Report: Recall causes shifts in sleep therapy market

NEW YORK – HME providers expect to shift an average of 58.4% of their Philips Respironics flow generator purchases and an average of 30.2% of their mask purchases to other companies due to the recall, according to the first quarter HME Sleep and Oxygen Survey from Needham. 

That’s up from the 56% and 23.1%, respectively, reported in the third quarter survey. 

“ResMed should gain market share over the (next 12 months),” the survey states. “Respondents expect its share of their flow generator purchases to increase by 6.1% and its share of their mask purchases to increase by 1.8%.” 

Providers also expect, however, for Philips Respironics to gain market share over the next 12 months, as it re-enters the market. They expect the company’s share of their flow generator purchases to increase by 11.7% but its share of mask purchases to decrease by 1.8%. 

The gains by ResMed and Philips Respironics are expected to be made at the expense of smaller players in the sleep therapy market, according to the report. 

Other highlights from the survey: 

• The recall is driving up prices. Providers indicated flow generator prices increased by 11.7% in the last 12 months compared to 4.1% in the third quarter survey, and mask prices increased by 5.9% compared to 1.7%. 
• Flow generator availability has worsened. Providers report they’ve only been able to purchase the following percentage of their desired flow generator purchases within their required timeframes: 8.2% for Philips Respironics (down from 10.3% in the third quarter survey), 13.2% for Fisher & Paykel (up from 7%), and 27.1% for ResMed (down from 45.4%). 
• Sleep patient volumes have declined. Providers report their sleep patient volume decreased on average 13.1% in the last 12 months, but they expect it to increase 7.3% in the next 12 months. 

For oxygen, providers expect a large decline in their portable oxygen concentrator purchases over the next 12 months, partly due to shortages, according to the survey.