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European Orthopaedic Braces and Supports Markets
Frost & Sullivan, Nov 2005
Budgetary Constraints Impact Market Growth
There are many econometric and sociometric variables adversely affecting healthcare costs across the European continent such as the increasing ageing population, end users’ mounting expectations and increasing medical needs. Cost containment issues, therefore, pose a strong challenge to hospitals throughout Europe. Although the management structures and national healthcare systems of the different European countries vary, almost all their governments are adopting various reforms and measures aimed at cost cutting and maximising value for money. The number of inpatients in many European hospitals is also decreasing and funding is shifting to the primary healthcare sector. As the focus increasingly shifts towards cost control measures, many hospitals are even considering re-using braces and supports. All these issues are together affecting the purchasing trends in the orthopaedic braces and supports market.
This Frost & Sullivan research service takes an in-depth look at the European braces and supports market and examines some of the major issues impacting its growth. It discusses the key drivers, restraints as well as challenges facing the market and offers strategic recommendations to address them.
Complex Reimbursement Structures Affect Sales
Reimbursement systems in the 25 European countries are unique and vary considerably in terms of pricing, co-payments and settlements. The complexity of individual structures creates difficulties for third-party payers such as private insurance companies and social security systems that play a key role between the patient and the healthcare professional selling the braces and supports. All transactions in all countries have to, therefore, comply with a complicated set of rules and regulations before the reimbursement can take place.
The numerous reimbursement structures and regulations affect the type of products that qualify for commissioning by government bodies, notes the analyst of this research service. Hence, one of the main challenges for manufacturers of orthopaedic braces and supports is to seek ways to improve market access, perhaps by developing products that address market needs and meet European regulations.
Fierce Competition Prevails in the Market
Rising healthcare reforms and patients’ need for greater access to orthopaedic soft goods equipment has led to increased competition among European healthcare providers. Manufacturers are also competing with one another in terms of product price, service, quality and performance in an attempt to maintain competitive positioning and develop opportunities in emerging segments.
Price is in fact one of the biggest competitive factors in the orthopaedic soft goods market. Manufacturers are likely to continue their efforts to curb prices. However, they are also likely to continue investing more capital and human resources in expanding facilities, developing new products and delivering improved service. Close monitoring of end users’ needs is also expected to benefit manufacturers in terms of clinical applications and strengthen their competitive position in the market, remarks the analyst. Addressing and exceeding customer expectations is envisaged to increase sales revenues and market shares.
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