Sector Report

Here is our “deep dive” market insight of the infusion therapy marketplace after a series of discussions with home and alternate site infusion therapy providers and investors. We view home and alternate site infusion therapy as one of the most attractive verticals in healthcare services with superior growth driven by therapeutic innovation, stable reimbursement, and other factors that we have been tracking. Labor costs/shortages are an ongoing concern for many providers we spoke with. However, we see opportunities to generate labor efficiencies through the adoption of artificial intelligence and information technology, the deployment of ambulatory infusion centers, and the use of “smart” pumps and devices.

Key Takeaways

1. The home and alternate site infusion therapy space should be able to sustainably generate superior growth versus the broader healthcare services space. In fact, many providers are generating double digit organic revenue growth coupled with synergies from acquisitions. We see this growth being sustainably driven by patient preferences and the cost advantages of using home-based infusion therapy (for managed care and at-risk provider organizations).
2. Therapeutic innovation will continue to be a growth driver. By our analysis, almost half of the new drugs introduced over the past three years require an infusion (or subcutaneous injection) under the supervision of a medical professional. Looking ahead, the infusion providers we spoke with are particularly optimistic for new therapies for neurological diseases, such as Alzheimer’s Disease, Parkinson’s Disease, and/or multiple sclerosis.
3. We see a stable reimbursement environment for home and alternate site infusion providers. In fact, we think providers have good reason to be optimistic for a legislative “fix” in how CMS reimburses for home infusion in Medicare Part B. This, in turn, could open-up a sizable new opportunity in the Medicare population.
4. Labor costs/shortages are an ongoing concern for many of the infusion providers we spoke with. However, we see opportunities to generate labor efficiencies through the adoption of artificial intelligence and information technology, the deployment of ambulatory infusion centers, and the use of “smart” pumps and devices.
5. Economies of scale is key in the infusion space, and we have evaluated a variety of consolidation strategies. All have merit, but we ultimately think staying focused on building a national platform in home and alternate site infusion therapy (with integrated specialty pharmacies) allows for greater operational excellence over time and maximizes the flexibility to work across all managed care networks without channel conflicts.

In the dynamic healthcare industry, staying ahead of trends is essential for informed decision-making and seizing opportunities. Please reach out to our research team for more information.