ResMed Inc. RMD recently moved a step ahead to strengthen its foothold in the field of home medical equipment (HME). Following the launch of a new and enhanced pharmacy suite catering to HME pharmacies earlier in March, the company has once again come up with a new development in this emerging field.
This time, the company introduced its automated ResMed ReSupply solution for all U.S. HME providers. ResMed claims this solution to improve patient satisfaction by increasing the long-term therapy adherence of those afflicted with sleep apnea.
What is HME?
Notably, HMEs are medical devices used on patients, whose care is being managed from home by their family members or any non-medical caregiver. With mounting healthcare costs, demand for these facilities is on the rise.
Efficiency of ReSupply Solution
Per a 2018 study, patients enrolled in an automated resupply program are 50% less likely to stop PAP (positive airway pressure) therapy within the first year. ResMed’s ReSupply Solution claims to be a more superior option to the automating ReSupply solutions as it enables patients to meet compliance requirements and can choose their preferred contact method.
Increased prevalence of chronic diseases, aging population and as stated earlier, the skyrocketing expenses of hospital admission are the major factors leading to HME market growth worldwide.
Going by the Allied Market Research data, the global home medical equipment (HME) market generated $23.36 billion in 2017 and is projected to reach $35.18 billion by 2023, thereby registering a CAGR of 7.1%. According to this report, North Americacontributed to more than one-third share of the company’s total revenues in 2017 and is expected to be dominant throughout 2023, banking on tailwinds like a large number of home healthcare equipment providers, better reimbursement policies and an improved healthcare infrastructure.
Earlier Development by ResMed
In March, Brightree, the wholly owned subsidiary of ResMed, announced a new and an improved pharmacy suite, which will cater to home infusion therapy providers and the home medical equipment (HME) pharmacies. Per ResMed, this better suite will help optimize business processes of the users by easily fulfilling their compliance needs and providing them with the highest quality patient care.
Bringing automation to the home infusion and HME pharmacy work flow, this suite is supposed to create a seamless connection with both the leading electronic health/medical records (EHR/EMR) and the third-party vendors to receive necessary patient data and process the medication prescriptions electronically.
Looking at the HME market’s huge prospects, the latest back-to-back developments by ResMed in HME can be considered well-timed and strategic.
In the past three months, shares of ResMed have underperformed its industry. The stock has declined 10.9% versus the 11.7% growth of the industry.
Zacks Rank and Key Picks
Currently ResMed carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Stryker Corporation SYK, Penumbra, Inc., PEN and Varian Medical Systems, Inc VAR, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker’s long-term earnings growth rate is projected to be 10%
Penumbra’s long-term earnings growth rate is predicted at 20.9%.
Varian’s long-term earnings growth rate is forecast to be 8%.
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