MRI Industry

Industry Trends:

The full universe of the medical imaging industry (MRI, MRA, PET, CAT, X-Ray) generates upwards towards $100 Billion annually. Industry trade groups such as America Health Insurance Plans expect this market to double in the next five years.

There are several catalysts for this explosive growth. These contributing factors are:

Ø  An aging population demanding more medical services (baby boomer effect)

Ø  Potential increased demand of over 30 million more people added to insurance rolls by recent Health Care Legislation

Ø  MRI imaging has become a benchmark standard for medical diagnosis

Ø  Open Air MRI systems have become the preferred choice by both physicians and patients, handling over 50% of all types of scans in marketplace

Ø  Open Air MRI systems offer advantages of lower purchase and operational costs while offering exceptional quality for patient experience.

The industry offers great opportunity due to 3 major factors: Regulatory change, Reimbursement models, and Consolidation potential.

Increased demand will come as the diagnostic tool of choice for Physicians has increasing become the MRI. Radiation exposure has become a health related issue for the imaging industry as a whole, it is therefore more attractive to have patients use the MRI as a diagnostic tool. The many causitive factors that will generate increased demand for MRI's will explode the growth opportunity in this sector.

Due to increased regulatory requirements, increasing costs with lower profitability and other issues facing the industry, the need for innovative solutions has never been greater. The opportunities in this sector will exponentially increase for those who provide these innovative solutions. The fragmented nature of the industry opens the doors for exceptional consolidation opportunities and the effectiveness of these consolidations in rural areas offer an even greater opportunity.

Investors need to search for innovative and forward thinking companies who are providing fast growth alternatives in this vastly growing market. The same old way of doing business in the imaging industry is rapidly fading and the remains find huge players who are heavily debt ladened and stuck with aging technology. The new model will be sleek and fast and able to move quickly with little to no debt while providing a solution that is pleasing to both Physicians and patients. In the coming days, weeks and months I will help identify areas of concern and opportunity.