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Frost & Sullivan: Industry Push toward Quantitative Imaging Positions Computer Aided Detection and Diagnosis Adequately for Renewed Clinical Expansion
Date:4/4/2012

evailing in North America since 2008, CAD industry participants have continued to fuel their R&D efforts and expand their product portfolio. As a result, the market is slowly starting to move towards multi-modality solutions, a trend that is poised to broaden market appeal of CAD through numerous sales channels.

Reimbursement is a key element in the business model for CAD purchases. The profitability of medical imaging service lines is being challenged as reimbursement rates for procedures continue to fall at the rate of a few percentage points annually due to various Medicare reimbursement cuts and healthcare reforms. In this tough economic landscape, it becomes difficult for clinicians to justify the extra cost that CAD adds to imaging procedures, without a clear financial return.

The business case for CAD becomes more challenging within, as well as outside, mammography. As for its clinical case, it is balanced by greater clinical acceptance on one hand, and slowing technology innovation on the other.

In light of the U.S. Food and Drug Administration (FDA) draft guidance documents for CAD technology issued in October 2009, CAD vendors are facing a toughening regulatory environment and, as a result, will be slower in bringing CAD innovation to the marketplace.

"Despite imaging providers' budgets starting to free up during the latter part of 2010, CAD has not been in the best position to return to its historical double-digit growth rates," said Daher. "Current market dynamics suggest that the market will continue upon a steady, but not explosive, growth path."

A careful analysis of the clinical benefits, the impact on workflow, and the return on investment (ROI) of CAD solutions will be crucial for CAD vendors to drive more favorable purchasing decisions within a widening addressable marketplace. This market reality calls for greater customer education efforts from the vendors about CAD, as well as more effective communication
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