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Orthopedic devices are medical devices used to replace damaged or misplaced bone in order to improve the skeletal function and minimize pain due to problems associated with an injury. Implants are mainly manufactured from stainless steel and titanium alloys for more durability and strength, though biomaterials such as ceramics, glass and polymers are also used.
Medical science breakthroughs have led to the rapid development of orthopedic devices invented to treat orthopedic injuries and diseases like osteoporosis and osteoarthritis, by replacing joints that have deteriorated. Reconstructive joint surgery requires highly specialized surgeons and involves the modification of the affected area of the joint and the implantation of one or more manufactured components. The primary orthopedic reconstructive targets are joint, with hips and knees being most commonly repaired with orthopedic implants. Stability, mobility and pain relief are the primary benefits of implants.
North America is responsible for the largest share of the global orthopedic device market, prompted by increased investments in healthcare infrastructure and the demand for quality services. The Asia-Pacific region is expected to grow at the highest compound annual growth rate in the future due to improved economic growth, government funds being dedicated to product development and innovation and increased healthcare awareness by the population.
Zimmer Biomet, Stryker, Smith and Nephew, Medtronic, Corin, Nuvasive, Depuy Synthes/Johnson & Johnson, Orthosensor, Integra Lifescience, Globus Medical, B.Braun Melsungen AG, Waldemar LINK GmbH & Co. KG, Exactech, Tornier and DJO global are the major manufacturers of orthopedic devices. Depuy Synthes maintains the major orthopedic market share, followed by Zimmer Biomet and Stryker. Medtronic is one of the leading companies in the market producing spinal implants. Zimmer is the market leader in the hip and knee orthopedic implant market given the success of it M/L taper hip prosthesis with Kinectiv modular neck technology, which gives surgeons a wide range of options to achieve a more accurate fit of the joint replacement to the hip. Many of these companies have pursued strategies such as mergers and acquisitions, collaborations, partnerships and joint ventures to hasten growth in the orthopedic device market.
Innovative product designs and advancements in robotics, computer-navigated surgeries, smart implants, nanotechnology, 3D printing, biologics and tissue engineering will contribute to market growth, whereas the high cost of implants and medical reimbursement issues may hinder it. The proliferation of smaller manufacturers with highly innovative products and designs will further spur growth of the market.
Most notably, global hip and knee orthopedic surgical implant markets will achieve rapid growth given the aging of the world population. Presently, approximately one million Americans undergo total knee or hip replacements annually. However, complications cause around one in twelve patients to return to the hospital within 90 days. To incentivize hospitals to perform at a higher level, the Centers for Medicare and Medicaid Services (CMS) launched the Comprehensive Care for Joint Replacement (CJR) program in 2016 to support better and more efficient care for beneficiaries undergoing the most common inpatient surgeries for Medicare beneficiaries — hip and knee replacements (also called lower extremity joint replacements or LEJR).
There were more than 400,000 hip and knee replacements covered by Medicare in 2014, costing more than $7 billion for hospitalization. Unfortunately, the rate of complications such as infections or implant failures after surgery can be more than three times higher at some facilities than others, increasing the chances that the patient may be readmitted to the hospital, with the average Medicare expenditure for surgery, hospitalization and recovery ranging from $16,500 to $33,000.
The CJR program is designed to hold certain hospitals financially accountable for the quality and cost of a CJR “episode of care” and incentivizes increased coordination of care among hospitals, physicians and post-acute care providers. The “episode of care” begins with an admission to a participant hospital of a beneficiary who is discharged for a major joint replacement or reattachment of lower extremity with or without major complications or comorbidities, and ends 90 days post-discharge in order to cover the complete period of recovery for beneficiaries. The episode includes all related items and services paid under Medicare Part A and Part B for all Medicare fee-for-service beneficiaries, with the exception of certain exclusions.