Orthopedic Bracing Market in the US - Research Paper Example

Back Braces The US has modest growth potential for the orthopedic bracing device market. Since back brace are typically associated with aging process, increase in the shift of demographics of the American population toward the elderly brings about a corresponding increase in the incidence of conditions that orthopedic bracing devices are used in, some of them being carpal tunnel syndrome, osteoporosis, golfer’s elbow, and carpal tunnel syndrome. Post-injury and prophylactic use of back braces is also expected to increase as a result of the expanding demographic that engages in extreme sports because this demographic can fall and break down. In spite of the efforts of cost containment by pricing, Data Analysis, and Coding (PDAC), manufacturers’ efforts are directed at the manufacturing of back braces that would give more reimbursement. Back braces have exhibited a fairly busy market over the past few years. They have been available with an exclusive selection of good quality surgical, healthcare, and medical products. Chiropractors and doctors have been commonly prescribing the patients the use of back braces for back pain ever since it has been introduced into the market. Back have injury is not an uncommon condition and the human and economic costs of experiencing it have increased over the years. This is why, more and more companies are resorting to using measures with or without sound ergonomics programs. One of such measures has been to wear back belts. While the decision to wear it is largely a matter of personal choice, the National Institute for Occupational Safety and Health (NIOSH) is of the opinion that employers and workers should not make the decision of wearing it without the best available information (CDC, 2014). Rather than relying on back braces as a “cure all” equipment for back injury, companies should tend to reduce the lifting tasks’ rights through prevention measures. The bracing and supports market in the US is anticipated to have exceeded $2.48 billion by the year 2018 (PR Newswire, 2012). The bracing and supports market in the US comprises bracing and supports for knee, ankle, spinal orthoses, upper extremity soft goods and bracing, and back soft goods. The aging US population, increasing braces’ use for prevention of sporting injuries, and growing osteoarthritis and obesity are some of the prime factors behind the expected moderate growth of these markets. Growth of the spinal orthosis segment is expected to supersede the growth of other markets because of a strong correlation that exists between the incidence of lower back problems and aging population. Orthopedic bracing market in the US is highly competitive and fragmented. Being just more than a quarter of the total market, only DJO Global is a competitor in the US market whose share is up to 10 per cent. Some of the companies that are its competitors in the US include Spinal Technology, DeRoual Medical Products, Ossur, Bledsoe Brace Systems, Bird & Cronin, and Breg. 40 per cent of the rest of the market is accounted for by dozens of companies whose shares are even lower. This leads to a market that is increasingly commoditized and has a strong competition with respect to price. Product features in braces are similar and there has not been much innovation in the design of back braces. Most companies rely on such strategies as having contracts with group purchasing organizations, and discounting to gain competitive advantage in the market rather than focusing upon product differentiation. MRG Lead Analyst Deanna Venkessel said, This is a huge market, and thus a significant expense for insurers…They have been holding reimbursements down, further affecting prices manufacturers can get for their prescription products. As a result, many manufacturers are developing and marketing better-fitting and more functional off-the-shelf braces. And soft braces have completely lost Medicare and Medicaid coverage in recent years, leading manufacturers to reduce prices on those as well. This has a serious affect on manufacturer product margins, but clearly benefits patients, who have access to a wide variety of reasonably priced braces. (Venkessel cited in MRG, 2015). Back braces for patients without insurance range typically anywhere between $40 and $1000 depending upon a number of factors including the size, style, and material of back brace and whether the back brace is custom-made, custom-fitted, or prefabricated (CostHelper, 2014). The Aspen QuickDraw is a back brace that provides the wearer with the facility of adjusting compression and thus controlling it, and costs around $250 whereas the cost of elastic brace which is relatively simpler and is Criss Cross Lumbosacral Support is nearly #38 (CostHelper, 2014). Most traditional health insurers provide coverage for back braces provided that the back braces are deemed necessary medically and that they adhere to the criteria laid out for durable medical equipment. Certain insurers do not cover a new brace’s cost if the patient has been provided with one over the past few years. Some insurers only provide coverage if the back brace has been purchased from a particular company. Medicare Part B covers back braces that are deemed medically necessary “under the durable medical equipment prefabricated orthotics beneft” (Medicare.gov, n.d.). Personal insurance covers back pain as long as back pain cannot be traced to work, in which case, personal insurance will deny the claim thus suggesting to get it covered by the employer. Also, workers compensation insurance covers back pain provided the worker does not have a history of back pain and that it cause of back pain can be traced at work. Back pain is among the health complaints that are most commonly observed in the US as well as across the globe. Fig. 1 shows that back pain is one of the top ten causes of disability in the adults in the US. Although back pain is experienced at least once by people of all ages in their lifetime, the group of people in which it is prevalent the most is women between 40 and 80 years of age (inthefaceofpain.com, 2013). The main reason of back pain is the aging process combined with a sedentary lifestyle that involves very limited physical activity. An individual’s susceptibility to experiencing low-back pain as a result of spinal degeneration or disc disease increases with the process of aging. Low-back pain happens to be the most common cause of disability related to job and commonly causes people to miss out work. 8 out of 10 people experience back pain at least once in a lifetime (Medline Plus, 2013). At least 25 per cent of adults in the US have reported suffering from low-back pain that has lasted for a whole day at least in the preceding three months whereas another 7.6 per cent mentioned that they have had a severe episode of acute low-back pain for a period of one full year (Chou, 2007). Fig. 1: Top 10 causes of disability among US adults (CDC, 2014b). 13,808 members of the MyVoice internet community were included in a research from June 1 to June 5, 2008 of which 54% were female, 1% were teenagers, 15% were in their twenties, with 38%, 29%, and 17% being in their thirtees, forties, and fiftees respectively (Y-N, 2008). 38.9% of the research participants stated that they had chronic stiff shoulders’ back pain whereas 46.7% stated that they had occasional stiff shoulders’ back pain. The results are demonstrated by the pie chart shown in Fig. 2: Fig. 2: prevalence of back pain (Y-N, 2008). Over the first five days of June 2008 13,808 members of the MyVoice internet community completed a private online questionnaire. 54% of the sample were female, 1% in their teens, 15% in their twenties, 38% in their thirties, 29% in their forties, and 17% in their fifties. Top manufacturers of back brace in the US include but are not limited to Orthotech, Bauerfeind, Orthomerica, Restorative Care of America, DeRoyal, Sammons Preston, Allard USA, and Quinn Medical. The Control Fit Lumboscaral Orthosis is a relatively low profile back brace provided with thermoplastic panels at the back and front and elastic side pulls to provide adequate compression and support circumferentially, and a back panel with an opening designed and located in a way to release pressure from the lumbosacral spine. It can be purchased for $135.82 (RehabMart.com, 2015). Braces and splints were supplied by many physicians several years ago as a convenience to the patients. However, as Medicare local payer policy had to reimburse up to 85 per cent of DME’s invoice cost, payments started to dwindle, thus causing the physicians to actually end up losing money. Consequently, most offices stopped that service and physicians started to write their patients prescriptions to get the braces on their own. For the patients, however, the more convenient option is to get the braces immediately from the very office of the physician. Among the variety of ways in which DME can be offered by a physician, two common approaches include ‘stock and bill’ and ‘approved supplier’ (Haralson, 2015). One of the latest trends in back brace equipment that has been introduced is the BOA back brace that is a user-friendly compression technology. The BOA back brace comprises a unique Lacer Design which comes with a patent pending channel of tear-drop to ensure a uniform and consistent adjustment of the panels of compression from a single pull handle. The design of this back brace is low profile and lightweight which makes it comfortable for wearing between, over, or under the clothing as desired. The BOA back brace provides the user with an optional attachment of rigid shell to help offload the load placed upon lower back after sprain, strain, or injury. “The prevalence of back problems, and the products and procedures centered around the treatment of spinal disorders and pain, have made the spine segment one of the largest and fastest growing orthopedic markets. With the launch of the BOA back brace, we now offer a more complete solution for rehabilitation from spinal surgery and other back-related injuries” (Cross cited in DJO Global, 2004). To conclude, back braces are becoming increasingly popular in the US and have a lot of use for all age-groups of people in general and older adults in particular. The US market for orthopedic bracing device comprises a range of bracing products useful for elbow, wrist, knee, lumbar back, and ankle. These braces help support the different orthopedic joints whether prophylactically, post-surgery, or post-injury. The orthopedic brace sector in the US is presently an already mature market. It is so ingrained in the American culture that it is not easy to have a major impact with a groundbreaking innovation. References: CDC. (2014). The National Institute for Occupational Safety and Health (NIOSH). Retrieved from http://www.cdc.gov/niosh/docs/94-127/. CDC. (2014b). About Arthritis Disabilities and Limitations. Retrieved from http://www.cdc.gov/arthritis/data_statistics/disabilities-limitations.htm. Chou, R. (2007). Diagnosis and Treatment of Low Back Pain: A Joint Clinical Practice Guideline from the American College of Physicians and the American Pain Society. Ann Intern Med. 147, 478-291. CostHelper. (2014). How Much Does a Back Brace Cost? Retrieved from http://health.costhelper.com/back-braces.html. DJO Global. (2004, Sep. 22). dj Orthopedics Launches New Back Brace for Spine Market. Retrieved from http://www.djoglobal.com/investors/press-releases/dj-orthopedics-launches-new-back-brace-spine-market. Haralson, R. H. (2015). Opportunities for Revenue Diversification: Durable Medical Equipment and Orthopaedic Bracing. Retrieved from http://www.orthopreneurpub.com/component/content/article/76-opportunities-for-revenue-diversification-durable-medical-equipment-and-orthopaedic-bracing?start=1. inthefaceofpain.com. (2013). Back Pain: Fact Sheet. Retrieved from http://www.inthefaceofpain.com/content/uploads/2012/05/factsheet_Back.pdf. Medicare.gov. (n.d.). Your Medicare Coverage. Retrieved from http://www.medicare.gov/coverage/braces.html. Medline Plus. Back Pain. Retrieved from http://www.nlm.nih.gov/medlineplus/backpain.html. MRG. (2015). US orthopedic bracing market to grow to nearly $1.4 billion by 2015. Millennium Research Group. Retrieved from http://mrg.net/News-and-Events/Press-Releases/Orthopedic-Bracing-Devices-102711.aspx. PR Newswire. (2012, July 17). U.S. Market for Orthopedic Braces & Support Devices 2012. Retrieved from http://www.prnewswire.com/news-releases/us-market-for-orthopedic-braces--support-devices-2012-162696256.html. RehabMart.com. (2015). Back Braces. Retrieved from http://www.rehabmart.com/category/Back_Brace.htm. Y-N, K. (2008, July 7). Two in five have chronic katakori, back pain. Retrieved from http://whatjapanthinks.com/2008/07/07/two-in-five-have-chronic-katakori-back-pain/. Read More