This article is from in the April 2008 issue of DOTmed Business News. A list of registered users that provide sales & service can be found at the end.

Arthroscopy is a flourishing area of the medical equipment industry. Mr. John Dawoodjee, General Manager of Advanced Endoscopy Devices Inc., in Canoga Park, CA, says arthroscopy is "recession-proof." Arthroscopic devices are vital to sports medicine, orthopedics and even veterinary use. Sports injuries are on the rise in children and adolescents. Older generations are remaining active longer, incurring athletic-type injuries and looking for treatment that allows them to maintain their lifestyle with a short recovery time. J. Whit Ewing, M.D., Executive Vice President of the Arthroscopy Association of North America (AANA) in Rosemont, IL says arthroscopy procedures are significantly better than ten years ago. Success rates are higher, and complication rates are lower. The overall success rate of the most common arthroscopic procedure on the anterior cruciate ligament is estimated at 85-90%. Dr. Ewing also sees a continuing expansion of arthroscopy through new procedures of treating defects in the surface of the joint through regeneration of tissue. These factors contribute to the rise in arthroscopy equipment sales.

Arthroscopic instruments "fly off the shelf," says Mr. Mitchell Guier, Owner of North American Medical in Sweet Springs, MO. The demand for repair services is also growing appreciably. Arthroscopy components and parts account for approximately a quarter to a third of overall product purchases, according to companies specializing in preowned/refurbished devices. The same percentage applies to dealers in new equipment, such as Dawoodjee. The U.S. market for arthroscopic equipment was estimated to have reached a staggering one billion dollars in 2007. Mr. Cornel Cacuci, Manager of Apex Endoscopy, Inc. in Lawrenceville, GA says his repair/refurbishing business is 40% arthroscopy related. For OEMs, CONMED has reported a 31% increase in its 2007 arthroscopy equipment sales over 2006 numbers. Of Smith & Nephew's total 2006 sales, 22% were endoscopy/arthroscopy; this figure grew 7% in 2007.

The OEMs and ISOs have a cool relationship

There are several major OEMS across the U.S., and a few overseas. The prominent OEMS include Stryker, Olympus, CONMED, Linvatec, Storz, R. Wolf, Smith & Nephew, Dyonics, and Arthrex. Pre-owned equipment dealers note OEMS tend not to be too friendly with third-party ISO vendors and refurbishers, as the ISOs detract from new equipment sales. Other OEM concerns include the use of components within a scope that are not the original manufacturer's brand-which might reflect poorly upon the manufacturer if the repair/refurbishment is substandard. However, companies in the repair/refurbish field say the selection of reputable companies technicians eliminate those problems. A few OEMS will have a limited relationship with certain dealers, using third-party servicers as a secondary repair facility.

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