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Storm Clouds Over the Horizon in Orthopedics?

Executive Summary

A decade ago, the threat of price and margin pressure never materialized for orthopedics companies. Instead, the industry entered a prolonged period of strong pricing, aggressive new technology adoption, and widespread investor support. But some industry observers wonder how long the good times, particularly as expressed by strong pricing, can last, as the gulf between orthopedics suppliers' profits and those of their customers widen. Perhaps even more worrisome: Justice Department investigations into off-label use and how suppliers pay surgeons could seriously disrupt the industry by calling into question long-established practices.

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