The aging population will keep demand for medical testing and related equipment steady
New York, NY (PRWEB) November 13, 2014
Over the past five years, the http:// Medical Equipment Rental industry has exhibited growth, thanks to the rapid advent of high-cost equipment. As many healthcare providers have grappled with cuts in Medicare and Medicaid reimbursements, this trend has facilitated the shift toward cost-saving strategies. In particular, many healthcare providers have rented rather than purchased medical equipment, because they can access up-to-date technologies at a lower cost. For instance, many healthcare providers, such as hospitals, have rented ultrasound, remote patient monitoring and X-ray equipment, as well as other medical equipment that is prone to becoming obsolete quickly. Furthermore, the regulatory environment has promoted demand for medical equipment rentals. For example, Medicare primarily reimburses medically necessary durable medical equipment (DME) on a rental basis, with Medicare covering 80.0% of the Medicare-approved amount each month.
According to IBISWorld Industry Analyst Sarah Turk, “DMEs include continuous passive motion machines, home oxygen equipment and oxygen therapy, among others.” However, medical equipment rental companies that primarily provide home care rentals are excluded from the industry. Nevertheless, as DME expenditures are anticipated to rise during the five years to 2014, according to data from the Center for Medicare and Medicaid Services. This trend reflects the proliferation of high-tech medical equipment. In response, many downstream markets have rented rather than purchased medical equipment to cut costs. During the five years to 2014, industry revenue is expected to grow. Furthermore, profit is anticipated to slightly increase in 2014, due to many medical equipment rental companies increasingly providing comprehensive solutions and value-added services for healthcare providers, such as equipment training and support services.
During the five years to 2019, industry revenue is forecast to grow. “In response to the rapidly growing obese population, many healthcare providers will rent bariatric equipment, thus stimulating industry revenue growth,” says Turk. In addition, as many healthcare providers move away from volume-based models to value (e.g. providing favorable patient outcomes), this trend will support demand for rental equipment that can assist providers with superior clinical outcomes.
For more information, visit IBISWorld’s Medical Equipment Rental in the US industry report page.
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IBISWorld industry Report Key Topics
The Medical Equipment Rental industry rents and lease medical equipment to institutional customers. This industry specifically excludes companies that primarily rent and lease medical equipment to home care customers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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