Now that the economic sky has stopped falling (or so we hope as long as the price of oil doesn’t go completely crazy) I have taken a quick industry trend survey to see the forecast for one of our key industries, Medical Devices. Thankfully the picture wasn’t as bad as I thought, while not completely rosy, there are definite signs of green seedlings. Here are four items of interest I found indicating that baby boomers, technology advances, and government mandate technology are key drivers for growth.
- “The U.S. medical devices industry continues to grow at a brisk pace, thanks to an aging Baby Boomer population, high unmet medical needs and increased incidence of lifestyle diseases (including cardiovascular diseases, diabetes, hypertension and obesity). Neuro, Orthopedic and Aesthetic represent the fastest growing categories”. – Zachs Medical Device Industry Outlook – March 2011
- “Smartphones will change the face of the medical devices industry. Lower prices to consumers who already possess smart phones increase the addressable market for integrated products as compared to more expensive stand-alone medical devices.” – Techinsights – Five Trends That Will Shape the Mobile Industry in 2011
- Booming business in Health Information Technology (HIT)
The HIT spending boom is driven by (1) federal requirements that hospitals and physicians meet at least stage one requirements for the meaningful use of electronic health records to qualify for federal stimulus funds in 2011; (2) an aggressive timetable for massive upgrades in back-office infrastructure to comply with new medical coding requirements that will add five times the number of diagnosis and inpatient codes and require providers and payers to use the new HIPAA 5010 electronic transaction format, which will require more than 1,300 system modifications by January 2012; (3) final FDA rules that will require online reporting of adverse events related to medical devices, resulting in possible new tracking technology throughout the supply chain. – PwC – Top Health Industry Issues for 2011
- With 50% of the global population slated to be over 65 years in 2039, the Medical Devices Industry in developed nations is undergoing a strategic change with the focus of the industry moving from diagnosis to prevention. With a large aging population and the increased incidence of lifestyle and chronic diseases, innovations that reduce or eliminate hospital stays will be critical: remote healthcare, wireless enablement, minimally-invasive treatments. Increased focus on preventive care is forcing growing investments in products/solutions for home care, remote monitoring, tele-health and self monitoring. – Technology Trends 1/2011 – Emerging Trends in the Medical Devices Industry