TORONTO–(BUSINESS
WIRE)–According to Millennium Research Group (MRG), the global authority
on medical technology market intelligence, declining demand in private
practices for diagnostic electrocardiography (ECG) devices will contribute to
slow growth in the United States market, despite the growing number of older
patients who require the use of these devices. Reasons for declining private
practice demand range from Medicare funding cuts to the impact of accountable
care organizations (ACOs).
In 2008, Medicare began cutting funding to private
cardiology practices. These cuts have had a significant impact on the annual
revenues of independent cardiologists annual revenues, with the result that a
significant number of private cardiologists in the United States have sold their
practices and moved into hospital medical centers. These clinics were major
purchasers of resting ECGs, stress ECG systems and Holter systems, which will
see a sales decline as a result. These effects are expected to continue through
2016.
The increasing popularity of ACOs in the US will have a
negative effect on the sales of stress ECG systems. The mandates to lower
overall healthcare costs and to designate procedures to the healthcare settings
best suited to providing each medical test at the lowest cost will drive
procedures to larger facilities and limit sales of stress systems.
In addition, the movement to more open interfaces means
purchasers are no longer limited to the software solution provided by the ECG
vendor. For example, companies such as Agfa Healthcare and Epiphany
Cardiography Products have been successful in converting hospitals to their
vendor-neutral ECG data management solutions. This trend will become
increasingly significant in coming years as more ECG manufacturers enter the
market with devices using the DICOM standard, providing care organizations with
more options for data management solutions for their resting and stress ECG
products.
“On top of these existing market trends will come the effect
of the American Recovery and Reinvestment Act (ARRA),” said MRG Analyst Mickel
Phung. “ARRA has introduced incentive funding for the adoption of electronic
medical records (EMRs). Adoption of ECG data management solutions has been
spurred by EMR adoption, as care facilities purchase data management solutions
to integrate with their EMR. This will further encourage the decoupling of
software from devices, allowing for their purchase from separate vendors. The
increased competition will limit selling prices.”
The overall market for diagnostic electrocardiography
devices in the US
will reach a value of nearly $366 million by 2016
Millennium Research Groups US Markets for Diagnostic
Electrocardiography Devices 2012 report includes unit, average selling price
and revenue information, along with market drivers and limiters and competitive
landscape for resting electrocardiographs (ECGs), stress ECG systems, ECG data
management solutions, and Holter systems sold in the United States.
About Millennium Research Group
Millennium Research Group (www.MRG.net), a Decision Resources Group company (www.DecisionResourcesGroup.com), is the global authority on
medical technology market intelligence and the leading provider of strategic
information to the healthcare sector. The company provides specialized industry
expertise through multiclient market research, ongoing Marketrack™ projects,
customer loyalty tracking, facility-level procedure forecasting, and customized
solutions.
About Decision Resources Group
Decision Resources Group is a cohesive portfolio of companies that offers
best-in-class, high-value information, and insights on important sectors of the
healthcare industry. Clients rely on this analysis and data to make informed
decisions. Please visit Decision Resources Group at www.DecisionResourcesGroup.com.
Posted by Sean Fenske, Editor-in-Chief, MDT
