US Reprocessed Medical Device Market to Continue Strong Growth
TORONTO--(BUSINESS WIRE)--Aug 29, 2012--According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the United States market for reprocessed medical devices will continue to show strong growth, averaging almost nine percent per year through 2017. This growth will be driven by budget-conscious hospitals seeking cost savings. Already large, this market will become increasingly significant in the coming years.
In 2012 US healthcare facilities saved approximately $290 million in supply costs as a result of reprocessing cardiovascular, laparoscopic, orthopedic/arthroscopic and gastrointestinal devices. Approximately 25 percent of hospitals reprocess at least one category of these devices, with larger hospitals significantly more inclined to reprocess, since greatest savings are found when reprocessing is done in bulk. Approximately 45 percent of hospitals larger than 250 beds reprocess at least one category of medical devices, while only 15 percent of hospitals smaller than 50 beds do. Smaller facilities are subject to more bargaining pressure from original equipment manufacturers (OEMs) and are more fearful of litigation should a reprocessed device fail.
The prevalence of reprocessing is only going to increase. Purchasing and materials managers throughout a wide range of facility types and sizes are indicating their intention to increase use of reprocessed devices, driven by cost savings opportunities as well as improved regulatory standards. OEMs are also realizing that the trend cannot be restrained. Ethicon Endo-Surgery, which has opposed reprocessing in the past, recently acquired the second-largest reprocessor in the US, SterilMed. Another large OEM, Stryker, has also acquired the largest US reprocessor, Ascent Healthcare Solutions, the resulting entity being renamed Stryker Sustainability Solutions. These companies are now advocating integrated supply chain solutions that incorporate both reprocessed and OEM products, and hope to pursue growth opportunities in both OEM and reprocessed device markets.
"The biggest opportunity for reprocessed devices is exactly where OEM markets show the greatest growth,” said MRG Analyst Sohaib Perwaiz. “For example, the OEM markets for electrophysiology (EP) diagnostic catheters and direct energy devices will exhibit strong growth through 2017. Since these devices also tend to be expensive and bought in bulk, the high price difference between OEM and reprocessed devices has resulted in a strong demand for the latter.” Millennium Research Group’s US Markets for Reprocessed Devices 2013 report includes unit, average selling price and revenue information, along with market drivers and limiters and competitive landscape for reprocessed EP catheters, compression sleeves, disposable laparoscopic direct energy devices, disposable laparoscopic access devices, disposable laparoscopic internal closure devices, external fixation devices, arthroscopic powered shaver disposables, arthroscopic RF probes and GI biopsy forceps sold in the United States.
About Millennium Research Group Millennium Research Group ( www.MRG.net ), a Decision Resources Group company ( www.DecisionResourcesGroup.com ), is the global authority on medical technology market intelligence and the leading provider of strategic information to the healthcare sector. The company provides specialized industry expertise through multiclient market research, ongoing Marketrack™ projects, customer loyalty tracking, facility-level procedure forecasting, and customized solutions.
About Decision Resources Group Decision Resources Group is a cohesive portfolio of companies that offers best-in-class, high-value information, and insights on important sectors of the healthcare industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources Group at www.DecisionResourcesGroup.com.
All company, brand or product names contained in this document may be trademarks or registered trademarks of their respective holders.CONTACT: Decision Resources Group Christopher Comfort, 781-993-2597 email@example.com or Millennium Research Group Alex Jablokow, 617-599-8613 firstname.lastname@example.org KEYWORD: UNITED STATES NORTH AMERICA CANADA MASSACHUSETTS INDUSTRY KEYWORD: HEALTH BIOTECHNOLOGY MEDICAL DEVICES GENERAL HEALTH SOURCE: Millennium Research Group Copyright Business Wire 2012 PUB: 08/29/2012 08:00 AM/DISC: 08/29/2012 08:00 AM http://www.businesswire.com/news/home/20120829005027/