MAKO-HMA Pact to Set New Sites

MAKO Surgical Corp. (MAKO - Snapshot Report), a medical devices firm that markets both the Rio Robotic Arm Interactive Orthopedic surgical system as well as the proprietary Restoris implant for less intrusive orthopedic procedures known as MAKOplasty, recently entered into a firm commitment for the setting up of eleven new MAKOplasty sites with Health Management Associates (HMA - Analyst Report). It is anticipated that these MAKOplasty sites will be established during 2011.

MAKO Surgical Corp. stated it was encouraged by the growth of its partnership with Health Management and its decision to utilize MAKOplasty in its orthopedic programs. The latest order from Health Management permits the company to reiterate its earlier announced annual guidance of 40 to 46 systems.    

Florida-based Health Management is engaged in the ownership and operation of general acute care hospitals in non-urban communities across the U.S. The company is an active acquirer of underperforming hospitals with a turnaround potential in high-growth markets. Health Management’s competitors, in niche markets, include Community Health Systems (CYH - Snapshot Report) and LifepointHospitals (LPNT - Snapshot Report).

Health Management offers a wide range of services including general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services and psychiatric care. It also provides outpatient services and specialty services in cardiology. Health Management aims to deliver compassionate and high quality health care services to improve the quality of life for patients, physicians and the communities it serves.

Health Management is benefiting from a gradual growth in admissions largely due to improvements in Emergency Room and sustained physician recruitment. Moreover, the company is well placed to expand margins from continuing operations and drive above-industry average EPS growth.

The Mako Rio, from MAKO Surgical Corp., is a doctor-friendly surgical platform that uses a robotic arm and patient-specific visualization know-how. It prepares the knee for the insertion of MAKO's resurfacing Restoris implant through a small cut. The FDA approved and CE Mark recipient Rio system permits doctors to provide accurate, generally reproducible bone resurfacing for a significant, yet largely unserved, patient universe suffering from nascent to mid-stage osteoarthritic knee ailment. MAKO owns intellectual rights consisting of over 250 owned as well as licensed patents and patent applications in such areas as robotics, computer assisted surgery and implants.

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