Successful treatment: The rapidly growing obese population will spur industry demand

Over the past five years, the Medical Equipment Rental industry has exhibited growth, thanks to the rapid advent of high-cost equipment. As many healthcare providers have grappled with cuts in Medicare and Medicaid reimbursements they have shifted toward cost-saving strategies. In particular, many healthcare providers have rented, rather than purchased, medical equipment because they can access up-to-date technologies at a lower cost. In the coming years, in response to the rapidly growing obese population, many healthcare providers will rent bariatric equipment, thus stimulating industry revenue growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 11-16
5.7%
Forecast Growth 16-21
Profit
Employment
17,946
Businesses
810

Industry Threats & Opportunities

  • Healthcare providers rent medical equipment because they can access up-to-date technologies at a lower cost
  • Over the past five years, the industry has expanded to include more services
  • Healthcare reform will provide opportunities for healthcare providers to lease medical equipment
  • Industry Report - Starting a New Business Chapter

    The Medical Equipment Rental industry exhibits moderate barriers to entry. While the industry is characterized by a high level of fragmentation, coupled with a low level of market share concentration, new industry entrants still face numerous barriers to entry. For example, having the capital outlay required for new equipment purchases may pose as a barrier to entry for new industry entrants. Furthermore, to cater to downstream demand (e.g. acute care hospitals), industry operators need to have a large inventory of medical equipment. Typically, the purchase price for equipment ranges from $1,000 to $15,000 per item, thereby adding to the industry's barriers to entry.Industry operators need to secure equipment from medical equipment manufacturers. In ...purchase to read more.

    Additional Insights for the Medical Equipment Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Medical Equipment Rental Industry are

  • Having a cost effective distribution system
  • Having links with suppliers
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Medicaid and Number of adults aged 65 and older in the Medical Equipment Rental industry impact industry performance..

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    What's in this report

    What is the Medical Equipment Rental Industry?

    Companies in this industry rent and lease medical equipment to institutional customers. This industry specifically excludes companies that primarily rent and lease medical equipment to home care customers.

    Industry Products
  • Medical equipment rentals, excluding surgical equipment
  • Support services
  • Surgical equipment rentals
  • Industry Activities
  • Renting medical equipment
  • Leasing medical equipment
  • Providing customer support services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Number of adults aged 65 and older
  • Number of people with private health insurance
  • Total health expenditure
  • Number of physician visits

  • Current Performance
  • Regulatory environment
  • Establishments and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthcare reform provides opportunities
  • Upstream regulations affect the industry
  • Table: Medical Equipment Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Medical Equipment Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Primary Care Doctors
  • Hospitals
  • Nursing Care Facilities

  • Key Selling Industries
  • Medical Device Manufacturing
  • Medical Instrument & Supply Manufacturing

  • Products & Services
  • Medical equipment rentals, excluding surgical equipment
  • Support services
  • Surgical equipment rentals
  • Chart: Medical Equipment Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Acute and extended care organizations
  • Managed care and other private insurers
  • Other
  • Medicare and Medicaid reimbursements
  • Chart: Major Market Segmentation for the Medical Equipment Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitDepreciationWagesPurchasesRent, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Medical Equipment Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical Equipment Rental Industry

  • Industry Globalization
    Acelity L.P. Inc., Universal Hospital Services Inc.,
  • Table: Acelity L.P. Inc. - financial performance
  • Table: Universal Hospital Services Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Medical Equipment Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Medical Equipment Rental Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Total health expenditure (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Acute
  • Of or relating to medical care intended for short periods of time.
  • Lease
  • A contract granting use of property during a specified period in exchange for a specified rent.
  • Rent
  • A payment made at specified intervals in return for the right to use the property of another.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Medical Equipment Rental Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Medical Equipment Rental industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Medical Equipment Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Medical Equipment Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Medical Equipment Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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