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Durable Medical Equipment: U.S. Market Size, Segments, Growth and Trends

DeciBio
April 1, 2011
67 Pages - SKU: DCB6221618

Abstract Table of Contents Search inside this report Related Reports

Countries covered: United States

Durable medical equipment (DME) is defined as instruments and products used for medical purposes and that can withstand repeated usage. DME is used primarily to help improve the quality of life of patients with injuries or illnesses.

Different stakeholders segment DME in different ways, making the market more or less inclusive. For the purpose of this report, we divided the DME market in six therapeutic segments:

Home respiratory therapy
Home infusions
Diabetes supplies
Patient positioning
Patient mobility
Other equipment

Using this segmentation, we estimate that the U.S. DME market reached ~$26B in 2010. We expect this market to grow 6% per annum (p.a.) to reach $31B by 2013, with various segments growing in the mid- to high- single-digits. We review the factors that will be driving and moderating this growth, including demographic trends, patient preference, cost benefits and international imports.

DME products are distributed primarily by national and local providers; other channels, such as 3rd party distributors or mail-in orders exist for some channels.

The DME market is highly fragmented, and counts more than 100,000 players. We review the consequences of this fragmentation for manufacturers, providers and payors, and highlight specific segments that appear less fragmented. This report discusses each segment and provides a detailed analysis of home respiratory therapy and patient mobility. For these two segments, we review key products, specific growth drivers and moderators, value chain, as well as manufacturer and provider economics in more details. We examine how reimbursement for oxygen tanks and standard wheelchairs spreads between manufacturers and providers.

Finally, we provide an analysis of six key events that may transform the industry. 1) We examine the implications of the Round 2 of the Medicare DMEPOS competitive bidding program aimed at replacing the existing fee schedule amounts with more market-based prices. 2) We discuss the entry of large new players in new therapeutic segments. 3) We analyze recent industry consolidation triggered by increased reimbursement pressure and Round 1 of DEMPOS competitive bidding. 4) We evaluate potential levers for private payors, given their increased scrutiny in this industry, and how they may control costs by negotiating with patients, physicians / hospitals and manufacturers. 5) We assess the potential impact of value chain disintermediation. 6) We discuss the status of patient discharge and referral laws.

Executive summary
Introduction: Context; Definitions; Market history; Market segments; Market growth
Medicare competitive bidding and reimbursement
Segment analysis: Respiratory therapy: Market overview; Products; Value chain analysis; Manufacturer economics; Provider economics; Value levers for private payors
Segment analysis: Patient mobility: Market overview; Products; Value chain analysis; Manufacturer economics; Provider economics
Future market trends: CMS competitive bidding, Round 2; New player entry; Industry consolidation; Increased payor scrutiny; Value chain disintermediation; Enforcement of referral laws
Appendix: Patient positioning; Diabetes supplies; Home infusion therapy; DME Manufacturers; Rise of home-base healthcare support
Table of exhibits: Round 1 and Round 2 competitive bidding areas; Abbreviations
List of Exhibits: Exhibit 1: Definition of DME segments in this report; Exhibit 2: Durable medical equipment segments; Exhibit 3: DME sales by competitors (2010); Exhibit 4: DME sales by provider (2010); Exhibit 5: Comparison of national and local DME providers; Exhibit 6: DME sales by therapeutic segment (2010); Exhibit 7: DME retailer market share by retailer and therapeutic segment (2010); Exhibit 8: DME market size by therapeutic segments (2007-2013E); Exhibit 9: Invacare revenues (2006-2010); Exhibit 10: DME market drivers and moderators; Exhibit 11: DME market size by public and private funds (2007-2013E); Exhibit 12: Metropolitan statistical areas selected for DMEPOS Round 1 and Round 2 competitive bidding; Exhibit 13: Medicare DMEPOS competitive bidding program Round 1 rebid bidding timeline; Exhibit 14: Lincare Revenues and net income (2004-08); Exhibit 15: Average price cut for products up for bid in 2007; Exhibit 16: Medicare DMEPOS competitive bidding program Round 2 timeline; Exhibit 17: Respiratory therapy by market segment (2010); Exhibit 18: Respiratory equipment drivers and moderators; Exhibit 19: Home respiratory therapy value chain; Exhibit 20: Distribution of respiratory equipment spend among manufacturers and providers; Exhibit 21: U.S. respiratory therapy manufacturer market (2010); Exhibit 22: Patient mobility by market segment (2010); Exhibit 23: Home medical equipment drivers and moderators; Exhibit 24: Patient mobility value chain; Exhibit 25: Distribution of patient mobility spend among manufacturers and providers; Exhibit 26: U.S. patient mobility manufacturer market (2010); Exhibit 27: Comparison of patient mobility providers by provider location; Exhibit 28: Potential trends disrupting the DME market; Exhibit 29: Product categories for Round 2 of DMEPOS competitive bidding program; Exhibit 30: Market capitalization of various DME competitors; Exhibit 31: Number of DME competitors by Medicare revenue segments (2001-09); Exhibit 32: Breakdown of average reimbursement rates by provider status and size; Exhibit 33: Drivers and moderators of disintermediation; Exhibit 34: Patient positioning market size by product type (2010); Exhibit 35: Patient positioning market drivers and moderators; Exhibit 36: Diabetes supplies market size by product type (2010); Exhibit 37: Diabetes supplies market drivers and moderators; Exhibit 38: Home infusion therapy market size by product type (2010); Exhibit 39: Infusion therapy market drivers and moderators; Exhibit 40: Hill-Rom revenue breakdown by product category (2009)*

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Durable Medical Equipment: U.S. Market Size, Segments, Growth and Trends

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