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Stryker CEO Stephen MacMillan on the company’s growth and its advances in health-care technology.
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You -- all right even with that debt ceiling bill signed into law slashes to Medicare payments doctors and hospitals.
Could still very much be on the table in an effort to slice and dice the nation's deficit but.
In spite of the uncertainty from Washington to Wall Street shares of Stryker.
I guarantee if you've been in the hospital you probably lay out what -- there were electric hospital beds or you have a near hip replacement they made it.
-- shares are up about 8% in the past year.
Chances are you have had some contact if you've ever been sick in a hospital with Stryker.
Just how could these potential cuts impact one of the world's leading medical technology companies joining us now -- -- Fox Business exclusive Stephen MacMillan.
Chairman CEO and president of structure should mention your estimates you met 42 quarter.
You were up about sixteen point 3% for sales but -- -- profits down about 3%.
Were you terrified at how this debt ceiling bill was going to come out and how do you feel about it today.
It did you know was first good to see get I think the the key concerns -- the theatrics in Washington I think its troubled both the American public and frankly business leaders.
I think the big concern that I look at it is.
Ultimately were looking at is probably more taxes.
More regulation.
And more uncertainty.
At a time when we need.
A focus on growth but there's no tax hike core revenues in this -- seat belt there's still so much uncertainty and let's face there's still a lot still to come on it.
And I think that's part of what the concerns run Medicare where Medicare cuts might come.
And it's all creating uncertainty that if you're running hospital today are little more concerned and again I think the rhetoric and where we need to get focused in Washington is on growth.
And private sector growth station this country was built on private sector.
Companies are creating Nouriel list and that's we have built the middle class of this country not the government.
It's the private sector it's companies like Ford Motor everything else over the years have created the private sector jobs have -- growth.
And that's where the rest of the countries of the world the Chinese and everybody else are focusing on we've got to get our discussion away from debt and cost cutting and towards growth.
OK you've also looked at how to grow within your company you've made some acquisitions Boston Scientific -- -- of course business as well and then you've got a French company that you also brought in France's or or the movie does have growth.
And and looking at that we talk to analysts over the years about striker that said they have all this cash what are they gonna put it to work you finally half.
What does that do for your bottom.
Line it will do a lot over time first -- we think -- do a lot for patients -- a lot for.
For health care in general and also very good for us as you as you said we've been criticized actually times.
We it's so much cash on the balance sheet we were waiting for the right buying opportunities and then we've deployed that cash.
We bought a great business from Boston Scientific that has the -- vascular business.
Makes the coils and stents trophy at summit got a couple of props here this is important show for our viewers how tiny these are sure now this one right here tell me what that that is the oil that is used to treat brain and -- and if you think about health care costs and better technology -- What that did it does in the old days you -- to cut open skull.
And clip these looks like in the -- carp yes I have see it it's probably tiny tiny what we can now do is going through the federal artery in the leg.
And treat brain and your reasons appear.
So through imaging technology and through the -- -- -- the lead we guided through the -- through the ephemeral artery up into the skull so you're not having to cut open the skull.
And what this and what -- and then this one is a stent a brain -- also mannerisms Stan fact that as you see I don't know if you can see it's kind of -- -- And again just a great technology -- -- developed by the team that also helps to prevent the clotting.
They can lead to the ruptured mannerisms which is you know can you know certainly be deadly -- case.
So back though to the debt ceiling deal everybody was terrified -- your hospital is going to be cut -- from certain things.
You guys are smart enough to have done a million studies I'm sure how do you fare in this new -- -- them.
We've been trying to reposition ourselves to be offering more cost effective solutions to hospitals and I think one of the unique stories of striker.
Because we make both implants but also as you mentioned beds and stretchers.
And operating room equipment.
Were able to provide a lot more efficiencies to the hospitals even our new beds they can help nurses reduce their workflow and monitor patients.
And and prevent you know falls patient falls on the things so what we're doing is trying to help hospitals run more efficiently.
Which I think is why we are continuing to do very well despite the challenging.
Of it at the hip replacements.
The knee replacements.
During a recession during difficult times to people actually hold off on spending the money to get that because it could be so painful.
When you need a hip replacement I mean.
How is just that to me is really sad that people of held off.
Well and this is the first time the first down -- economic gap we've ever seen patients actually defer that surgery.
And I would say it's for two reasons one is paying the really really bigger concern that we senses a lot of knee replacement strictly go to women.
In this economy and in the recession a lot of men of lost their jobs women are now the providers.
And a lot of women have not wanted to take time off from their jobs this is interesting to me.
In because they don't want to they worry that there might get laid off help women have a Caucasus that people call -- -- man's session where construction workers were getting laid out so you're saying that women.
Who are the providers have not wanted to take the time off to heal from -- hip replacement yes and and I think both from the time and being concerned about being out of work during this time and do they become expendable as we finish why the change passed now.
We would certainly hope that in Washington and there will become more focus on growth and again I would say it's private sector growth it's not government spending.
That is not proven to be the case it never has provided sustained growth in this country we've got to get back to me.
Corporate tax reform -- Immelt council everybody else is -- would you give up its tax deductions absorb a lower it would absolutely for the certainty what we need.
Is -- lower overall rate to be competitive in the world.
Rate is now the second highest in the world's known as soon as Japan cuts there will be the highest we are clear out -- the rest of the countries have figured out.
The way to get jobs is to have a lower tax rate by the -- eliminate all the deductions you know it has gotten ridiculous because we'll keep -- justify high rate.
And then cut away from it -- all of us would take more certainty.
And even if it's a higher rate from what might be paying today I would tell you we as a company tend to be on the higher end because we probably.
-- you know we've been paying our fair share of taxes and very proud of that we would benefit I think from a simpler straightforward tax code.
Stephen MacMillan CEO president of strike -- the stock is up 8%.
And my cousin Stephen Carl working -- in the midwest and surgical sales He wears doctors screens now -- all excited selling its we're glad to have them.
I'm glad I haven't give you insight into us okay thank you so much.
Really appreciate it -- you know one of Stryker the --
