Durable medical equipment (DME) are instruments and products used for medical purposes that can withstand repeated usage. DME is used primarily to help improve the quality of life for patients with injuries or illnesses.
Stakeholders segment DME in different ways, making the market inclusive. For the purpose of this report, the DME market is divided in six therapeutic segments:
Using this segmentation, it was estimated that the U.S. DME market reached ~$26B in 2010. This market grew 6% per annum (p.a.) and reached $31B by 2013. Various segments of the market grew in the mid- to high- single-digits. The factors that are driving and moderating this growth are reviewed, including demographic trends, patient preference, cost benefits and international imports.
DME products are distributed primarily by national and local providers; 3rd party distributors or mail-in orders exist for some channels.
The DME market is highly fragmented, and is comprised of over 100,000 players. The consequences of this fragmentation for manufacturers, providers and payors are reviewed, as are 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, key products are reviewed, as are specific growth drivers and moderators, value chains, and manufacturer and provider economics. Reimbursement for oxygen tanks and standard wheelchairs spreads between manufacturers and providers are also reviewed.
Finally, an analysis of six key events that may transform the industry are provided. These events are as follows:
- 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.
- The entry of large new players in new therapeutic segments.
- Recent industry consolidation triggered by increased reimbursement pressure and Round 1 of DEMPOS competitive bidding.
- Potential levers for private payers, given their increased scrutiny in this industry, and how they may control costs by negotiating with patients, physicians / hospitals and manufacturers.
- The potential impact of value chain disintermediation.
- The status of patient discharge and referral laws.
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