It’s a tough time to be a DME supplier. Radical cuts to the Medicare fee schedule are taking the industry into uncharted waters. The unknown is intimidating, but the reason we keep fighting is that there is a future for DME – not a shaky one but a solid one. Despite current challenges, the demand for DME is only going to increase.
A September Global Home Healthcare report released by Zion Market Research on the global home healthcare market analyzed services that are largely attributable to DME including diagnostics and monitoring devices, therapeutic home healthcare devices, mobility assist devices, medical supplies, respiratory therapy, and infusion therapy. The study also contemplated non-DME services like unskilled home healthcare services, rehabilitation, telehealth and telemedicine. The report anticipates that the home healthcare industry will be worth $391.41 billion by 2021, growing at a compound annual growth rate (CAGR) of 9.4%. It estimates the current value at $228.9 billon. The report acknowledges changing reimbursement policies and limited insurance coverage are immediate challenges for the industry; however, long-term growth is forecasted despite these present stumbling blocks.
Furthermore, a more focused Durable Medical Equipment Market Analysis report published by Grand View Research in December of last year indicates that the global durable medical equipment market is expected to reach $242.1 billion by 2024, growing at a CAGR of 6.2%. In 2015, it was valued at $140.9 billion.
A September Global Home Healthcare report released by Zion Market Research on the global home healthcare market analyzed services that are largely attributable to DME including diagnostics and monitoring devices, therapeutic home healthcare devices, mobility assist devices, medical supplies, respiratory therapy, and infusion therapy. The study also contemplated non-DME services like unskilled home healthcare services, rehabilitation, telehealth and telemedicine. The report anticipates that the home healthcare industry will be worth $391.41 billion by 2021, growing at a compound annual growth rate (CAGR) of 9.4%. It estimates the current value at $228.9 billon. The report acknowledges changing reimbursement policies and limited insurance coverage are immediate challenges for the industry; however, long-term growth is forecasted despite these present stumbling blocks.
Furthermore, a more focused Durable Medical Equipment Market Analysis report published by Grand View Research in December of last year indicates that the global durable medical equipment market is expected to reach $242.1 billion by 2024, growing at a CAGR of 6.2%. In 2015, it was valued at $140.9 billion.
Both reports attribute growth to an increasing geriatric population and an increase in chronic conditions. One of the most notable drivers of future demand is the emphasis on reduced hospital stays for patients, which can only be accomplished through focusing on home care and the availability of specialized, long-term care equipment. Home care is an undisputed, less-costly alternative to hospital care and this will be a key contributing factor to growth over the next eight years per the Durable Medical Equipment Market Analysis report. Both reports found North America to be the largest regional segment in the global market in 2015. And the United States, in particular, is cited in the Home Healthcare report as a major revenue contributor.
With this reminder, the fight to protect DME is a worthy one. Make your voice heard! Take action – NOW – Congress needs to hear from you. Remember, if we don’t get substantive relief from Medicare cuts before December, we have to start all over. If you’re unsure of who to contact, look up your senators here and your representatives here. You should also consider contacting your local media and news affiliates to ensure the message is taken to print and the airways.
Don’t give up. Take comfort in the long term prospects for our industry reiterated by these forecasts. In the meantime, get low, hunker down and steer the course for your company’s success. The way forward may be different that prior trajectories, but there is a way forward. Join Andrea Stark as she expounds on the question that is on everyone’s mind: “Is Anything Profitable Anymore?” This event is co-hosted by HME News and scheduled for Oct. 6 at 2 p.m. Eastern. Register today.
With this reminder, the fight to protect DME is a worthy one. Make your voice heard! Take action – NOW – Congress needs to hear from you. Remember, if we don’t get substantive relief from Medicare cuts before December, we have to start all over. If you’re unsure of who to contact, look up your senators here and your representatives here. You should also consider contacting your local media and news affiliates to ensure the message is taken to print and the airways.
Don’t give up. Take comfort in the long term prospects for our industry reiterated by these forecasts. In the meantime, get low, hunker down and steer the course for your company’s success. The way forward may be different that prior trajectories, but there is a way forward. Join Andrea Stark as she expounds on the question that is on everyone’s mind: “Is Anything Profitable Anymore?” This event is co-hosted by HME News and scheduled for Oct. 6 at 2 p.m. Eastern. Register today.
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