Moody’s warned investors that supply chain disruptions and healthcare worker shortages will continue to pressure medical product and device companies in 2022.
The good news from the Moody’s Healthcare Quarterly report? The supply chain issues are manageable, with Moody’s estimating that transportation costs average less than 3% of revenue for most large, rated device companies, which won’t eat up too much of those companies’ 20% profit margins.
The bad news: Healthcare labor shortages show no sign of improvement, with nearly a quarter of U.S. hospitals reporting critical staffing shortages in early January due to the omicron COVID-19 variant, according to the U.S. Department of Health and Human Services.
