Medtronic Inc. has opted to reconfigure the sales organization for many of its top-selling products -- a direct response to changing patterns in the way hospitals buy medical devices.
The Fridley-based medical technology giant said Thursday it will combine its U.S. cardiac and vascular sales forces into a single organization with some 2,700 sales representatives.
The impact on jobs will be "minimal," according to spokesman Christopher Garland. "This isn't a cost-savings move, it's about strategy."
The announcement is separate from February's announcement that the company would let 2,000 people go worldwide.
Morgan Stanley analyst David Lewis said in a note to investors Thursday that "cost reductions are not likely the aim of this action; rather this is an acknowledgement of the expanding role of centralized selling leadership in dealing with more coordinated hospital buyers."
The new sales structure, which will take effect May 1, will combine reps selling products such as defibrillators, pacemakers, stents and heart valves.
Historically, doctors held great sway in terms of what devices a hospital would stock. But as hospitals seek to cuts costs and operate more efficiently in the wake of health care reform, buying decisions are increasingly being made by administrators.
Medtronic said creating one sales organization will prove more efficient for both the company and customers. While individual reps will maintain their specific product areas, a new strategic account management team has been formed to focus on a cross-business portfolio of products.
