Ongoing healthcare reform and the move toward a value-based payment system will hinder the U.S. diagnostic imaging system market over the next decade, according to a new report from market research firm Decision Resources Group.
Market growth will be modest through 2023, even though the aging U.S. population is spurring demand for diagnostic procedures, Decision Resources said.
As the U.S. payment system moves from fee for service to a value-based model, the radiology department will shift from a profit center to a cost center for institutions. Going forward, this will lead to increased scrutiny of the appropriateness of certain imaging procedures, limiting market growth, according to the company.
In other trends that will affect growth, cost pressures are encouraging more facilities to select lower-cost options such as ultrasound over more expensive imaging modalities. This dynamic will especially take hold as ultrasound technology improves and narrows the gap with other imaging modalities, Decision Resources said.
On the positive side, new, stricter radiation dosage regulations will strongly affect the CT system market, as many facilities are upgrading their aging CT systems to meet new regulations by 2016.
In other findings, radiologists surveyed for the report noted that service was the most important factor when evaluating their relationship with vendors, exceeding other metrics such as imaging quality or product features, according to the firm.
While the U.S. imaging systems market has long been dominated by well-known multimodality vendors GE Healthcare, Siemens Healthcare, and Philips Healthcare, Toshiba Medical Systems has been making headway in the market, Senior Analyst Felix Lam noted in a statement. Toshiba recently relaunched a nuclear medicine system and can now offer products across all diagnostic imaging segments.
Single-modality vendors tend to have the most success in the general radiography and ultrasound system markets, as they generally have lower research and development costs, Lam said. These firms cater to smaller nonhospital facilities, and in these market segments, an influx of Asian companies, such as Mindray Medical International, iRay Technology, and Vieworks, is offering affordable alternatives to bigger brand-name systems, he said.
