Sleep providers report volume increases, price declines

ResMed, Philips flow generators are neck and neck
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Tuesday, June 20, 2017

NEW YORK – Sleep patient volume grew 4.4% in the last 12 months and is expected to grow 5.1% in the next 12 months, according to respondents to the second quarter 2017 HME Sleep and Oxygen Survey conducted by Needham and HME News.

That’s up significantly from 0.8% and 2.5%, respectively, in a prior survey.

Flow generator prices declined 1.8% in the last 12 months (vs. a decline of 3.8% in a prior survey), and mask prices declined 3.1% (vs. 4.4%), according to respondents.

“This represents a reversal of the worsening price declines seen in our prior two surveys that followed the 2016 Medicare reimbursement cuts and seems to indicate that pricing declines are returning to the historical range,” Mike Matson of Needham wrote in his report highlights.

Respondents indicated that interest in travel CPAPs is on the rise: They reported 5.5% of their sleep patients purchased travel CPAPs in the last 12 months and 10.6% are expected to purchase the devices in the next 12 months.

ResMed’s and Philips Respironics’ flow generators were rated equal by respondents, while ResMed’s masks were rated highest, with Respironics’ very close behind, according to the survey.

Respondents expect ResMed’s share of flow generator purchases to decrease 2.3% and its share of mask purchases to decrease 3.6% in the next 12 months. They expect Respironics’ share of flow generator purchases to decrease 1.1% and its share of mask purchases to increase 2%.

On the oxygen side of the market, respondents expect portable oxygen concentrators to increase from 16.6% of the ambulatory oxygen market to 21.4% over the next 12 months, which implies 29% growth, down from 45% in a prior survey. They rated a private label POC from Inogen highest.