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Medical Waste Disposal Services Procurement Research Report Now Available from IBISWorld
Date:10/20/2013

Los Angeles, CA (PRWEB) October 20, 2013

Medical waste disposal services have a buyer power score of 3.0 out of 5. This score reflects limited buyer power and slowly increasing prices for disposal services. Stringent regulations make these specialized waste management services necessary for many buyers; medical waste must be disposed of following strict guidelines, and processing medical waste can be too expensive for many buyers to perform in-house. “Therefore, outsourcing these services is required to meet standards regarding the disposal of regulated medical waste”, according to IBISWorld procurement analyst Erich Abellera. The highly specialized nature of these services also restricts the availability of substitutes for buyers, limiting their negotiation power. Service providers thus experience consistently high demand and strong pricing power.

Average prices have increased steadily over the past three years, and this trend is expected to continue. As healthcare reform is implemented over the coming years, access to healthcare insurance is expected to increase significantly. Increased insurance coverage will lead to greater use of healthcare services, which will in turn result in higher volumes of medical waste. Thus, healthcare reform is expected to ultimately boost demand for medical waste disposal services, pushing prices up further over the next three years. “Buyers can increase their negotiation power by setting multi-year agreements with medical waste disposal service providers”, says Abellera. Multi-year contracts will also allow buyers to lock in prices before they rise in the coming years. However, some contracts allow suppliers to pass rising input costs onto buyers. Buyers can negotiate limits to these price increases to
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