HME revenues, profits to decline, report says
NEW YORK – The HME industry has a lot going for it, including a rapidly aging population, but that may not be enough to offset increased Medicare and Medicaid regulations, according to a new report from IBISWorld. Industry revenue is expected to decline at an annualized rate of 2.5% from 2009 to 2014, bringing down total revenue to $5.6 billion, the research firm says. Profit is expected to fall to 4.2% of revenue in 2014, down from 11.6% of revenue in 2009, it says. The biggest regulation that the HME industry has to contend with: competitive bidding, according to the report. “Moving forward, industry revenue is expected to continue declining due to federally mandated low rental prices, although the industry itself remains mature,” stated analyst Amal Ahmad in a press release.