by Large paragraph: Medical devices play a pivotal role in diagnosis, prevention, monitoring and treatment of diseases. Devices ranging from surgical instruments, dental tools, imaging equipment, diagnostic kits and monitoring devices help improve patient outcomes. The need for quality healthcare along with technological advancements in medical devices has boosted their demand worldwide. However, their high costs often pose affordability challenges. Medical devices reimbursement programs help ease such costs by negotiating prices with manufacturers and offering insurance coverage.
The global Medical Devices Reimbursement Market is estimated to be valued at US$ 543.4 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Consolidation among key players in the medical devices reimbursement market has been a major trend over the past few years. Large insurance companies have acquired smaller players to expand their service offerings and geographic presence. For instance, CVS Health acquired Aetna in 2018 to diversify into healthcare provision along with insurance. Similarly, Humana acquired Kindred Healthcare to bolster its offerings in home healthcare services. Such mergers and acquisitions allow companies to achieve economies of scale, deliver integrated solutions, and negotiate better rates with medical device manufacturers on behalf of larger customer bases.
SWOT Analysis
Strength: Medical devices reimbursement provides financial aid and reduces out-of-pocket expenses for procedures and treatments involving high-cost medical devices. This encourages more patients to opt for advanced medical treatment.
Weakness: Reimbursement policies differ across regions and countries leading to complexity. Processing reimbursement claims is also time consuming and labor intensive.
Opportunity: Growing disease prevalence and rising demand for innovative medical devices present an opportunity for the market. Expanding health insurance coverage in developing nations also opens up new growth avenues.
Threats: Frequent changes in reimbursement guidelines and complex regulations pose a major challenge. Economic slowdowns can impact insurance budgets allotted for medical device reimbursements.
Key Takeaways
The global medical devices reimbursement market Size is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis: North America currently dominates the market and is expected to maintain its leading position throughout the forecast period. This can be attributed to favorable reimbursement policies and greater acceptance of new medical technologies in the region. The Asia Pacific market is anticipated to emerge as the fastest growing regional market owing to rapid economic development, rising healthcare expenditure, and improving access to health insurance in countries such as China, India and South Korea.
Key players: Key players operating in the medical devices reimbursement market include BNP Paribas, CVS Health, Aviva, Allianz, Humana, Cigna, Aetna, Wellcare Health Plans Inc., UnitedHealth Group Inc., and Nippon Life Insurance Company, among others. These players are focusing on strategies such as new product launches, partnerships, and mergers & acquisitions to strengthen their market position. For instance, in February 2023, Aetna partnered with OrthoClinical Diagnostics to streamline laboratory test reimbursement for joint and spine surgeries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
