Market Challenges And Opportunities

North America dominates the market due to active shift towards alternative payment models in the U.S. However, Asia Pacific is expected to offer lucrative opportunities owing to improving accessibility and universal healthcare initiatives in countries like India, China, and Malaysia. European countries are also incentivizing providers to deliver more cost-effective and coordinated care, thus benefitting the per-encounter model.

Lack of data infrastructure and healthcare fragmentation pose challenges for providers to effectively transition to this payment approach. Reimbursement uncertainty is another potential restrain as providers face financial risks if patient visits exceed budgeted rates. However, growing focus on patient-centered care, healthcare and multi-stakeholder partnerships will help overcome such restraints.

Upfront costs are capable revamping revenue cycle functions and help in deterring some providers, and the per-encounter model aligns incentives across the care continuum and rewards value over volume. It has the potential to lower unwarranted variation and healthcare costs.

Global Per-Encounter Medical Market Drivers:

Rising prevalence of chronic diseases: The rising prevalence of chronic diseases such as cardiovascular diseases, cancer, diabetes, and musculoskeletal disorders is increasing the demand for regular medical check-ups, diagnostic testing, and surgical procedures. This is driving the adoption of single-use per-encounter medical devices like syringes, needles, Intravenous catheters, and drainage bags used during these procedures. For instance, on September 2023, according to the data published by World Health Organization (WHO), the cardiovascular diseases account for most noncommunicable diseases (NCDs) deaths, or 17.9 million people annually, followed by cancers (9.3 million), chronic respiratory diseases (4.1 million), and diabetes (2.0 million including kidney disease deaths caused by diabetes).
Growth in geriatric population: The growing geriatric population across the globe is a key factor fueling the demand for per-encounter medical devices. Older people are more susceptible to acute and chronic diseases, thus leading to increased doctor visits and hospitalizations. This expands the patient pool undergoing diagnostics tests and treatments, thereby driving the adoption of per-encounter devices like prefilled syringes, test kits, and surgical blades. The rising elderly population is expected to boost market growth.
Technological advancements in medical devices: Continuous advancements in medical device technologies are leading to new product developments in the per-encounter devices market. Advanced materials like engineered plastics, silicone, and metal alloys allow improved designs for single-use devices. Technologies like 3D printing facilitate customized device fabrication. The integration of electronics leads to smart devices like auto-disable and retractable syringes. Such technological advances improve performance, safety and drive new product adoption among end users.
Favorable government regulations: Supportive regulations by governments and healthcare agencies regarding medical device standards and patient safety are conducive to the growth of single-use per-encounter devices. Mandates for safe injection practices, proper sharps disposal, and transition to high-quality devices boost market prospects.

Global Per-Encounter Medical Market Opportunities:

Emerging markets expansion: Developing economies in Asia Pacific, Latin America, and Africa represent significant growth opportunities for per-encounter device manufacturers due to improving healthcare infrastructure and increasing ghealthcareexpenditure. Large underserved patient populations and increasing access to healthcare services in these regions will fuel the adoption of syringes, catheters, surgical tools and Intravenous therapy products. Market players are expanding their footprint in emerging markets through distribution partnerships and localized product offerings.
Rising home healthcare services: The growing adoption of home healthcare services such as home dialysis, infusion therapy, and remote patient monitoring is creating opportunities for single-use medical devices tailored for home use. Devices which are designed for easy self-administration, pre-filled with medications, and integrating connectivity for telehealth allow convenient at-home treatment. Market players are developing specialized devices for home healthcare applications to tap this high-growth market segment.
Development of eco-friendly products: Rising focus on sustainability among healthcare providers is leading to increasing demand for eco-friendly single-use medical devices made from biodegradable materials and recyclable packaging. Devices like syringes, tubing, and wound care products which are made using renewable feedstock and following end-of-life disposal guidelines allow healthcare facilities to lower their environmental impact. This presents an opportunity for manufacturers to develop innovative eco-friendly per-encounter devices.
3D Printing of medical devices: The adoption of 3D printing technology for on-demand fabrication of patient-specific single-use medical devices that are customized to anatomy and surgical needs supports market growth. 3D printing of per-encounter devices like surgical tools, plastic components, and dental accessories facilitates onsite-manufacturing and cost-efficiency for healthcare facilities. Device manufacturers leveraging 3D printing can provide customized offerings to gain market share.