U.S. Healthcare Reform Presents Challenges to the Diagnostic Imaging System Market, Resulting in Only Modest Growth Through 2023

BURLINGTON, Mass., Nov. 11, 2014 /PRNewswire/ -- Decision Resources Group finds that the diagnostic imaging system market in the United States is being hindered by ongoing healthcare reform in the country, particularly with an ongoing move toward a value-based payment system. As a result, even though the aging U.S. population is spurring demand for diagnostic procedures, market growth will only be modest through 2023.

Other key findings from Decision Resources Group's coverage of the U.S. diagnostic imaging system market:

• Changing payment system: As part of healthcare reform, the U.S. payment system is moving from a fee-per-service model to a value-based model, effectively changing the radiology department from a profit center to a cost center for facilities. As a result, the appropriateness of certain imaging procedures will be increasingly scrutinized going forward, limiting market growth.
• Cost pressures: Cost pressures are also encouraging more facilities to choose lower-cost options, such as ultrasound, instead of the more expensive imaging modalities. This will be especially true as ultrasound technology improves, narrowing the gap between ultrasound and other imaging modalities.
• Radiologist insight: Radiologists surveyed for this report noted that servicing was the most important factor when evaluating their relationship with vendors. This factor exceeded other notable metrics such as imaging quality or product features.
• Growing CT system market: The computed tomography (CT) system market will be strongly affected by new, stricter radiation dosage regulations. Facilities must comply with these new regulations by 2016 or face reduced reimbursement for CT procedures. Many facilities are therefore upgrading their aging CT systems to meet these requirements, positively impacting market growth.

Comments from Decision Resources Group Senior Analyst Felix Lam:

• "The U.S. diagnostic imaging system market has long been dominated by well-known multimodality vendors GE Healthcare, Siemens Healthcare and Philips Healthcare, which makes it difficult for other companies to gain share. That being said, Toshiba Medical Systems has been making headway in this market, recently re-launching a nuclear medicine system, allowing it to also offer products across all diagnostic imaging system segments."
• "Single-modality vendors tend to have the most success in the general radiography and ultrasound system markets, which generally have lower R&D costs. These companies cater to smaller, nonhospital facilities. In these segments, there is also an influx of Asian companies, such as Mindray Medical International, iRay Technology and Vieworks, offering affordable alternatives to the bigger brand name systems."

Additional Resources:

• Felix Lam has written a Medtech 360 report on this subject entitled US Markets for Diagnostic Imaging Systems 2015.
• Felix Lam will be publishing a white paper in November 2014 on the impact of U.S. healthcare reform and the shift toward a value-based system on the role of the radiologist.

About Decision Resources Group
Decision Resources Group offers best-in-class, high-value information and insights on critical issues within the healthcare industry. Clients rely on this analysis and data to make informed decisions. Find out more at www.DecisionResourcesGroup.com.

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

For more information, contact:

Decision Resources Group
Christopher Comfort
781-993-2597
[email protected]

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SOURCE Decision Resources Group

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