The Right Dose

The home infusion therapy market continues to grow. For many patients, the convenience of having therapy outside of an acute care setting is preferable. And for some payers, the cost savings are similarly attractive. As the market matures and more therapies are proven to be safe and effective in the home setting, opportunities will continue to increase for providers.

“Home infusion therapy is currently an $11 billion market with projected growth to approach $16 billion by 2012,” says Jonathan Sadock, managing partner and CEO of Paragon Ventures.

According to Sadock, there are many factors contributing to this growth, including cost savings to the health care system, a changing reimbursement environment, an increase in new intravenous drugs and biologic products and impending health care reform.

“Compared to the costs of treatment in a hospital, home infusion therapy represents significant savings in excess of 80 percent. Administering these medications at home generally costs $150 to $200 a day, far below the cost of a typical inpatient hospital stay, which is $1, 500 to $2,500 each day,” explains Sadock. “Home infusion therapy also eliminates the risk that patients will be exposed to infections caused by hospital bacteria that can invade through IV lines and catheters.”

Erik Graaf, director of marketing for B. Braun Medical, says that while the market continues to grow, it has slowed somewhat due to the economy as well as market consolidation and reimbursement challenges. However, he stresses that the baby boomer population and an overall interest in quality of life for patients continue to make a positive impact.

“One of the biggest struggles for exponential growth is the way the reimbursement is currently structured in this country. A lot of therapies that are delivered by home infusion companies are not reimbursed by Medicare,” points out Graaf. “From a business perspective, it doesn't make a lot of sense because there are a number of benefits from a payer standpoint, including quality-of-life issues and reduction in overall costs.”

Sadock adds that growing numbers of patients needing intravenous medications are getting their treatments at home, but “the current gap in Medicare coverage is making it harder for older and sicker patients to swap hospital stays for home care. There are a number of legislative issues on the horizon that not only support the home infusion sector but can substantially propel its growth,” he says.