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Compiled by: Darsh Lathia
RPM technology is beginning to mature and gain popularity across the world, especially in
western countries. Constant innovations, cost-efectiveness and health benets are attracting
investments in this domain. Added to this, public receptivity and legal, regulatory as well as
reimbursement issues are expected to shape the technologys future.
Despite the advantages, the efcacy of RPM is a controversial topic in the healthcare industry.
Many hospitals and healthcare systems have questioned the clinical efectiveness of this
technology and are uncertain about the nancial returns on investment in this domain. Investors
are betting that new federal requirements and changes in how doctors get paid will force
hospitals to buy more RPM gadgets to help watch over and care for patients outside the hospital
setting. Therefore, there is a possibility of many small size companies sprouting with various
innovations to meet this demand. As a result, heavy investments are expected in the near future.
Arancas Views
Remote Patient Monitoring
Market in the US:
A Potential Game Changer?
Remote patient monitoring (RPM) can help the US
government save ~$700 billion in healthcare costs over the
next 1525 years, according to the Federal Communications
Commissions National Broadband Plan (2010).
People aged 65 and above are
expected to account for 19% of
the population by 2030
(2000:12.4%).
Growing incidence of chronic
diseases
Nearly 100 million US citizens
sufer from chronic diseases; the
healthcare expenditure on this
section accounts for ~75% of the
countrys total healthcare
expenditure.
Fewer physicians
It is estimated that there would
be a shortage of 63,000 doctors
by 2015 and 130,600 physicians
by 2025.
Increasing health issues and
high cost of treatment
By 2030, the prevalence of
diabetes is projected to rise
29.6%, while the cost of heart
disease treatment is expected to
triple.
RPM Growth Drivers & Opportunities in the US
RPM Market Size in the US Steadily Rising
Primary Markets for RPM Devices in the US
Major Remote Patient Monitoring Device Segments
US RPM market size, 200716 (USD billion)
2007
Hospitals
Cardiac monitors
Current Segment Forecasted Segment
Nursing Homes Others Home Healthcare
2012 2016F
3.9
10.6
20.9
Historical CAGR: 22.1%
Forecasted CAGR : 18.5%
Increasing and aging population
Key RPM Vendors in the US
Multi-parameter
monitoring
devices
Neuromonitoring devices
Respiratory monitors
Source: Kalorama Information, Market Watch and 4-traders website
First Responders,
Institutional, Physician
Ofces, & Military
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