New York, NY (PRWEB) August 25, 2014 -- Since the FDA approved Intuitive Surgical's da Vinci in 2000, the Robotic Surgery Equipment Manufacturing industry has skyrocketed in line with robotic technologies becoming a staple in the US healthcare system. For example, according to 2010 data from the Wall Street Journal, 1,500 hospitals have installed da Vinci systems since 2000 (latest data available). According to IBISWorld Industry Analyst Sarah Turk, “healthcare providers and patients alike have favored robot-assisted surgery due to quicker patient recovery times, less blood loss and less pain.” Furthermore, robust demand from hospitals, particularly larger hospitals and smaller, critical-access hospitals, has bolstered industry revenue over the five-year period. For instance, critical-access hospitals have been able to secure reimbursements by Medicare, which have considered robotic surgery equipment as a depreciable capital expense, with reimbursements being determined by the share of patients that are Medicare beneficiaries.
“Overall, many hospitals have implemented robotic surgery equipment to attract surgeons and patients, due to the use of cutting edge technologies also serving as a marketing tool,” says Turk. Additionally, many academic institutions have purchased robotic equipment to train surgeons in residency, due to surgeons typically requiring experience with 20 to 30 robot-assisted procedures. During the five years to 2014, industry revenue is anticipated to skyrocket because of strong demand for robotic surgery equipment during complex surgical procedures that may be hard to navigate without the use of 3D imaging, which provides real time feedback to surgeons. Profit is expected to rise in 2014, due to many operators realizing cost synergies related to having more rural and urban hospitals using robotic technologies, which streamlines costs for providing logistics and other services.
During the five years to 2019, industry revenue is forecast to grow. However, more studies will examine the efficiency and cost effectiveness of robot-assisted surgery across clinical ailments to determine if robot-assisted surgeries improve patient outcomes. Due to this trend, Medicare and Medicaid will likely cut reimbursement rates for robot-assisted surgeries that do not demonstrate high rates of cost effectiveness, thus hampering industry revenue growth.
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IBISWorld industry Report Key Topics
The Robotic Surgery Equipment Manufacturing industry manufactures computer-controlled mechanisms that support the treatment of illness and injuries. Many manufacturers also provide installation and support services for robotics, which are included in revenue. The industry excludes patient-oriented services and teaching workshops.
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Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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