While the demand for arthroscopy procedures, including knee, shoulder, small-joint and hip procedures will continue to grow steadily due to the numerous benefits of minimally-invasive surgeries, downward pressures on prices, which include increased reuse and refurbishing as well as reimbursement controls, will limit revenue growth. There will also be a significant downward pressure on the selling price of arthroscopic devices, resulting in a moderate four percent annual growth rate through 2016.

The mature and commoditized arthroscopy market has seen little technical innovation in recent years; as a result, products are relatively undifferentiated and competition is largely on price. Additionally, increasing rates of reprocessing of single-use devices and refurbishing of reusable devices will exert further downward pressure on selling prices. While physicians are wary of using reprocessed products, facilities have a significant incentive to reduce costs.

“The poor economy and changes in health insurance regulations will have a negative effect on the budgets of the ambulatory care centers where the majority of arthroscopy procedures are performed,” said MRG analyst Canny Ho. “Many of these procedures are considered elective and patients aren’t willing to pay the out-of-pocket costs associated with treatment. This factor, in combination with product bundling and the challenge of remaining competitive against reprocessed and refurbished devices, will continue to drive selling prices down in most segments of the market.”

Arthroscopic procedures show faster recovery times and lower complication rates when compared to open surgery and can also be performed on an outpatient basis. Smith & Nephew (London, United Kingdom) has the largest share of the arthroscopy device market, but has strong competition from ConMed Linvatec (Largo, FL, USA), Stryker, and Arthrocare (Austin, TX, USA).

Related Links:
Millennium Research Group
Smith & Nephew
ConMed Linvatec