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A rapidly ageing population, the
increasing trend toward non-invasive treatments and better disease management
strategies are driving the demand for orthopaedic braces and supports in Europe.
"Demographics show that by 2020,
the number of elderly will account for nearly a quarter of Europe's total
population," says Frost & Sullivan Research Analyst Eleni Grammenou. "These
changes in demographics will correlate positively with the increase in demand
for orthopaedic braces and supports due to an expected rise in the incidence of
age-related conditions such as osteoporosis and osteoarthritis."
The European market for
orthopaedic braces and supports generated a revenue of $502 million in 2004,
which is projected to increase to $678 million in 2011, at a compound annual
growth rate (CAGR) of 4.4 percent between 2001 and 2011.
Across Europe, healthcare costs
are rising, placing hospitals under severe pressure to control budgets and cut
costs.
As a result, greater emphasis is
given on reducing recovery time for patients alongside improving quality of
healthcare provision. There is also a growing trend toward non-invasive devices
for prevention, treatment and rehabilitation. These factors are likely to
generate significant demand for orthopaedic braces and supports.
Cost containment is, in fact, the
common issue uniting the different national healthcare systems of Europe.
Although management structures and healthcare systems vary from country to
country, almost all their governments are adopting various measures and reforms
to maximise value for money. The aim of these reforms is to curb expenditure
while maintaining consistent or improved quality of service.
"All European governments are
increasingly concerned about containing the costs of providing orthopaedic
bracing and supports products as well as ensuring that sufficient products and
quality services are offered for other conflicting healthcare demands," says Ms.
Grammenou.
The efforts of healthcare
providers are likely to affect the dynamics and competitive landscape of the
market as well as intensify competition. More significantly, the cost
containment strategies are impacting the level of reimbursements for orthopaedic
braces and supports.
Reimbursement systems in Europe
vary considerably in terms of pricing, co-payments and settlements. The
complexities arising out of these differences create complications for
third-party payers such as private insurance companies and social security
systems. These companies play a key role between the patient and the healthcare
organisation selling the braces and supports.
Reimbursement in all countries,
therefore, depends upon compliance with a complex set of rules and regulations.
In the Netherlands, for instance, the Government has drawn up a detailed list
specifying the indications for which braces and supports will qualify for
reimbursement.
Similarly, France has an advisory
committee for healthcare benefits - the Tariff Interministeriel des Prestations
Sanitaires (TIPS) - which decides the level of reimbursement according to the
economic and medical benefits that the bracing and supports are likely to
provide. However, this system has come under heavy criticism for its complexity
and long-winded bureaucratic procedures, especially for innovative products.
In the United Kingdom, the
National Health Service (NHS), which reimburses orthotic products is coming
under increasing pressure to reduce or eliminate the number of rigid knee braces
prescribed for orthopaedic patients.
"The numerous reimbursement
structures and regulations present in various countries affect the type of
products that qualify for commissioning by government bodies," notes Ms
Grammenou. "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 accurately address market needs as well as meet
European regulations."
With cost constraints driving some
hospitals to even consider re-using braces and supports, sales revenues are in
danger of being affected.
Closely monitoring end-user needs
is likely to benefit manufacturers in terms of clinical applications and
strengthen their competitive position in the market. Addressing and exceeding
customer expectations is likely to increase sales revenues and market shares.
For more details , contact :
Radhika Menon Theodore, Corporate Communications, at
rmtheodore@frost.com
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