Medical Devices Reimbursement Market - By Payer (Public, Private), By Healthcare Setting (Hospitals, Outpatient Facilities) & Forecast, 2023 – 2032

Medical Devices Reimbursement Market Size

Medical Devices Reimbursement Market size was valued at over USD 482.6 billion in 2022 and is poised to witness 7.3% CAGR between 2023 and 2032. Growing healthcare expenditure, increasing regulatory support, rising healthcare awareness, aging population and prevalence of chronic diseases are among the key factors expected to fuel the market growth over the analysis period.
 

Regulatory bodies worldwide are recognizing the importance of medical devices reimbursement and implementing favorable policies. Governments and regulatory agencies are working towards creating a supportive reimbursement environment, streamlining processes, and providing clearer guidelines for device reimbursement. Increasing healthcare expenditure globally, particularly in emerging economies, is a significant driver for the medical devices reimbursement industry.
 

Moreover, cost containment is a significant concern for healthcare systems worldwide. Medical devices reimbursement can help in achieving cost-effective healthcare by enabling early diagnosis, reducing hospital stays, and preventing complications. As a result, reimbursement policies that promote cost containment are driving market growth.
 

Medical devices reimbursement is the process by which healthcare providers, such as hospitals, clinics, and physicians, receive payment or compensation for the use of medical devices in patient care. It involves the reimbursement of costs associated with the acquisition, maintenance, and utilization of medical devices used in diagnosing, monitoring, or treating various medical conditions.
 

Lack of clear guidelines and inconsistent coverage, stringent reimbursement policies, budgetary constraints, and reimbursement coding and documentation challenges are some of the prominent pointers that are impeding the market growth. Strict and complex reimbursement policies can pose challenges for medical device manufacturers and healthcare providers. Lengthy approval processes, stringent eligibility criteria, and limited coverage for certain devices can hinder market growth and restrict patient access to innovative technologies. Additionally, regulatory and compliance burden and slow adoption of technologies and devices often restrict the business growth.
 

COVID-19 Impact

The recent outbreak of COVID-19 had a favourable impact on medical devices reimbursement market revenue in 2020. Due to the urgent need for medical devices during the pandemic, regulatory agencies expedited the approval processes for new devices. This allowed manufacturers to bring innovative devices to market more quickly, and reimbursement policies had to adapt to accommodate these expedited approvals. The pandemic led to a surge in the demand for various medical devices such as ventilators, respiratory support equipment, diagnostic tests, and personal protective equipment (PPE). This increased demand necessitated quick and widespread reimbursement coverage for these devices to ensure their availability and accessibility.
 

However, the pandemic disrupted global supply chains, affecting the availability and distribution of medical devices. This disruption could impact the reimbursement industry as providers may face challenges in acquiring necessary devices, and reimbursement policies may need to adapt to address the healthcare supply chain disruptions. Moreover, the financial repercussions, changes in healthcare delivery models, and the ongoing need for medical devices may result in further adaptations to reimbursement policies in the future.
 

Medical Devices Reimbursement Market Trends

The rising aging population acts as a significant driving factor for the growth of the medical devices industry. As individuals age, they generally experience an increased incidence of chronic conditions and age-related health issues. This leads to a higher demand for medical devices that aid in diagnosis, treatment, and management of these conditions. Medical devices such as cardiac implants, orthopedic devices, and diabetes management devices are examples of products that are in high demand among the aging population. For instance, according to the United Nations report, the global population aged 60 years or over is projected to reach 2.1 billion by 2050. Similarly, the World Bank data shows that global life expectancy has increased from 52.6 years in 1960 to 73.4 years in 2019.
 

Further, advances in healthcare, improved living conditions, and better access to medical care have contributed to an increase in life expectancy. The increasing number of older adults and their healthcare needs are driving the demand for medical devices, leading to growth opportunities for the industry. Manufacturers and healthcare providers are focusing on developing and offering innovative devices that address the specific requirements of this aging population segment.
 

Medical Devices Reimbursement Market Analysis

Based on payer, the medical devices reimbursement market is bifurcated into public and private. The private segment held leading revenue share and was valued at over USD 308 billion in 2022.  Private payers, such as commercial health insurance companies, provide health insurance coverage to a large segment of the population. Many individuals and families rely on private health insurance plans to access healthcare services, including medical devices. As a result, private payers have a significant influence on the reimbursement landscape. Moreover, factors such as employer-sponsored health insurance, greater flexibility and autonomy, and tailored coverage options among others are expected to support the segmental progression.

Based on healthcare setting, the medical devices reimbursement market is categorized into hospitals, outpatient facilities, and others. The hospitals segment held a majority share in 2022 and is anticipated to reach around USD 495 billion by 2032. Hospitals predominantly operate in inpatient settings, where patients receive care and treatment overnight or for an extended period. Inpatient services involve a higher intensity of medical device utilization, making reimbursement for these devices crucial for hospitals to manage their operational costs and maintain quality patient care. Additionally, due to their size and patient volume, hospitals often have stronger negotiating power with insurance companies and other payers. They can advocate for favourable reimbursement rates and policies, ensuring adequate compensation for the use of medical devices in their facilities.
 

North America medical devices reimbursement market is anticipated to witness healthy growth over the projected timeline to reach over USD 455 billion by 2032. The region has a well-established regulatory framework, such as the U.S. Food and Drug Administration (FDA) in the U.S. and Health Canada in Canada, which govern the approval and reimbursement of medical devices. These regulatory bodies ensure safety, efficacy, and quality standards, providing confidence to both payers and healthcare providers in the reimbursement process. The regional countries have a strong infrastructure, advanced medical technologies, and a high level of healthcare spending, that contribute to a significant market share in medical devices reimbursement. The region has one of the highest healthcare expenditures globally and the regional countries allocate substantial resources to healthcare, including reimbursement for medical devices. Additionally, government healthcare programs, such as Medicare and Medicaid in the U.S., also contribute to the reimbursement landscape.
 

Medical Devices Reimbursement Market Share

Some of the leading players operating in the medical devices reimbursement market include

• CVS Health
• BNP Paribas
• Aviva
• Cigna
• United Health Group
• Allianz
• Aetna
• Humana Inc.
• WellCare Health Plans, Inc.
• Nippon Life Insurance Company

The medical device reimbursement market is competitive in nature, with leading players including public and private companies focusing on improved product offerings to further increase the industry competition. These players are involved in strategic developments including partnerships & collaboration, product launches, mergers, and acquisition to improve their market positioning.
 

Medical Devices Reimbursement Industry News:

• In June 2023, Optum announced to partner with Amedisys which is one of the leading companies in the field of high-acuity care, hospice and home health. The strategy aimed at offering improved health outcomes and experience to patients at reduced costs resulting in continued growth of the company.
   
• In October 2021, Aetna announced its medical offerings for the year 2022 with additional benefits focused on holistic approach consisting of new options for Medicare advantage plan such as Aetna Medicare Eagle and Dual Eligible Special Needs Plans developed specifically for veterans. Such strategies help the company to sustain its brand image as well as expand its customer portfolio.
   

Medical devices reimbursement market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Payer

• Public
• Private

By Healthcare Setting

• Hospitals
• Outpatient Facilities
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Poland
  • Sweden
  • The Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Philippines
  • Vietnam
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Columbia
  • Peru
  • Chile
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • Israel
  • Iran