Intuitive Surgical, Inc. (ISRG) Tanks: Here’s What I’m Doing

Second, it’s becoming clearer by the day that medical professionals are turning a more critical — and vocal — eye to the cost benefits of using the da Vinci System. Back in December 2012,  I lowered my personal allocation to Intuitive Surgical, Inc. (NASDAQ:ISRG) because the company warned that prostate patients were adopting more conservative treatment options. In plain English, that means they weren’t having procedures performed with da Vinci unless absolutely necessary.

This year, it’s hysterectomies — the company’s most oft-performed operation — that have come into question. Just as with prostatectomies, it now seems hysterectomy growth will be tempered.

What I’m doing
Does this mean I’m selling my Intuitive Surgical, Inc. (NASDAQ:ISRG) shares? No. In the grand scheme of things, I’m glad that medical professionals are encouraging some patients to forgo da Vinci surgery if it isn’t necessary. There’s no doubt that, in the short term, that’s going to hurt the company financially.

But I’m a long-term investor, and while the da Vinci might not be used quite so liberally for procedures any more, there’s still tons of room for growth both internationally and in terms of being approved for ever-more procedures. The machine offers patients a less-invasive option that decreases recovery time. Long term, I think that’s a winning bet.

I’m hoping that once hospitals get a handle on what Obamacare will look like, system purchases will pick up again.

Fool contributor Brian Stoffel owns shares of Intuitive Surgical. The Motley Fool recommends Intuitive Surgical. The Motley Fool owns shares of Intuitive Surgical.

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