PUBLISHER: The Business Research Company | PRODUCT CODE: 1455276
PUBLISHER: The Business Research Company | PRODUCT CODE: 1455276
Medical device reimbursement is the procedure through which healthcare providers receive payment from insurance plans or payers for supplying patients with medically necessary devices. This entails assessing the device's cost, evaluating its efficacy, and engaging in negotiations with payers to secure insurance coverage.
The primary contributors to medical device reimbursement are public and private entities. Public payers refer to government-funded organizations or entities tasked with financing and overseeing healthcare services for a designated population or country. Hospitals, outpatient facilities, and various healthcare settings submit claims for both underpaid and fully reimbursed services.
The medical device reimbursement market research report is one of a series of new reports from The Business Research Company that provides medical device reimbursement market statistics, including medical device reimbursement industry global market size, regional shares, competitors with a medical device reimbursement market share, detailed medical device reimbursement market segments, market trends and opportunities, and any further data you may need to thrive in the medical device reimbursement industry. This medical device reimbursement market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The medical devices reimbursement market size has grown strongly in recent years. It will grow from $549.53 billion in 2023 to $602.26 billion in 2024 at a compound annual growth rate (CAGR) of 9.6%. The expansion observed in the historical period can be ascribed to several factors, including government healthcare policies, a rising burden of diseases, enhanced patient access and affordability, efforts to contain healthcare costs, collaborative initiatives between providers and payers, and an escalating focus on regulatory compliance.
The medical devices reimbursement market size is expected to see strong growth in the next few years. It will grow to $846.62 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The anticipated growth in the forecast period is linked to various factors, such as the adoption of value-based healthcare models, increasing demand for precision medicine, global health security initiatives, a heightened emphasis on patient-centric care, collaborative efforts with health technology assessment (HTA), and substantial government investments in healthcare. Noteworthy trends expected in the forecast period encompass the integration of digital health technologies, collaborative agreements between manufacturers and payers, a focus on real-world evidence and health economics data, the adoption of pay-for-performance models, the implementation of value assessment frameworks, and advancements in risk-sharing agreements.
The increasing demand for minimally invasive surgeries is anticipated to be a key driver for the growth of the medical device reimbursement market in the foreseeable future. Minimally Invasive Surgery (MIS) involves specialized techniques and instruments that enable surgical procedures with minimal disruption to the patient's body, in contrast to traditional open surgery. The advantages of medical device reimbursement in the context of minimally invasive surgery include enhanced patient access to advanced procedures and cost savings due to shorter hospital stays. As reported by Private Clinic Group Limited, a UK-based medical organization, in 2021, plastic surgeons globally performed over 12.8 million surgical procedures and 17.5 million non-surgical treatments. This marked a substantial 19.3% increase in procedures performed by plastic surgeons compared to the previous year. Consequently, the rising demand for minimally invasive surgeries is a significant factor propelling the growth of the medical device reimbursement market.
The increasing prevalence of chronic diseases is expected to further drive the expansion of the medical device reimbursement market. Chronic diseases, characterized by their long-term nature and typically manageable but incurable status, necessitate effective medical device reimbursement for accessibility, fostering innovation, and improving patient outcomes while mitigating economic burdens. According to the National Library of Medicine, a US-based medical library, an estimated 99.5% of the population is projected to have a chronic illness by 2050, increasing from 71.522 million in 2020 to 142.66 million. Concurrently, the number of individuals with multimorbidity is anticipated to rise from 7.8304 million in 2020 to 14.968 million in 2050, reflecting a substantial 91.16% increase. Therefore, the growing prevalence of chronic diseases stands as a driving force behind the sustained growth of the medical device reimbursement market.
The high cost of medical devices, coupled with insufficient claims reimbursement, poses a potential hindrance to the growth of the medical device reimbursement market during the forecast period. The adoption of innovative medical devices in hospitals faces challenges due to these elevated costs. For instance, as reported by AdvaMed, a US-based medical technology association representing device, diagnostics, and digital technology companies, the average annual increase in medical device prices in June 2021 is a mere 0.4%, contrasting sharply with the 2.4% rise in the Consumer Price Index (CPI). Consequently, the substantial costs associated with medical devices are impeding the expansion of the medical device reimbursement market.
Major players in the medical device reimbursement market are strategically focusing on technological advancements, exemplified by the development of electronic medical records (EMRs), to maintain their market positions. Electronic medical records serve as digital versions of a patient's paper medical charts and play a crucial role in supporting reimbursement claims by ensuring the medical necessity and appropriate utilization of devices. For instance, in April 2023, Wemex Corporation, a Japan-based IT solutions company, introduced the medicom-HRf hybrid cloud, an integrated EMR system utilizing cloud technology to facilitate location-free operations for clinics. Hybrid cloud solutions such as Medicom-HRf seamlessly integrate various data sources, including patient records, medical billing, insurance claims, and regulatory information. This integration offers a comprehensive view of a patient's treatment and billing history, crucial for accurate reimbursement. Medical device companies can leverage such systems to access up-to-date information on insurance coverage, reimbursement rates, and claim status.
In January 2022, Centene Corporation, a US-based managed care company, completed the acquisition of Magellan Health Inc. for an undisclosed amount. This strategic move enables Centene Corporation to deliver innovative and integrated healthcare solutions, resulting in improved health outcomes at lower costs, particularly for complex and high-cost health treatments. Magellan Health Inc., as a managed care company, brings expertise in offering solutions for health plans and reimbursement management, covering a spectrum of devices and healthcare services within the healthcare landscape.
Major companies operating in the medical devices reimbursement market report are UnitedHealth Group, CVS Health Corporation, Cigna Corporation, Anthem Insurance Companies Inc., Axa S.A., Assicurazioni Generali SpA, Humana Inc., Reliance Nippon Life Insurance Company Limited, MetLife Services and Solutions LLC, Aetna Inc., New York Life Insurance, Nationwide Mutual Insurance Company, American International Group Inc., Allstate Insurance Company, BNP Paribas S.A., Zurich Insurance Group Ltd., Aegon Life Insurance Company, Aviva PLC, WellCare Health Plans Inc., Pacific Life Insurance Company, Allianz SE, Bright House Financial Inc., Globe Life Inc., Munich Re Group, Symetra Life Insurance Company, Sumitomo Life Insurance Company, NAMSA Inc., Colonial Penn Life Insurance Company, Musculoskeletal Clinical Regulatory Advisers LLC, Assurity Life Insurance
North America was the largest region in the medical devices reimbursement market in 2023. The regions covered in the medical devices reimbursement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the medical devices reimbursement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The medical devices reimbursement market includes revenues earned by entities by providing services such as coding and billing services, claims processing, coverage determination, benefit verification, coding and billing training, and pre-authorization and pre-certification. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Medical Devices Reimbursement Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on medical devices reimbursement market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for medical devices reimbursement ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The medical devices reimbursement market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.