Insights from BCC Research

Home Users Are Catalyst for Patient Monitoring Device Market

Posted by Laurie L. Sullivan on Aug 25, 2016 10:00:00 AM

Remote patient monitoring is drawing keen interest in the market for patient monitoring devices (PMDs). According to projections by BCC Research, the PMD market will grow from nearly $16.9 billion in 2015 to almost $23.8 billion in 2020, reflecting a five-year compound annual growth rate (CAGR) of 7.1%. Last year, hospitals were the largest segment of the PMD end-user market, representing 51% of the total end-user market. But in terms of growth, home users are the fastest-growing end-user segment. The market for glucose monitoring and other devices that enable patient self-monitoring at home is expected to grow during BCC Research’s forecast period.

One recent survey found that the vast majority of healthcare professionals (84% of respondents) believe that technological innovations have finally evolved enough to produce devices that deliver similar outcomes for patients who receive treatment instructions virtually and those treated in-person. Remote patient monitoring is the healthcare technology with the greatest impact on reducing costs to organizations and maximizing return on investment, according to research by the American Society for Quality (ASQ). The second and third-ranking tools were patient engagement platforms and electronic health record systems.

Sixty-nine percent of ASQ’s respondents named remote patient monitoring as the greatest cost reducer. Respondents said organizations should embed a quality expert into every department to learn user needs before determining what type of technology is implemented. Survey participants also ranked the technologies with the most impact on patient experience and care coordination, with 71% listing incorporation of wearable sensors, remote patient monitoring, and other caregiver collaboration tools.

DEVELOPMENTS IN GLOBAL PATIENT MONITORING DEVICE MARKET, 2013 TO APRIL 2016

hlc038e_figure_5-1.pngData compiled by BCC Research for the above figure show that product launches have accounted for the bulk of activity (59%); followed by partnerships, collaborations, and agreements (24%); acquisitions (11%); and other factors including sales, geographic expansion, product recalls, etc. (6%).

REMOTE PATIENT MONITORING CAN IMPROVE QUALITY OF CARE AND REDUCE HOSPITAL READMISSIONS

Upward of $500 million is the recently released total for readmission penalties that the US government will be withholding in Medicare payments from more than half the nation’s hospitals in the coming year. Patient-generated health data is one way to help address post-discharge needs and lower readmission rates.

A provision of the Affordable Care Act requires the Centers for Medicare & Medicaid Services to reduce payments to hospitals that have an excessive number of readmissions from patients with specific conditions within 30 days after discharge. Preventing these readmissions makes the use of remote patient monitoring and the ability to leverage patient-generated health data increasingly critical. When healthcare providers are able to access real-time, real-world, actionable data, they can monitor patients more closely, provide early intervention, and hopefully prevent hospital readmissions.

In Massachusetts, Brockton Hospital has partnered with iGetBetter to leverage patient-generated health data to reduce readmissions for patients with heart failure and chronic obstructive pulmonary disorder. A pilot involving patients with heart failure aimed to reduce readmissions using connected blood pressure monitors and weight scales to feed the patient-generated health data directly into iGetBetter’s care management portal. Historically, Brockton Hospital has typically experienced a 28% readmission rate, which means that eight of the 31 patients in the pilot would have been readmitted at a cost of $27,000 per readmission. In this study, no patients were readmitted, leading to an immediate savings of $216,000.

Partners HealthCare Center for Connected Health, a not-for-profit integrated health system in Boston, is another example. It uses activity trackers, as well as connected blood pressure monitors and scales, to treat and manage chronically ill patients and those recovering from surgery. One of Partners’ programs focuses on patients with congestive heart failure to detect daily changes in weight, heart rate, movement, sleep, and blood pressure. Clinicians monitor this information and intervene, when needed, in collaboration with the patient’s physician. The result has been a reduction in heart failure–related hospital readmissions by more than 50%.

BCC RESEARCH PREDICTS THAT REMOTE PMDS WILL BE THE FASTEST-GROWING SEGMENT

In a new study, BCC Research shows that significant growth in the PMD market may be hampered by the economic slowdown, stringent government regulation of hospital operations and processes, and unstable reimbursement policies. In addition to home healthcare, PMDs are used in general healthcare and specialized disease management. The most prominent high-demand areas for PMDs include operating and emergency rooms; and cardiac, critical care (e.g., intensive care), and high-dependency units.

Multiparameter patient monitors and blood pressure monitors are the two largest market segments. The multiparameter patient monitor segment is a high-volume market that has demonstrated continuous growth, primarily driven by expanding healthcare infrastructure, increasing demand for critical care (e.g., emergency rooms, intensive care units, etc.), and broad use of multiparameter products. Among all segments, remote PMDs should grow the fastest, with a five-year CAGR of 16.6% from 2015 to 2020. The shift in the healthcare sector from a physician- to a patient-centric market is a key driver.

A decrease in the physical size of monitoring devices; enhanced utility, performance and sensitivity, usability and portability of devices; and increasing availability of remote/wireless patient monitoring equipment and systems are fueling market growth. Other key drivers include continuous product development and technology advancements, expanding healthcare awareness, growing infrastructure, and increasing popularity of remote and at-home patient monitoring.

“Key factors restraining the market’s growth include the high level of competition creating price pressure and increasing market challenges, as well as regulatory and reimbursement issues, and challenges in technology and adoption of new products,” says BCC Research analyst Himani Singhi Wadhwa. “Consumer price sensitivity and demand for lower prices also have an impact on growing market competition. These are contributing to lower average selling prices and relatively lower-profit margins for manufacturers.”

BCC Research’s recent study, Patient Monitoring Devices: Global Markets, measures, forecasts, and segments the PMD market on the basis of products and end-users. Analyses of global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2020, are provided.

Topics: Life Sciences, Healthcare