North American cardiac monitoring and diagnostic service providers are facing difficult times due to declining reimbursement levels despite the growing prevalence of cardiovascular disease, according to market research firm Frost & Sullivan. In addition, a heightened focus on price to gain a competitive advantage is leading to high price pressures and diminishing revenue potential.
Frost & Sullivan research analyst Zachary Bujnoch said that with reimbursement taking a big hit in 2007, cardiac monitoring and diagnostic service providers are struggling to maintain positive growth. However, he noted that long-standing growth factors such as prevalence of cardiovascular disease and aging populations along with current trends such as increasing demand for ambulatory services could help maintain growth.
The firm said that its research revealed that revenues in this market totaled $3.48 billion in 2006, and are likely to reach $3.83 billion in 2013.
“Increased competition in the North American cardiac monitoring and diagnostic services markets has made price a key competitive factor,” Bujonch said.
Going forward, it will be important for market participants to focus on differentiating factors other than price, according to Frost & Sullivan. The company said that some examples of value-added programs include providing support on key issues such as physician education concerning products, services, and current reimbursements.