by Medical devices are an integral part of modern healthcare that helps enhance patient outcomes through minimally invasive treatment and diagnosis. Key medical devices such as MRI scanners, CT scanners, ultrasound machines, pacemakers, orthopedic implants and wheelchairs help practitioners deliver improved patient care effectively. However, their purchase involves significant upfront costs for various stakeholders such as hospitals, clinics and end-users. Reimbursement services play a crucial role in covering part or whole of the device costs from government agencies or private insurers as per the terms of health insurance plans. This provides the necessary funds for continuous purchase and upgrade of life-saving medical technologies.
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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the medical devices reimbursement market is the rising preference for value-based reimbursement models. Governments and private payers across countries are shifting from fee-for-service payment models to value-based arrangements that tie reimbursement amounts to clinical outcomes and quality of care delivered. This encourages healthcare providers to choose high-quality medical devices that improve patient outcomes while containing overall treatment costs through lower readmission rates and faster recovery times. Over the forecast period, more stakeholders in the medical devices reimbursement market are expected to adopt pay-for-performance and bundled payment systems.
Porter’s Analysis
Threat of new entrants: The medical devices reimbursement market requires high capital investments and strict regulatory compliance which pose significant entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power as there exist a large number of established medical devices manufacturers and rising healthcare expenditure increases their alternatives.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the presence of a large number of component suppliers and the undifferentiated nature of components.
Threat of new substitutes: New substitute threats are low as medical devices have limited substitutes for disease treatment and management.
Competitive rivalry: The market is highly competitive due to the presence of several large players operating globally.
Key Takeaways
The Global Medical Devices Reimbursement Market Demand is expected to witness high growth over the forecast period.
Regional analysis: North America is anticipated to dominate the market, owing to rising medical spending and reimbursement coverage in the US. Asia Pacific is expected to grow at the fastest pace, supported by increasing healthcare expenditure and expanding medical tourism in countries such as India and China.
Key players: Key players operating in the medical devices reimbursement market are BNP Paribas, CVS Health, Aviva, Allianz, Humana, Cigna, Aetna, Wellcare Health Plans Inc., UnitedHealth Group Inc., and Nippon Life Insurance Company, among others. Key players are focusing on collaboration with hospitals and increasing member enrollment to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
