Medtronic PLC (Medtronic) is a medical technology, services, and solutions company. The company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. The company’s primary customers include hospitals, clinics, third-party healthcare providers, distributors, and other institutions, including governmental healthcare programs and group purchasing organizations.
Medtronic has demonstrated a commitment to improving the energy efficiency of its operations. The company has created reduction targets for greenhouse gas emissions, energy use, water use, and waste; it also utilizes green building features on many of its new constructions to increase efficiency and drive cost savings in the long term. In addition to reducing its environmental footprint, Medtronic provides the critical service of creating channels through which marginalized communities and societies can acquire access to solutions to endemic health care challenges. For example, the company has several initiatives to promote infrastructure development, awareness and capacity building in countries such as Brazil, India, China, Ghana, Mexico, and Columbia. Lastly, Medtronic has developed a comprehensive human capital management program, which seeks to boost employee satisfaction and mitigate turnover. In particular, the company utilizes compensation schemes that reward productivity such as stock ownership and variable pay plans, and it also implements formal training and talent pipeline programs to further support these efforts.
Despite numerous policies and programs to address product quality issues, Medtronic has faced a significant amount of recalls, particularly Class I recalls, which highlight a need for continued improvement in this area. That being said, the company’s normalized recall rate is in line with that of its industry peers.
Industry: Health Care
Country: United States
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.