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The European Market for Orthopaedic Bracing and Support
Frost & Sullivan, July 2004
Continued Healthcare Budgetary Restraints Increase Competition and Put Pressure on Pricing Strategies
Ageing population is among the key factors pushing up healthcare costs for European governments. The measures adopted by them to contain costs put pressure on healthcare purchasers to obtain value for money. Besides issuing competitive tenders for commodity items, healthcare purchasers are forced to negotiate more favourable terms for non-commodity items with other market participants. As a result of this trend, orthopaedic bracing and supports companies are minimising costs to meet price competition. However, the aggressive nature of the market is likely to ensure continuous development of new products/services, investment in capital/human resources to upgrade and expand facilities, and leverage of cost structure and market acquisitions.
This study explores the European orthopaedic braces and supports market in terms of revenue by geographic region and by market segments. The research reviews the principal drivers and restraints for each geographic region and examines the major technological advances that are expected to have an impact on the market.
Poor Reimbursement Structures Compel Further Restructuring of Market
Member states within the European Union (EU) have significant variations in their system of reimbursement. The differences in pricing, co-payments and reimbursement are mainly due to the presence of third-party payers between the patient and the healthcare professional. Every transaction is subject to a set of complex rules and regulations prevailing in the member state. The demand for evidence-based data and proven efficacy results can result in reduced choice of product to the patient, lower prices and restrained product development.
Nonetheless, the industry is continuously rationalising and incorporating structural changes to tackle evolving healthcare systems, says the analyst of the research. There has been an increase in acquisitions/mergers to consolidate market share while acquiring new products to exploit niche and emerging markets. More joint ventures and co-marketing agreements to develop new technologies, enter new geographic markets and acquire additional distribution networks can be expected.
Hip Orthosis Developing as a Significant New Niche Market
While all segments of the orthopaedic bracing and support market slowly grow as age-related orthopaedic problems and sports injuries increase, the development of hip orthosis presents a strong new opportunity. Hip orthosis can help avoid painful and expensive dislocation treatment after primary or revision hip surgery. Prefabricated, adjustable range-of-motion hip abduction orthosis also improves post-operative management of hip fractures. The advent of the hip orthosis with its clear clinical advantages is thus expected to help market growth.
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