Market growth to exceed 12% through 2013, according to Millennium Research Group
WALTHAM, Mass., May 4 /PRNewswire/ -- According to Millennium Research Group's (MRG's) US Markets for Reprocessed Devices 2009, hospitals are under significant pressure to lower spending due to the global economic crisis and the rising cost of health care within the US. Health care providers are therefore increasingly purchasing lower-priced products, such as reprocessed devices, which cost approximately 40 to 60% less than original equipment manufactured goods. As a result, market growth for reprocessed devices will exceed 12% annually through 2013.
According to the American Hospital Association, US hospitals reported a loss in the third quarter of 2008 and therefore, many institutions are laying off staff members and reconsidering or postponing renovations or expansion. The financial outlook is also poor for patients who will lose their jobs and health insurance as the economic crisis persists. Consequently, hospitals are under significant pressure to reduce spending. The use of reprocessed devices will increase through 2013 as more hospitals, group purchasing organizations, and integrated delivery networks embrace reprocessing as an effective initiative for responding to declining economic conditions.
Coupled with concerns over rising health care costs are worries about the environment and the excessive accumulation of medical waste. For example, the California-based health care giant Kaiser Permanente began using reprocessed devices over 10 years ago. In 2007, Kaiser Permanente was able to reduce its device costs by over $3 million through the use of reprocessed devices. Positive experiences with using reprocessed devices such as this will prompt other organizations to follow suit over the next five years.
"Regulatory and legislative victories for reprocessed devices will also drive this market," says Tiffanie Demone, Senior Analyst at MRG. "After reviewing eight years' worth of FDA data, the Government Accountability Office released a report in January 2008 concluding that there is no evidence to suggest that reprocessed single-use devices create an elevated health risk for patients. If effectively followed, the FDA-approved method of reprocessing allows for only a one-in-a-million chance of a contaminant surviving the process."
MRG's US Markets for Reprocessed Devices 2009 report provides coverage of key companies including Ascent Healthcare Solutions, Boston Scientific, ClearMedical, Covidien, ETHICON, Hygia Health Services, MEDISISS, ReNu Medical, SterilMed, Stryker Endoscopy, SureTek Medical, Synthes, and more.
About Millennium Research Group
Millennium Research Group (www.MRG.net), a Decision Resources, Inc. company (www.DecisionResourcesInc.com), is the global authority on medical technology market intelligence and the leading provider of strategic information to the health care sector. The company provides specialized industry expertise through syndicated reports, ongoing Marketrack(TM) projects, customer loyalty tracking, facility-level procedure forecasting, and customized solutions.
About Decision Resources, Inc.
Decision Resources, Inc. is a cohesive portfolio of companies that offers best-in-class, high-value information, and insights on important sectors of the health care industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources, Inc. at www.DecisionResourcesInc.com.
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|SOURCE Millennium Research Group|
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