Medical Devices Reimbursement Market Size, Share & Trends Analysis Report By Payer (Public, Private), By Healthcare Setting (Hospitals, Outpatient Facilities), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global medical devices reimbursement market size was valued at USD 466.5 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 10.4% from 2020 to 2027. Medical devices reimbursement is defined as a payment, a private or public insurer pays to a healthcare provider for the cost incurred while using medical devices. Usually, the health insurer or government payers cover the patients’ healthcare expenses inclusive of medical devices use. Technological advancements in Electronic Medical Records (EMR), rising cases of chronic diseases, and the growing need for reimbursement are certain factors driving the market. The reimbursement amount is decided by two methods; complete reimbursement of specific medical devices and payment by the result of the entire medical procedure where a medical device is used. 

The U.S. Affordable Care Act (ACA) focuses on decreasing the cost of healthcare for patients. The main purpose of this act is to reduce the medical device cost and make affordable healthcare insurance available to every person in the country. In addition, the Center for Medicaid and Medicare is working towards providing high-quality medical devices and making health insurance available for billions of people.

Hence the Medicaid spending in the U.S. increased by 3.9% in 2017. Also, according to a report published by the Center for American Progress (CAP) around 1.3 trillion USD is estimated to have been spent for healthcare reimbursement in 2019 within the US. Due to this reason, the market is expected to show lucrative growth over the forecast period.

Furthermore, with an increasingly aging population, healthcare expenditures will continue to increase, leading to demand for medical devices. This is another factor that will highly impact the reimbursement industry in the long run. Other factors responsible for the growth of the market are increasing the cost of healthcare, growing patient population, and rising awareness among people regarding health insurance policies.

Payer Insights

The private medical devices reimbursement segment accounted for the largest revenue share of 64.7% in 2019. The large share of this segment is attributed due to the presence of a large number of private players in the market and it continues its dominance over the forecast period. Additionally, the rising prevalence of cancer and diabetes and its increasing demand for better treatment is also responsible for segment growth over the forecast period. Also, the current assessment criteria for reimbursement reflect the cost of using a device or performing a procedure but not the value of the technology used. Thus, owing to a lower average reimbursement value, various public healthcare settings do not have the most advanced technology medical devices at their disposal.

Healthcare Setting Insights

The hospital segment accounted for the largest revenue share of 49.6% in 2019 and is anticipated to maintain its dominance over the forecast period. Moreover, the growing aging population and increasing prevalence of chronic disease are further driving the segment growth. This segment is expected to witness lucrative growth over the forecast period. As the prevalence of the chronic disease is increasing, the demand for medical device reimbursement is majorly increasing in large scale healthcare settings such as hospitals.

The hospital system has many innovative devices that are most widely used in private hospitals before they are sold to public hospitals. The private healthcare settings maintain a purchasing budget which includes surplus revenue they extract from patients directly. Hence, they are more equipped with state of the art medical devices.

Regional Insights

In North America, the medical devices reimbursement market captured a revenue share of 49.3% in 2019 and is expected to grow throughout the forecast period. Increasing cases of various deadly diseases in the region are predicted to stimulate the market over the forecast period. Furthermore, the reimbursement framework is the most advanced within the region compared to other countries. A biannual revision of the list of devices is performed by committees to incorporate the latest products within the reimbursement system.

Changes in the regulatory scenarios and increasing pressure on healthcare industries to decrease service costs are likely to increase the demand for medical device reimbursement. Hence the market is expected to show growth over the forecast period. An increasing number of healthcare centers and rising demand for medical devices are expected to drive the market in Europe.

However, in Asia Pacific, the market is likely to witness significant growth over the forecast period due to rising healthcare expenditure, increasing chronic disease prevalence, and rising demand for resources in developing countries like China, Japan, Korea, and India. These countries are adopting the policies followed by the U.S. and Europe in order to streamline and develop a highly efficient healthcare management system within their own regions.

Key Companies & Market Share Insights

Key companies are stressing on research and development to introduce technologically advanced products and gain a competitive edge. Growth in medical device reimbursement will in turn propel technological advancements by the medical device manufacturers. This will allow for better healthcare outcomes and higher cost efficiency in the long run. Furthermore, the medical device players are investing in consulting towards the preparation of apt reimbursement proposals for regulatory authorities to increase their profit margins. This trend is expected to rise owing to reimbursement is the biggest challenge for the medical device manufacturers to secure coverage and attract risk-averse investors. In North America, the most prominent region for this market, since the implementation of the ACA, the healthcare industry has transformed from a volume-based to a value-based care model, thus driving the need for reimbursement consulting. Companies are also engaging in partnerships, mergers, and acquisitions, aiming to strengthen their product portfolio, manufacturing capacities, and provide competitive differentiation. Some of the prominent players in the medical devices reimbursement market are:

• Aviva

• Nippon Life Insurance

• CVS Health

• WellCare Health Plans

• BNP Paribas

Medical Devices Reimbursement Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global medical devices reimbursement market report on the basis of the payer, healthcare setting, and region:

• Medical Devices Reimbursement Payer Outlook (Revenue, USD Billion, 2016 - 2027)

  • Public

  • Private

• Medical Devices Reimbursement Healthcare Setting Outlook (Revenue, USD Billion, 2016 - 2027)

  • Hospitals

  • Outpatient facilities

  • Others

• Medical Devices Reimbursement Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

  • Middle East & Africa

    • South Africa

    • Kuwait

    • UAE