Aging Baby Boomers and Maturing Technology Will Shock Cardiovascular Care Services.

Business Editors/Health/Medical Writers

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SAN FRANCISCO--(BUSINESS WIRE)--March 9, 2004

Health Technology Center Identifies Technology Trends Shifting

Cardiovascular Care Away From Lucrative Inpatient and Invasive Focus

The $140 billion a year U.S. cardiovascular care market will be rocked by changes over the next ten years as baby boomers enter the age range with the highest incidence of cardiovascular disease (CVD), according to a new report by the Health Technology Center (HealthTech).

Cardiovascular care is changing dramatically. In spite of increased demand for services, substantial declines in hospital-related revenue may occur as consumer expectations, longer life-spans, and new diagnostic and treatment technologies shift care away from the hospital and major surgery toward early intervention and management of CVD in outpatient settings, according to HealthTech's latest clinical focus report, "The Future of Cardiovascular Services."

"Hospital-based cardiac care, and especially cardiac surgery have been significant revenue sources for health systems for the past 20 years," said Molly J. Coye, MD, HealthTech CEO. "However, providers are increasingly diagnosing, monitoring and managing CVD with technologies that keep patients out of the hospital and living longer."

(The median age in the U.S. has reached 35.3 years, the highest in history, according to census data. Projections are that the U.S. population will increase 8 percent from 2003-2013, while the 60-85 year old group will increase by 21 percent. CVD is the principle cause of death in the U.S., responsible for 39 percent of all deaths in 2000.)

Historically, cardiovascular care has been well reimbursed by public and private payers and often served as a cross-subsidy for other hospital services. Over the past decade, stand-alone cardiac care hospitals have challenged full-service hospitals and health systems for this relatively high-margin business. In the future, however, capital investment in new, less invasive technologies, coupled with restrictive reimbursement policies, will pose severe financial barriers for health systems seeking to tap the booming market for cardiovascular care.

"Overall revenue per patient may plunge as hospitals' cardiovascular service lines perform these newer and more poorly reimbursed procedures on a greater number of patients," said Coye.

According to the HealthTech report, other key developments underway include:

-- More patients will survive acute cardiac episodes, increasing

the chronic disease population.

-- Boomers will increasingly seek screening tests, leading to

earlier intervention and in some cases preventing clinical

illness.

-- Imaging and genetic testing advances will allow earlier, more

accurate disease diagnosis, facilitating earlier treatment and

improved outcomes.

-- Minimally invasive surgery and drug-eluting stents will reduce

the need for inpatient care.

-- Remote patient management technologies (small devices that

monitor patients' health at home) will keep patients at home

and out of the emergency department and the hospital.

-- Imaging technologies will be utilized earlier, more often, and

in more distributed settings.

The full report, available to HealthTech partner companies, provides detailed analyses of the clinical, financial, information technology, facilities design and workforce issues that health systems must address as inpatient cardiac services cease to be a top revenue generator.

HealthTech is a non-profit research and education organization that develops objective forecasts, innovative decision-making tools, and facilitates a learning network of experts for the benefit of its partner organizations: healthcare systems, hospitals, safety-net providers, government agencies, and others that all face critical decisions on emerging technologies, rapidly shaping healthcare's future.