Price Competition and Increased Use of Reprocessed and Refurbished Devices to Limit Growth in Us Arthroscopy Market

Market to Grow at Moderate Four Percent per Year Through 2016, According to Millennium Research Group

TORONTO--(BUSINESS WIRE)--According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the United States arthroscopy market will grow moderately to reach a value of more than $750 million by 2016. While the number of arthroscopy procedures performed will increase over this period, downward pressures on prices, which include increased reuse and refurbishing as well as reimbursement controls, will limit revenue growth.

“The poor economy and changes in health insurance regulations will have a negative effect on the budgets of the ambulatory care centers where the majority of arthroscopy procedures are performed”

Demand for arthroscopy procedures, including knee, shoulder, small-joint and hip procedures, will continue to grow steadily due to the numerous benefits of minimally-invasive surgeries. Arthroscopic procedures show faster recovery times and lower complication rates when compared to open surgery and can also be performed on an outpatient basis.

While procedure volumes will increase, there will also be a significant downward pressure on selling prices of arthroscopic devices. The mature and commoditized arthroscopy market has seen little technical innovation in recent years. As a result, products are relatively undifferentiated and competition is largely on price. Additionally, increasing rates of reprocessing of single-use devices and refurbishing of reusable devices will exert further downward pressure on selling prices. While physicians are wary of using reprocessed products, facilities have a significant incentive to reduce costs.

“The poor economy and changes in health insurance regulations will have a negative effect on the budgets of the ambulatory care centers where the majority of arthroscopy procedures are performed,” said MRG Analyst Canny Ho. “Many of these procedures are considered elective and patients aren’t willing to pay the out-of-pocket costs associated with treatment. This factor, in combination with product bundling and the challenge of remaining competitive against reprocessed and refurbished devices, will continue to drive selling prices down in most segments of the market.”

Smith & Nephew has the largest share of the arthroscopy device market, but has strong competition from ConMed Linvatec, Stryker and Arthrocare.

Millennium Research Group’s US Markets for Arthroscopy Devices 2012 report includes procedure, unit, average selling price and revenue information, along with market drivers and limiters and competitive landscape for powered shaver disposables, radiofrequency probes, fluid management disposables, arthroscopes and hand instruments in the United States.

About Millennium Research Group

Millennium Research Group (www.MRG.net), a Decision Resources Group company (www.DecisionResourcesGroup.com), is the global authority on medical technology market intelligence and the leading provider of strategic information to the healthcare sector. The company provides specialized industry expertise through multiclient market research, ongoing Marketrack™ projects, customer loyalty tracking, facility-level procedure forecasting, and customized solutions.

About Decision Resources Group

Decision Resources Group is a cohesive portfolio of companies that offers best-in-class, high-value information, and insights on important sectors of the healthcare industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources Group at www.DecisionResourcesGroup.com.

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