Home Medical Equipment Rentals in the US - Industry Market Research Report

Home Medical Equipment Rentals in the US - Industry Market Research Report

  • February 2019 •
  • 31 pages •
  • Report ID: 5103539 •
  • Format: PDF

On the mend: As companies adjust to the competitive bidding program, revenue will slowly recover

Abstract

Home Medical Equipment Rentals
Since seniors aged 65 and older are insured by Medicare and represent the largest market for Home Medical Equipment Rentals industry services, Medicare payments contribute to about half of the average operator’s revenue. Although the number of senior citizens continues to grow and drive demand for industry services, Medicare payments to operators have fallen significantly due to recent regulatory changes. Regulatory changes have undermined growth during the current five-year period to 2018. The US government has been phasing in a new competitive bidding program to regulate Medicare coverage and reimbursements of home medical equipment. Although the program helps Medicare save money, it drastically reduces the price most operators in this industry receive for their services. The result is lower revenue and slashed profit margins, because rental prices decline while costs remain mainly unchanged. Moving forward, the industry is expected to continue grappling with low federal reimbursements, with operators exiting, downsizing or restructuring in response. As the companies begin to adjust to the competitive bidding program, revenue is projected to slowly recover over the five years to 2023.

This industry rents devices that are designed to aid in the diagnosis, monitoring or treatment of medical conditions to individuals in their homes. Examples include respiratory and mobility aids such as oxygen tanks, crutches and wheelchairs. The industry also rents hospital beds for home use. Operators in this industry do not rent medical equipment or beds for use outside of homes.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Loading...

We are very sorry, but an error occurred.
Please contact support@reportbuyer.com if the problem remains.