Decisions Resources Group reported on eight big trends impacting the spinal implant market, which is expected to reach $7.1 billion over the next eight years.
Here are eight big trends impacting the spinal implant market over the next few years:
1. Population changes — the aging population is up and a rising obesity rate means more people will need spine care in the future.
2. Merger and acquisition activity is on the rise in spine and orthopedic device markets. "Partnerships and takeovers are more rampant, partially owing to the lingering tough economic climate in the United States, making consolidation among other factors attractive. The recent acquisition of Biomet by Zimmer exemplifies this trend," Decisions Resource Group Analyst Rene Azeez.
3. Increasing use of non-fusion devices will be primary market drivers, but future regulations could shape market trends as well.
4. The Patient Protection and Affordable Care Act — spine implant procedures were up in the last quarter of 2013 due to uncertainties with the future of healthcare coverage; patients wanted to be sure they had access to procedures before the end of the year that may have otherwise been scheduled in 2014. Ultimately, analysts estimated the ACA would have a positive impact on the spine implant market because the insured population will grow.
5. Demand for minimally invasive spine procedures is up, as patients are more educated about the types of procedures available.
6. Outpatient spine surgery at ambulatory surgery centers is also becoming a popular trend. Even more complex procedures like anterior cervical discectomy and fusion can go to the ASC setting, which typically has a lower infection rate and much lower cost than hospitals. The researchers predict an uptick in spine procedures at ASCs.
7. Reimbursement for spinal implants is more difficult in the United States than it was in the past as payers seek to control costs. Spinal implants are typically expensive and payers often feel they are over-performed; as a result, payers are demanding more conservative treatment and paperwork submitted with surgical claims than ever before.
8. The market is becoming more competitive and companies are looking for ways to differentiate themselves. "We are seeing a heavy focus on manufacturers developing technologies that will allow them to change their site of service or differentiate themselves in some way," said Mr. Azeez. "Recent strategic investments into arenas such as expanding manufacturing capabilities or creating products with unique material composition illustrate the importance of innovation in today's marketplace."
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