Slight Boost Expected in IVD Industry

Sales are expected to rise an extra 1.3% more per year, in the next five years, than would have otherwise been seen without the law.

The Patient Protection and Affordable Care Act (H.R. 3590), passed in 2010 is complex legislation that affects virtually every aspect of health care, and many of its provisions are beginning to take effect now. The overall objective of the PPACA is to expand access to health care coverage for most US citizens and legal residents by requiring individuals to have coverage, and for employers to either provide coverage or pay a penalty that would support coverage from a pool of public funds.

The most significant IVD and clinical lab sales drivers resulting from the PPACA will be an expansion in the number of insured US persons, increased utilization of tests related to nosocomial infections, and new coverage of wellness and prevention programs. Kalorama also noted that the bill contains market restraints as well, and warned that many questions about implementation and future effects remain.

“The reform taketh away from IVD but you could say it ‘giveth’ a little more,” said Bruce Carlson, publisher of Kalorama Information. “Several key provisions of the PPACA, in combination with favorable population demographics, will stimulate IVD product sales. It’s an industry that lives or dies based on test procedure numbers and thus the growth in the number of persons with health care coverage is good news for IVD.”

The Kalorama report contains sales estimates for the historic 2012 period of the IVD market and forecasts are provided through 2022. It then analyzes the impact of various PPACA provisions on the IVD market. The report can be found online (please see Related Links: below).

Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices, and healthcare, as well as a full range of custom research services. Kalorama routinely assist the media with healthcare topics.

Related Links:
Kalorama Information
Report: The Impact of Healthcare Reform (PPACA) On the US IVD Industry