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Double-Digit Growth Projected for Sleep Service Provider Markets - New analysis from Frost & Sullivan, U.S. Sleep Service Provider Markets, reveals that the total market generated revenue of $1,631 million in 2004 and expects to reach $4,436 million in 2011 at an estimated compound annual growth rate (CAGR) of 15
Double-Digit Growth Projected for Sleep Service Provider Markets

 

PRZOOM - /newswire/ - San Antonio, TX, United States, 2005/04/18 - New analysis from Frost & Sullivan, U.S. Sleep Service Provider Markets, reveals that the total market generated revenue of $1,631 million in 2004 and expects to reach $4,436 million in 2011 at an estimated compound annual growth rate (CAGR) of 15.

   
 
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The next five years are expected to bring double-digit revenue growth to the sleep service providers market in the United States, despite the fact that it is facing increasing saturation. Sleep disorders are acquiring increasing importance within the medical community due to their obvious impact on long-term health.

“Awareness of sleep disorders is increasing, with the medical community adding them to its list of conditions that should be routinely tested for in patients,” remarks Frost & Sullivan Industry Analyst Katherine Shariq. “The proper diagnosis and treatment of sleep disorders among the aging baby boomer population is expected to strongly contribute to the double-digit growth projected over the next five years.”

New analysis from Frost & Sullivan (healthcare.frost.com), U.S. Sleep Service Provider Markets, reveals that the total market generated revenue of $1,631 million in 2004 and expects to reach $4,436 million in 2011 at an estimated compound annual growth rate (CAGR) of 15.4 percent.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the U.S. Sleep Service Provider Markets, – then send an email to Melina Gonzalez- Corporate Communications at melina.gonzalez[.]frost.com with the following information: your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

Accreditation is likely to play a deciding role in the growth of this market. Currently, the Joint Commission of Accreditation of Healthcare Organizations (JCAHO), which ensures that facilities provide safe treatment to their patients, governs almost all hospitals.

Sleep providers – both hospital-based and independent facilities – are eligible to apply for sleep testing accreditation through the American Academy of Sleep Medicine (AASM).

While many of the hospital-owned facilities and practice-based labs are AASM accredited, a large number of independent sleep facilities are neither accredited nor planning to become certified. The same holds true for all contract-operated, hospital-based facilities.

Although certification is still optional, many insurance companies are exerting pressure on market participants to get certified in an attempt to ensure that facilities maintain high standards in providing treatment. As an incentive, they have started offering higher reimbursements to accredited facilities, and in some cases, even denying claims from nonaccredited ones.

“Should physicians and insurance companies push to have patients seen only at accredited facilities, the expansion of the market would be severely hampered,” notes Shariq. “In such a case, independently owned and operated facilities would be the hardest hit, since more than 50 percent of them are not accredited.”

These facilities are also at risk from the growing market maturation. As the market matures, an increasing number of hospitals are beginning to manage their sleep services on their own, rather than contract them to external companies. If that happens, it is likely to be a big blow to small, independently owned sleep service companies that manage virtually all contract-operated, hospital-based sleep labs.

To address this challenge, such independent companies could consider expanding existing operations beyond traditional services to create new income sources. For some of these facilities, offering therapeutic devices as an option has helped augment revenues, while for others expanding operations to include clinical research has served this purpose.

U.S. Sleep Service Provider Markets, part of the Patient Monitoring subscription, service is among the first studies to attempt to determine the actual state of the sleep service providers market.

 
 
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Double-Digit Growth Projected for Sleep Service Provider Markets

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