Survey: Respiratory providers report stable market

Friday, September 25, 2015

NEW YORK – The market for sleep therapy devices and supplies isn’t skyrocketing, but it’s not nosediving, either, according to a survey conducted by investment banking firm Needham & Co. and HME News.

Nearly across the board, the results of the survey paint a picture of a stable market with modest gains, including a reported, on average, 6.7% increase in patient volume for the first quarter of 2015 compared to 5.2% for the fourth quarter of 2014.

The 256 respondents to the survey also reported modest gains in mask utilization (2.12 masks per year for the past 12 months and 2.16 masks per year projected for the next 12 months) and modest decreases in pricing (on average, 2.2% for Fisher & Paykel, 2.8% for ResMed and 3.7% for Philips Respironics).

“Of those that won Round 2 contracts under Medicare competitive bidding, the most popular strategy to offset reimbursement declines is to negotiate lower prices with existing CPAP manufacturers,” wrote Mike Matson, a senior research analyst for Needham & Co., in his report on the study. “The respondents indicated that all three major manufacturers had reduced prices in the last three months in response to bidding.”

Respondents to the survey also reported that they expect their use of oxygen tanks to decrease 5.8% in the next 12 months (representing 45.7% of the market), while their use of transfilling devices and portable oxygen concentrators to increase 4.2% and 3.3%, respectively (representing 27.8% and 16.6%, respectively, of the market).

“If this proves accurate, it implies that POC sales to HMEs would increase by more than 24% over the next 12 months,” Matson wrote.