After seeing a downturn over the past few years due to COVID-19, the orthopedic device market is set to return to pre-pandemic levels this year.
The market is expected to reach ~$50 billion by 2023, according to analytics firm GlobalData.
COVID-19 and health insurance company reimbursement policies are shifting many orthopedic surgeries out of hospitals and into outpatient facilities, such as surgical centers. emergency care (ASC).
This could benefit companies like HCA Healthcare (NYSE:HCA), Community Health System (CYH), Health services for the whole population (UHS) and Tenet Healthcare (high school) that all operate outpatient care facilities.
Tina Deng, lead medical devices analyst at GlobalData, said that more and more orthopedic surgeries – especially total joint replacements – are happening in outpatients or ASCs to open up more hospital beds. She added that the Centers for Medicare & Medicaid Services are asking for fewer procedures to be performed on an inpatient basis.
Since ASCs are smaller facilities than hospitals with smaller operating spaces, orthopedic devices are being developed taking this into account, as well as remote control capabilities.
DePuy Synthes, the orthopedic division of Johnson & Johnson (NYSE:JNJ), is another company to keep an eye on due to their longstanding expertise in the field and their experience working with ASC.
The GlobalData report also highlights the growing number of robotic-assisted surgeries this year. They are used in surgeries including partial knee replacement, total knee replacement, and total hip replacement, providing more consistent and accurate results.
Deng says that while the general surgical robot market is largely dominated by Intuitive Surgical (ISRG), maker of the da Vinci surgical system, major orthopedic device manufacturers are vying for a piece of the robotics market.
Global Data Project that the orthopedic robotic surgery systems market will be $984 million worldwide by 2023 with an annual growth rate of 25.6%.
Artificial intelligence and machine learning are also expected to improve outcomes delivered by orthopedic robots. In July 2022, Zimmer Biomet (ZBH) announced a partnership with New York’s Hospital for Special Surgery to innovation center development AI in joint replacement robots.