NEW YORK – HME providers saw a 6.3% decline in their sleep patient volume in the last twelve months, but they expect double-digit growth in the next twelve months, according to the third quarter HME Sleep and Oxygen Survey from Needham.
The decline in sleep is mainly due to a shortage in flow generators. The eventual re-entry of Philips into the flow generator market appears likely to come mostly at the expense of smaller competitors rather than ResMed, according to the survey.
Respondents indicated that they expect to permanently shift an average of 46.6% of their Philips Respironics flow generator purchases (down from 58.4% in the 1Q22 survey) and an average of 16.6% of their Philips Respironics mask purchases (down from 30.2% in the 1Q22 survey) to other companies due to the recall.
Mask price increases accelerated, while flow generator price increases eased, according to the survey. Respondents indicated flow generator prices increased by 10.7% in the last 12 months vs. an 11.7% increase in 1Q22 survey.
“We believe that the price increase was driven primarily by the Philips Respironics recall and supply chain challenges, which have severely limited the supply of flow generators,” stated the survey. “While mask supply isn't as limited as flow generator supply, we believe that the flow generator shortage may be affecting mask prices since the products are often sold together.”
For oxygen, providers expect their POC purchases to nearly double in the next twelve months. Inogen looks likely to gain share in the HME channel primarily at the expense of Philips. Precision Medical had the highest-rated POC, followed by the OxyGo private label POC.