Environment

  • GHG Emissions
  • Air Quality
  • Energy Management
  • Water & Wastewater Management
  • Waste & Hazardous Materials Management
  • Ecological Impacts

Social Capital

Human Capital

  • Labor Practices
  • Employee Health & Safety
  • Employee Engagement, Diversity & Inclusion

Business Model & Innovation

General Issue Category
(industry agnostic)

Disclosure Topics (industry specific) for:
Medical Equipment & Supplies

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Access & Affordability

Affordability & Pricing

Legislative emphasis on health care cost containment and increased access is likely to continue to place downward pricing pressures on the Medical Equipment & Supplies industry. This pressure may be further articulated by consolidation among health care providers and the role of government-sponsored insurance programs. In the U.S., for example, companies that have relied on contractual advantages to protect profits may be challenged to enhance value as the government seeks to reduce its Medicare and Medicaid spending. Firms that are able to ensure fair pricing are likely to limit the negative impact of cost containment while recognizing the potential revenue opportunities associated with expanded access.

Product Quality & Safety

Product Safety

Information on product safety and side effects can surface after controlled clinical trials and approval. Subsequently, companies are exposed to the financial implications of recalls and other adverse events. Issues related to product safety, such as equipment failures, manufacturing defects, design flaws, or inadequate disclosure of product-related risks, can lead to significant product liability claims. Firms that limit the incidence of recalls, safety concerns, and enforcement actions for manufacturing concerns may be better positioned to protect shareholder value.

Selling Practices & Product Labeling

Ethical Marketing

Medical equipment and supplies companies face challenges associated with marketing of specific products. Direct-to-consumer advertisements for medical devices and outreach to physicians provide opportunities for increasing market share. However, challenges arise from the potential for marketing off-label uses, which can result in significant fines and settlements. Corporate disclosure of legal and regulatory fines and the codes of ethics that govern marketing activities will allow shareholders to better understand performance in this area.

Product Design & Lifecycle Management

Product Design & Lifecycle Management

Medical equipment and supplies companies face increasing challenges associated with the human and environmental impact of the industry’s products. Companies may face consumer and regulatory pressure to limit the use of material inputs that are associated with health concerns, while also addressing issues such as the energy efficiency and end-of-life disposal of specific products. Firms that are able to address these concerns while engaging in efforts to enhance product take-back may be better positioned to meet consumer demand and reduce future liabilities.

Supply Chain Management

Supply Chain Management

Supply chain quality is essential to protecting consumer health and corporate value. Medical equipment and supplies firms that fail to ensure quality and traceability throughout their supply chains are susceptible to fines, lost revenue, and reputational damage. In addition, companies may need to manage the use of material inputs that are considered scarce. Disclosure of supply chain audit programs, strategies to ensure traceability, and the management of critical materials may provide shareholders with an understanding of how companies in this industry are protecting shareholder value.

Business Ethics

Business Ethics

Medical equipment and supplies companies are subject to various international, national, and state laws pertaining to health care fraud and abuse. For example, in the U.S., anti-kickback laws and the Foreign Corrupt Practices Act generally prohibit companies from making payments for the purpose of obtaining or retaining business. The ability of companies to ensure compliance throughout their global and domestic operational footprint may have material implications. Corporate disclosure of legal and regulatory fines and the codes of ethics that govern interactions with health professionals may allow shareholders to monitor performance in this area.

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