Business Overview (Introduction)
The medical and clinical diagnostic industry comprises businesses and laboratories that offer analytic or diagnostic services including body fluid analysis and diagnostic imaging that aid the medical profession, and patients following a referral from health care professionals.
Medical laboratories are classified based on the type of services they render such as bacteriological laboratories, blood analysis laboratories, medical pathology laboratories, mycology health laboratories, parasitology health laboratories, etc.
The diagnostic imaging industry, on the other hand, is a huge segment by itself and provides services for producing images, via diagnostic equipment, of the patient on referral from health professionals to help with disease diagnoses. Imaging laboratory set-ups include CAT (computerized axial tomography) scanner centers, dental X-ray laboratories, mammogram or breast imaging centers, radiological laboratories, etc.
The world market for diagnostics was valued at $22.47 billion in 2000 and was expected grew at an annual rate of about 6 percent to $28.63 billion by 2005. Around the year 2002, Japan, Western Europe and North America, made up for 85% of the world's in-vitro diagnostics (IVD) market. However, this figure was expected condense to about 75 percent by 2005, due to higher market growth rates within emerging economies such as China, India, Indonesia, and Japan.
The US Diagnostic Equipment Industry Overview
The US diagnostic equipment market is the world's largest, and was valued at $13.5 billion in 2002. Over the years, emergence and growth of managed health care has led to reduced costs in addition to raising the demand for efficient operation within clinical laboratories. Managed care penetration by enrollment for the year 2009 stand at 10.4 million for Medicare, 28.5 million for Medicaid, and 115 million for commercial managed care plans.
As of now, the clinical diagnostic laboratory testing market has a projected value of $98.4 billion in revenue by 2017. The drivers for this growth are expected to be the expanding markets for genetic testing, esoteric testing, in addition to increases in consumer driven health care, and an aging population with an greater access to health care services. Although, the clinical laboratory industry has been affected due to the economic slowdown via declining drugs-of-abuse testing, the effect has been offset to some extent by a modest increase in volumes, a steady pricing environment, and a move towards high-value esoteric testing.