Research
Interview Synopsis

US orthopaedic practice consolidation

  • Public Equity
  • Healthcare
  • North America

There is major change afoot in the orthopaedic implants sector, according to Third Bridge Forum's Interview, with surgery likely to move from inpatient to outpatient settings in the coming years following approval from US healthcare regulators. 

Click on the hyperlink below to access the full Forum transcript.

Demographic Shifts and Improved Implants Prompt Growth in US Orthopaedics Sector

A former executive at Proliance Surgeons explained that the surgery required for hip and knee operations is less invasive than a few years ago, meaning patients need less time in hospital. 

However, such a move could affect the pricing of orthopaedic surgery, depending on Medicare coverage and the age of the patient. 

The former executive said that many companies in the orthopaedic market were “nervous” about the implications if Medicare did not cover the full costs of an implant. He said it could lead to “tiering” of treatments and implants, with patients over 65 and covered by Medicare receiving implants expected to last 20 years and younger patients given longer-lasting implants. 

In addition, surgery centres were also likely to come under pressure, particularly those that specialised in orthopaedic procedures, he said. 

The US Census Bureau forecasts the country’s older population (65 and above) to grow by approximately 10 million between 2020 and 2025 – a 16% increase on the 62.8 million aged 65 or older in 2020. The interviewee believes the orthopaedics market will grow at a similar rate. 

“There will definitely be growth in orthopaedics, given the ageing population… the more active population, the fact that we’re living longer and are more active into our senior years,” he said. In addition, improved implants that have a longer life mean people are less likely to put off surgery to avoid having to have the surgery done twice. This could make the sector attractive to private equity investment, according to the former Proliance Surgeons leader. 

To access all the human insights from Third Bridge’s US Orthopaedic Practice Consolidation Interview, click below to view the full transcript. 

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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