Sleep growth appears to be slowing, according to the second quarter 2013 survey of sleep providers, conducted by HME Business magazine and Mizuho Securities USA. Respondents to the twice-yearly survey indicated that HME sleep revenue growth could slow over then next 12 months.
Moreover, the study also indicated that Round Two contract winners plan to negotiate lower prices; Medicare re-supply policy changes have created a small drag on mask sales; and price declines are expected for flow generators and masks.
Slower Sleep Revenue Growth
According to the survey, HME providers reported an average 5.5 percent growth in their sleep revenue over the last 12 months. This growth is the same as reported in a HME Business Magazine and Mizuho Securities USA survey administered in the fourth quarter of 2012.
On average, respondents of the latest survey say that they expect their sleep revenue to grow by 2.5 percent in the next 12 months, which is down from 3.8 percent, which was reported in the fourth quarter 2012 survey. Some more key findings:
- Of the respondents of the latest survey, 17 percent say they suffered a decline in their sleep revenue in the last 12 months, while 26 percent expect a decline in the next 12 months. HME Business Magazine and Mizuho Securities USA suspect that the growth outlook has worsened from the last survey because of the impact of competitive bidding.
- About 37 percent of respondents reported sleep revenue growth in the last 12 months between 0 and 9 percent, while about 2 percent reported a decline in growth by 20 percent to 29 percent.
- About 29 percent reported sleep revenue will grow in the next 12 months between 0 and 9 percent, and about 2 percent report an expected decline in growth by 20 percent and 29 percent.
- About 2 percent predict growth by 30 percent or more in the next 12 months.
Also, respondents view the economy as a hindrance to sleep revenue growth. On average, survey takers expect the sluggish economy to reduce their sleep revenue by 1.6 percent over the next 12 months compared with a 1.5 percent reduction reported in the fourth quarter 2012 survey.