Cardiac Rhythm Management (CRM) is a large revenue generator for hospitals. And savvy supply chain teams dedicate time and resources to maximize revenue from CRM. Reimbursements for inpatient procedures range from $12,990 for an uncomplicated pacemaker procedure up to $32,595 for automated implantable cardioverter defibrillator (AICD) procedures.*
As with many procedures in a hospital setting, CRM was affected by the Covid-19 outbreak. Financial reports from the top three manufacturers (Medtronic, Boston Scientific, and Abbott) indicate that sales in the CRM segment in the second quarter of 2020 were down between 30% and 40% when compared to the same period in 2019. In this article, we will look at 2018 and 2019 data for trends in CRM. We will address the impact of covid-19 on cardiac rhythm management in greater detail in a future post.
CRM as a category is highly technological, and it comes as no surprise there are few players in the market. The top manufactures are Medtronic (42.9%), Abbott (24.3%), Boston Scientific (25.5%), and Biotronik (7.3%). It is worth noting that the Curvo Research Network (CRN) market shares may be slightly different than those of the overall US market.
There are also smaller companies that are rising, such as Microport (<0.1%) which recently acquired a CRM line as well as Oscor that supplies CRM products.
CRM Price Trends
In the recent Spotlight on CRM, we calculated the Average Selling Prices (ASPs) for each of the categories as defined by Curvo** as well as the top brands within each respective category. The ASP’s have generally gone down from 2018 to 2019. The only two categories in which they increased were the single chamber pacemaker (0.3%) and the monitors (0.7%).
The reduction of the ASPs from 2018 to 2019 in most of the categories is a good indicator of the general trend within CRM. If you have not negotiated a new CRM contract or looked at your current prices recently, now may be a good time to do so.
The market share for the different categories within CRM** has been fairly consistent. The biggest jump we’ve seen in 2019 was in the CRT-D’s, which dropped by -1.3%. This could be due to some recalls that have been in the market in the last few months.
The other biggest change was in the leadless Micra pacemaker. The market share increased by 0.6%. Expect to see an increase in leadless technology in the coming decade as it becomes the standard in CRM.
More Cardiac Rhythm Management Trends
If you’re working on a cardiac rhythm management sourcing project, more in depth trends are needed. That’s why we put together a pdf that includes trends, charts, tables, & more. Download this spotlight on CRM!
*These reimbursements are from Medicare data, and may not reflect hospital payments as well as other categories such as Orthopedics. This is due to the fact a greater number of individuals under the age of 65 are undergoing CRM procedures which would be private pay.
**CRM categories as defined by Curvo: Defibrillators, CRT-D, CRT-P, Pacemakers: Dual Chamber, Pacemakers: Single Chamber, Pacemakers: Leadless, Defibrillator Leads, Pacemaker Leads, LV Leads, Monitors.