Baltimore
The Centers for Medicare and Medicaid Services' Health Care Industry Market Update, its first since June 2002, reveals that American home health spending totaled $45.3 billion in 2001, with the home health agency segment accounting for $33.2 billion. The remaining annual expenditures came from respiratory therapy at $4.5 billion; infusion therapy, $4.7 billion; and DME, $2.9 billion.
Among other findings, the study calls the respiratory therapy market “very fragmented,” with more than 2,000 local providers making up half the market, but says that large respiratory and infusion therapy companies show strong operational and financial performance. Where strategic and attractively priced targets are available, these companies are actively consolidating the industry.
The full report is available at www.cms.hhs.gov/reports/hcimu/default.asp.
For breaking news, go to www.homecaremonday.com, the electronic news service of the home medical equipment industry.
