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Hospitals' Outsourcing of Sterile Processing Expand Opportunities for Third Party Service Providers in the United States and Western Europe


News provided by

Frost & Sullivan

16 Feb, 2017, 13:09 GMT

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End-to-end service solutions and value chain integration will be vendors' key differentiators by 2022, finds Frost & Sullivan's Transformational Health team

SANTA CLARA, California, Feb. 16, 2017 /PRNewswire/ -- To ensure better compliance with infection control standards and top-notch management of sophisticated surgical instruments, United States (U.S.) and Western Europe-based healthcare centers are increasingly outsourcing central sterile supply department (CSSD), also known as sterile processing department (SPD), functions. Until 2022, third-party sterilization service vendors will focus on becoming end-to-end solution providers, covering CSSD layout design, tracking and managing workflow, cleaning, sterilization and logistics services. This will reshape the competitive landscape as original equipment manufacturers (OEMs) will race to include value-added services, such as equipment repair, inventory management and CSSD integration in their portfolio.

"Market players, especially sterilization and disinfection equipment manufacturers struggling with diminishing sales, are adopting aggressive strategies to bolster their service offerings and expand operations locally and internationally," said Transformational Health Senior Research Analyst Anuj Agarwal. "These measures include acquiring rivals to gain market share and joint ventures with local players to enter new markets. Bigger players will look at value-chain integrations to gain broader strategic advantage."

Third-party Sterilization Services for Care Providers in the US and Western Europe, Forecast to 2022, recent analysis from Frost & Sullivan's Transformational Health Growth Partnership Service program, explores service models in the U.S. and Western European markets, and factors driving OEMs to embrace a service-based model over the traditional product-centric approach. The research also details major market trends such as commoditization of standalone sterilization equipment business, operating room (OR) and CSSD integration, and replacement of managed services by integrated CSSD or OR solutions.

Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan's thought leaders.

By 2022 up to 45 percent of care providers in the U.S., United Kingdom, Italy, Germany and France will opt for third-party sterilization services for CSSD management. The surgical department's lack of awareness about the quality of services is hindering this adoption. To overcome this, service providers must build credibility and brand value.

"Third-party sterilization services are the first step towards better infection control and potentially open further avenues of growth for market participants by putting them in direct contact with key decision makers in care settings," observed Transformational Health Industry Principal Sowmya Rajagopalan.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Third-party Sterilization Services for Care Providers in the US and Western Europe, Forecast to 2022
K0FE-54

Contact:
Mariana Fernandez
Corporate Communications – North America
P: +54 11 4778 3540
F: +54 11 4777 0071
E: Mariana.Fernandez@frost.com

http://ww2.frost.com
twitter: @FS_Healthcare
LinkedIn: Transform Health

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SOURCE Frost & Sullivan

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