Surging inflation is spreading through healthcare, putting significant pressure on medical technology suppliers’ margins. While US prices for surgical products rose by only about 3% in 2020, the costs of key inputs have since climbed sharply, with year-over-year increases of more than 100% for materials like polystyrene and polypropylene and sizable jumps in transportation costs. Inflation has eroded profitability to the point that some products are now sold at negative margins. This environment creates an opening for smarter, more targeted pricing strategies, as suppliers can use brand strength, portfolio breadth, and differentiated products to regain margins through bold but tailored pricing moves.

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