much more certainty about future reimbursement, which should boost the currently depressed demand for Varian Oncology products in the US.

From Wedgewood Partners Third Quarter 2012 Review and Outlook.


Rating: 2.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK