Sleep Revenue Expected to Grow 6% Over 12 Months
Providers temper earlier previous growth predictions in the latest HME Business, Wells Fargo sleep survey.
- By David Kopf
- Sep 25, 2009
HMEs expect sleep revenue to grow by 6 percent in the next 12 months, according to the Q4 2009 HME Sleep Survey from HME Business and Wells Fargo Securities, LLC have released
That expectation was down from 9 percent in our prior Q2 survey, and came after growing at 5% (down from 7% in our prior survey) in the last 12 months. Download the full report.
In the next 12 months, HMEs said they expect the economy to slow growth by 1.3 percent and home testing to increase growth by 1.4 percent. Based on the results of the survey, we maintain our U.S. sleep market growth forecast of 8 percent to 10 percent constant currency growth.
The seventh biannual survey included responses from 119 home medical equipment dealers providing sleep collected from Sept. 21 to Sept. 24.
An important finding was that Increased mask replacement rates and use of compliance tracking are drivers in the sleep market. On average, the HMEs surveyed indicated that sleep patients used 2.1 masks per year in the past 12 months and expect this to increase to 2.2 masks per year in the next 12 months.
While this seems like a small change, Wells Fargo estimates that it could add 5 percent to U.S. mask growth and over 2 percent to U.S. sleep market growth. On average, the HMEs indicated that they used compliance tracking in 67 percent of their sleep patients in the past 12 months and expect this to increase to 74 percent in the next 12 months.
About the Author
David Kopf is the Editor of HME Business.