BURLINGTON, Mass., Oct. 15, 2014 /PRNewswire/ -- Decision Resources Group finds that the market for reprocessed devices in the United States will undergo robust growth, reaching a value of over $680 million by 2023. This will be driven by increasingly budget-conscious facilities in the U.S., which can recognize substantial cost savings by using reprocessed products.
Other key findings from Decision Resources Group's coverage of the U.S. reprocessed device market:
- Cost savings: In 2014, U.S. healthcare facilities saved approximately $300 million in supply costs as a result of reprocessing cardiovascular, laparoscopic, orthopedic/arthroscopic and gastrointestinal devices. Currently, over 70 percent of hospitals have agreements with third-party reprocessing companies.
- Lower adoption among smaller hospitals: Reprocessing has historically been less common in smaller hospitals compared to larger ones. These facilities are typically not able to purchase in bulk, and therefore have less negotiating power when setting up contracts with original equipment manufacturers (OEMs). As a result, many OEMs implement "no reprocessing" clauses in their contracts with smaller facilities.
- GPOs and more acceptance among OEMs: This is, however, likely to change going forward as group purchasing organizations (GPOs) enable more smaller facilities to participate in reprocessing, and as OEMs become more accepting of the practice. This trend is evidenced by the fact that the two largest reprocessing companies—SterilMed and Stryker Sustainability Solutions—are owned by OEMs Ethicon and Stryker.
Comments from Decision Resources Group Senior Analyst Manya Aggarwal:
- "The reprocessed electrophysiology (EP) diagnostic catheter and direct energy device markets will undergo the strongest growth through 2023. In general, devices that are associated with rapid growth in the OEM markets, do not carry substantial safety risks and are generally bought in large volumes are the most attractive markets for reprocessing companies. The price difference between OEM and reprocessed devices is also quite large in these markets."
- "The reprocessed cardiovascular device market, which includes EP diagnostic catheters as well as compression sleeves, continues to generate the majority of revenues. The compression sleeve market is the most competitive because these devices are so easy to reprocess, resulting in a number of smaller competitors, such as MEDISISS, offering these products."
- Manya Aggarwal has written a Medtech 360 report on this subject entitled US Markets for Reprocessed Devices 2015.
- Decision Resources Group's Marketrack, which provides market share data by brand for the compression sleeve market, can be found here.
About Decision Resources Group
Decision Resources Group offers best-in-class, high-value information and insights on critical issues within the healthcare industry. Clients rely on this analysis and data to make informed decisions. Find out more at www.DecisionResourcesGroup.com.
All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.
For more information, contact:
Decision Resources Group
SOURCE Decision Resources Group