IBISWorld (via PRWeb)
May 21, 2012
The Medical Device Cleaning and Recycling has grown in popularity during the five years to 2012. Revenue is expected to increase 20.5% per year on average to $372.5 million during this period. “The Great Recession was a strong boon to the industry,” says IBISWorld industry analyst Sophia Snyder. “The poor economic environment resulted in fewer people with health insurance coverage. In turn, the number of insured patients in hospital rooms shrank, contributing to declining operating profit margin for these key customers.” Healthcare providers’ shrinking revenue and mounting costs made relatively cheaper reprocessed medical devices more appealing. As the economy continues its slow recovery in 2012, growth is expected to decelerate to 12.0%.
…The Medical Device Cleaning and Recycling industry has an extraordinarily high degree of market share concentration. Concentration has increased steadily during the past five years, primarily driven by Stryker’s and Johnson & Johnson’s growth and the exit of many noncompliant establishments. Notable acquisitions include Stryker’s acquisition of Ascent Healthcare Solutions in 2010. At the time, Ascent Healthcare was one of the largest medical device reprocessors, thus, substantially increasing Stryker’s market share. In 2011, Johnson & Johnson acquired SterilMed, which aided the company in its efforts to remain at the forefront of the industry.