Will Orthopedic Robotics Contribute to Ambulatory Surgery Centers’ Success?

Oct 16

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For the past decade, surgical procedures have gradually been transitioning from hospital operating rooms to ambulatory surgery centers (ASCs) to help reduce healthcare costs and improve operational efficiencies. Interestingly, this transformation has coincided with significant growth in the availability of orthopedic robotics and enabling technologies.

These concurrent market shifts have induced natural curiosity about ASCs’ impact on orthopedics—specifically, the ongoing dynamics of companies in the industry, their technologies, and their ability to contend and expand within the ASC market now and in the future. It may be assumed that any orthopedic company that cannot successfully compete in the ASC market may disappear from the U.S. market (in the same form) in 10 years. We believe the growth of orthopedic robotic procedures in ASCs is helping these centers boost the growth of minimally invasive outpatient procedures.

It would be nearly impossible to measure ASCs’ potential impact on the industry, however, without first exploring the factors contributing to its >10% compound annual growth rate.

Key ASC Growth Factors: Cost, Convenience, and Technology

An ASC’s out-of-hospital setting offers a cost-effective alternative to traditional operating rooms, as procedures are often 35% to 50% less expensive than those that take place in hospitals. Payers and patients tend to gravitate toward ASC procedures if it ultimately saves them money.

Similarly, with shorter wait times and the likelihood of returning home within hours of the procedure, ASCs provide a more convenient and efficient surgical experience. It has been often noted that “…hospitals are a great place to go to die…” due to their infection rates. Not surprisingly, ASC infection rates are significantly lower than hospitals because patients leave the medical center quickly (usually same day).

Cost effectiveness and efficiencies aside, ASCs foster technological innovation that benefits both orthopedic implant developers and the centers themselves. The solutions being developed address the precision necessary in minimally invasive techniques and provide them in a footprint that is viable and affordable for the ASC.

Driven by technological advancements, an aging world population, and the increasing demand for minimally invasive surgical procedures, the orthopedic robotics market is experiencing unprecedented traction. Consequently, adoption of these new technologies is reshaping surgical practices in orthopedics, with a boost from private equity.

Orthopedic Robotics’ Impact on the ASC Market

Robotics is playing a crucial role in ASCs’ expansion and success, especially in orthopedic surgery. The integration of robotic systems in ASCs is transforming these facilities into centers of excellence for outpatient surgery.

Robotic systems enable ASCs to offer a broader range of procedures, including complex orthopedic surgeries that were previously limited to hospitals. This expansion is not only increasing the volume of surgeries performed in ASCs but also elevating their reputation as high-quality surgical centers.

Additionally, the precision and consistency offered by robotic systems lead to better surgical outcomes, including fewer complications, shorter recovery times, and higher patient satisfaction. These improvements are crucial in the ASC setting, where patients are usually discharged the same day as their surgery.

Because they are more precise and consistent than traditional procedures, robotic-assisted surgeries typically are more efficient, with reduced operative times and quicker patient turnover. This efficiency enables ASCs to perform more surgeries within the same timeframe, increasing their revenue potential and making them more attractive to surgeons and patients alike.

Robotic technology is truly becoming a transformative force in orthopedic surgery by offering improved precision, enhanced patient outcomes, and greater efficiencies. These systems have become increasingly sophisticated and are now integral to various orthopedic procedures, including spinal surgeries, joint replacements, and arthroscopic interventions.

Driving the growth of robotic-assisted orthopedic surgery are technological advancements, patient demand, and surgeon adoption.

Evaluating the Major Players and Their Technologies

A handful of key players currently dominate the orthopedic robotics market, and each of them contribute to the ongoing evolution of surgical practices through their respective technologies (and some occasional “price bundling”). A brief overview of the companies and their robotic systems follow.

Stryker Corporation/Mako System: It’s not surprising the top orthopedic device company has the leading platform in robotic-assisted orthopedic surgery, specifically in total knee, partial knee, and hip replacements. Helping to improve Stryker’s marketshare (as if it needed any help), Mako has been widely adopted in ASCs and is driving growth in the outpatient orthopedic procedure market.

Zimmer Biomet/ROSA Robotic System: ROSA is designed for both knee and spine surgeries, offering a high degree of flexibility and adaptability. Its user-friendly interface and versatility have made the system a popular choice in ASCs.

Johnson & Johnson’s DePuy Synthes/VELYS Robotic-Assisted Solution: Specifically designed for knee replacement surgeries, VELYS’ compact design sets it apart from its competitors, making the system well-suited for ASCs’ space constraints.

Smith+Nephew/NAVIO Surgical System: Smith+Nephew’s NAVIO system is a handheld robotic solution that offers real-time intraoperative feedback without the need for pre-operative computed tomography scans. Moreover, NAVIO’s portability and ease of use make it a valuable tool for a wide range of orthopedic procedures.

Medtronic/Mazor X Stealth Edition: Although initially focused on spine surgeries, Medtronic’s Mazor X is increasingly being used in joint orthopedic procedures. The system combines robotic precision with advanced navigation and 3D imaging, enabling surgeons to perform complex surgeries with greater accuracy.

Orthopedic Robotics and ASCs—Ideal Partners

The ASC market for orthopedic robotics is expected to steadily grow and be shaped by various key trends in the coming years, including increased adoption of robotic-assisted solutions, robotic systems’ overall market growth, expanded indications, integration with artificial intelligence and machine learning, regulatory decisions, and reimbursement developments.

Stryker, Zimmer Biomet, and Smith+Nephew currently hold significant market share in the orthopedic robotics space but the trio could relinquish their supremacy to other players as the competitive landscape evolves. In a macro shift for the ASC sector, major orthopedic robotics companies could hold a combined market share of more than 70% in the coming years, industry estimates predict.

Conclusion

The orthopedic robotics market is rapidly evolving, with far-reaching implications for the U.S. ASCs. The integration of advanced robotic systems into orthopedic surgery is not only enhancing surgical precision and improving patient outcomes but also driving ASCs’ expansion. As the technology advances and becomes more accessible, the ASC market is expected to experience steady growth, with robotics playing a central role in shaping the future of outpatient orthopedic surgery.

The future is bright for ASCs and orthopedic robotics, as the potential exists for significant market expansion, improved patient care, and a broader range of surgical offerings. As more ASCs adopt robotic-assisted surgical systems, the orthopedic robotics market is set to become an even more integral part of the healthcare landscape, heralding a new era in outpatient surgery.

MORE FROM THESE AUTHORS: Insights Into Top Orthopedic Company Dynamics

Florence Joffroy-Black, CM&AA, is a longtime marketing and M&A expert with significant experience in the medical technology industry, including working for multi-national corporations based in the United States, Germany, and Israel. She currently is CEO at MedWorld Advisors and can be reached at florencejblack@medworldadvisors.com.

Dave Sheppard, CM&AA, is a former medical technology Fortune 500 executive and is now focused on M&A as a managing director at MedWorld Advisors. He can be reached at davesheppard@medworldadvisors.com.