MSP 9801 - US Medical Telemetry Markets Report

Table of Contents

List of tables and Figures VI

Copyright Notice VIII

Executive Overview 1

Research Methodology 1

Industry Studies are Live Documents 1

Intended Audience 2

Scope of Report 2

Vendor Profiles Included 2

Product Profiles 3

Expanded Use of Telemetry Systems 3

Therapies and Diagnosis Expanding 3

Telemetry Helps Avert Unwarranted ICU Admissions 4

Telemetry Replacement Cycles 4

Frequency Band for New Patient-Worn System 4

Proposed FCC Rule Changes 4

Portables Utilizing Wireless LANs Increasing 4

Telemetry Gets 12-Lead Monitoring 5

Telemetry Applications Expanding 5

Benefits of Medical Telemetry 5

Medical Telemetry Market Size 6

Telemetry Expands World Wide 6

Telemetry Monitoring Undergoes a Paradigm Change 7

Premier Selects Two Vendors for Monitoring Contracts 8

Where They Are and Where They Are Going 8

Historic Telemetry Market Evolution 9

Analog Systems Established the Market 9

Digital Telemetry Systems Emerged in 1990s 9

Which Frequency Band - VHF or UHF? 9

VHF Operation and Challenges 9

UHF Design Challenges 10

In Summary 11

Components of Hospital Telemetry Market 13

Patient-worn Transmitters 13

Bidirectional Transceiver Introduced as Patient-Worn Devices 13

Patient-Worn Vendors Move to 900 MHz. 13

Battery Capacity Limits Operating Time 13

Portable Monitors with Wireless LANs 14

Wireless Links For Staff POC Terminals 14

Personal, Portable Nursing Stations To Emerge 14

Overall Potential in US Market 15

Average Size of Telemetry Systems Increasing Dramatically in US 15

Bandpass - ECG Waveform Dilemma 15

Overall Market Increasing, US Share Increasing Disproportionately 15

Emergence of Spread Spectrum Telemetry Technology 16

1990s - Ushers in the Decade of Change 16

Migration from VHF to UHF to Spread Spectrum Underway 16

More Parameters Monitored 17

New Parameters Introduced for Non-Cardiac Patients 18

Spread Spectrum Telemetry Technology Developed for Military Applications 18

Emergence of Spread Spectrum Wireless LAN Designs 20

New Technology Means New OEM Suppliers 20

Issues Regarding Use of SS Technology in Medicine 21

Markets Driving SS Development 21

SS Wireless Device Availability Expanding 22

Implications for Telemetry System Replacements and Upgrades 23

Vendors Modify Core Telemetry Technologies 23

European Telemetry Markets Impact Future US Products 26

Harmonization with Telemetry Requirements in the EC and Japan 26

Integration of Existing Markets 29

Patient-Worn System Battery Issues 32

Length of Stay/Battery Life Trade-Off 32

Operating Times of Various Suppliers 33

Computing Battery Operating Costs 33

Additional Parameters 34

Pulse Oximetry & Non-Invasive Blood Pressure Drive the Market 34

Summary of Desirable Transmitter Features 35

Telemetry Enhances Patient Mobility 37

Telemetry in Recovery Areas 37

Patient-Worn Telemetry - Product Considerations 39

Competitive Positions in the Segment 39

Product Costs 40

Big Discounts on HP Systems - Pre Viridia 41

Nihon-Kohden - Bottom Basement Pricing 41

Protocol Augments Propaq 41

Telemetry Growth Potential 43

Telemetry Central Stations Merge with Hardwired Centrals 44

Introduction of "Full Disclosure" ECG Products 45

Full Disclosure Replaces Holter Monitoring, Reducing Costs 46

Automated Arrhythmia Processing 46

Single-lead Versus Multi-lead Arrhythmia Processing 46

ST Segment Monitoring 47

Multi-Lead (Vector) Displays Evolve 47

Patient Location Capabilities - Not Mandatory 48

HP First to Use Cellular Paging for Nurse Alert 48

First Viable Patient Location System Introduced by Marquette 48

ECG Display at Bedside 48

Dramatic Change in Central Station Configurations 49

Distributed, Hand-Held Central Station on Horizon 49

Telemetry System Nursing Staffing Requirements 49

Clinical Information Systems Workstations 50

Configuring Your System 50

Signal Compression 52

Identification Codes 52

Bedside Waveform Displays 52

Antenna System Design 53

Tunable Systems in the VHF Band 54

Multi-Path Interference 54

System Frequency Response 54

Locating Patients 55

Personal, Portable Central Stations Emerge 55

Increase in Size of Telemetry Units 55

Multi-Band Telemetry Systems 56

Portable Monitors With Wireless LANs 57

Thermo/MDE Created This Market 57

Major Portable Monitor Companies 57

Applications for Portable Monitors 58

Direct Admit to General Ward or Sub-Acute Units 58

Early Discharge from ICU 58

Transport for Diagnostic Testing 58

Patient Holding in Emergency Departments and Other Areas 59

Characteristics of Portable Monitors 59

Portable Monitor Display Technology 60

Telemetry Transceiver Capabilities 60

Battery Operating Time -- How Much is Enough? 61

Important Suppliers of Portable Systems 61

Portable Monitor Product Requirements 62

Creating A Waveform Without Surveillance Lapses 63

Prep Time - Transport Monitor Scenario 63

Telemetry Segment Market Forecasts 65

US Economy Enters Recession in Next Two Years 65

Rate of Medical Inflation to Moderate, Then Recover 65

Replacement Cycle Will Lengthen 65

Introduction of New Technology Drives Up Average Selling Prices 65

Patient-Worn Systems for Cardiac Related Patients 66

Other Patient-Worn Telemetry Markets 66

Vendor Profiles 69

Vitalcom (Formerly Accucore) 69

Market Conditions 69

THE VITALCOM SOLUTION 69

Corporate History 70

Previous Sales/Marketing Strategy 70

CUSTOMERS 72

The New Strategy - "Back to the Future" 72

Interfaces to Merlin and Eagle 73

Product Innovations in Patient-Worn Telemetry Systems 73

Core Technologies 74

Outlook 75

Criticare Systems 77

Corporate Background 77

Position in the Market 77

History of Innovation 77

Recent Introductions & Established Products 78

Outlook 81

J&J Medical (formerly Critikon) 85

Corporate Background 85

Position in the Market 85

Recent Product Introductions 85

Established Products 86

Datascope 89

OEM Relationships 89

Corporate History/Background 89

Product Innovations 90

Cardiac Assist Devices 90

Hemostat Products (Europe) 91

Patient Monitoring Products 91

FUKUDA DENSHI 95

Corporate History 95

Position in the Market 95

Recent Product Introductions 95

Established Products 96

DS-502 96

DS-503 96

DS-3300 Modular Monitoring System 96

Video Technology 97

User Interface 97

Model IB-3300 Module Box 97

Model AU-3310 & 3320 Recorders 97

System Capabilities 97

Outlook 97

Hewlett-Packard 98

Corporate History 99

Market Position 100

Telemetry Products 100

Other Established Product 106

Significant Corporate Innovations 107

Component Monitoring System - Four Bedside Flavors 107

Life Sensing Instruments, Inc. (LSI) 115

Position in the Market 115

Products Offered 115

MARQUETTE Electronics 117

Corporate History 117

Position in the Market 117

Overall Product Line 119

Recent Product Additions 119

Established Products 123

Corporate Outlook 132

Medical Data Electronics (MDE)/Thermo 135

Corporate History 135

Position in the Market 135

Outlook 137

MENNEN MEDICAL/Clal Electronics (Israel) 139

Corporate History 139

OEM Relationships 139

Position in the Market 139

History of Innovation 140

Product Line Available 141

Ensemble 141

Telemetry 141

Outlook in the Market 142

Nellcor/Puritan-Bennett (Division of Mallinkrodt) 144

Corporate History 144

Recent Financial Performance 144

Acquisitions 145

Position in the Market 145

History of Innovation 145

Recent Product Introductions 146

Established Products 147

Outlook 148

NIHON-KOHDEN 149

Corporate History 149

1997 AACN - NTI Product "Work in Progress" Update 149

History of Innovation 150

Position in the Market 150

Products Available 151

Telemetry Products 153

Protocol Systems, Inc. 155

Position in the Market 155

Recently Introduced Products 156

Established Products 156

Data Transportability 157

New Central Station Enhancements 158

Outlook 158

Quinton Instruments (Div. Am. Home Products) 159

Company Information 159

Position in the Market 159

SIEMENS Medical electronics, Inc. (SME) 161

OEM Arrangements 161

Recent Financial Performance 161

Corporate Relationships 161

Corporate Restructuring 162

Position in the Market 162

1996 Product Announcements 162

Innovations of the Next Generation 162

Pods, Not Modules Anymore & A Simple, Intuitive User Interface 163

Docking Stations For Monitor and Recorder 163

A Crisp, Clear, Color Display 164

A Rotary Control Knob - Enhanced With Dedicated Keys 164

This System Well Documented 164

In With the New, Out With the Old 164

Central Station On Its Way From Brussels 165

"Virtual" Mouse Pointers 165

Bedside Waveform Review At Central 165

Marketing Challenges Siemens Faces In US 165

Siemens’ Woes in the US Market 165

Established Products 166

Outlook 167

SPACELABS, Inc. 169

OEM Relationships 169

Corporate Milestones 169

Position in the Market 169

Recently Introduced Products 170

Established Products 170

Outlook 174

ZYMED 175

Corporate History 175

Position in the Market 175

History of Innovation 176

Outlook 176

 

List of Tables and Figures

Table 1 - Therapies Received by Patients Monitored on Telemetry 3

Figure 2 - Expanding Telemetry Applications 5

Figure 3 - Telemetry Benefits To Managed Care 6

Figure 4 - VHF Band Characteristics 9

Figure 5 - Spread Spectrum versus Narrow Band Diagram 16

Table 6 - Potential Spread Spectrum OEM Suppliers 21

Figure 7 - Monitoring Company Core Technology Comparison 24

Figure 8 - Issues with 2.4 GHz. for Patient-Worn Telemetry Applications 31

Figure 9 - Operating Times of Various Suppliers 33

Figure 10 - Desirable Patient-Worn Transmitter Functionality 36

Figure 11 - History of Introduction of Current Telemetry Systems 39

Figure 12 - Digital Telemetry System Costs (No Discount) 42

Figure 13 - Medical Features Offered by Patient-Worn Telemetry System Suppliers 45

Figure 14 - Digital Telemetry Product Requirements 51

Figure 15 - Multi-Parameter Portable Telemetry Systems 56

Figure 16 - Major Suppliers and Their Products 57

Figure 17 - Uses of portable monitors with WLAN telemetry links 58

Figure 18 - Disadvantages of Transport Monitors 59

Figure 19 - Typical Portable with WLAN Capabilities (Courtesy NK) 60

Figure 20 - Comparison of Portable and Bedside Monitors 60

Figure 21 - Telemetry Capabilities of Portable Monitor Suppliers 61

Figure 22 - Portable Monitor Product Requirements 62

Table 23 - US Market Projections for Ambulatory Cardiac Related Monitoring 66

Table 24 - In-patient Non-Cardiac, Patient-Worn Telemetry Market Forecast 67

Figure 25 - Combined US Market for Patient Worn Telemetry Systems 67

Table 26 - Recent Vitalcom Financial Results 70

Table 27 - Criticare Systems’ Revenues 77

TABLE 28 - CRITICARE History of Innovations 78

TABLE 29- Selected Products Available from CRITICARE 80

TABLE 30 - Selected J&J Medical Monitoring Products and Capabilities 87

Table 31 - Datascope Recent Financial Results 89

TABLE 32 - Selected DATASCOPE Product Innovations 90

TABLE 33- Selected DATASCOPE Monitoring Products 91

TABLE 34- Selected Fukuda Denshi Monitoring Products 96

Table 35 - Recent Financial Performance 99

TABLE 36 - Selected HP Corporate Relationships 99

TABLE 37- Selected HP Medical Interfaces 100

TABLE 38- Hewlett Packard Product Introduction 107

TABLE 39 - HP Bedside Monitoring Displays Available 108

TABLE 40- CMS Modules Currently Available 109

TABLE 41 - Some Merlin System Capabilities 111

TABLE 42 - HTS Telemetry System Features 115

TABLE 43 - Bedside Monitors From Life Sensing 116

Table 44 - Marquette Medical Recent Financial Results 117

TABLE 45- MARQUETTE History of Innovation 118

Table 46 - Overview of Marquette Medical's Product Line 119

TABLE 47 - Modules Compatible with Unity 126

TABLE 48 - Tram Modules and Their Capabilities 127

TABLE 49 - System Software Levels & Features 128

TABLE 50 - Features Common to ALL Software Versions 129

TABLE 51 - MDE Product Configurations 136

TABLE 52- OEM Relationships 139

TABLE 53 - MENNEN MEDICAL’s Product Innovations 140

TABLE 54- Mercury Product Configurations and Options 141

TABLE 55 - Mercury Optional Features 141

TABLE 56 - Horizon Model 1100 & 1110 Configurations 142

Table #57 - Nellcor financial Performance 144

TABLE 58 - Nellcor History of Innovation 146

TABLE 59- Available Products from Nellcor 148

TABLE 60- Nihon Kohden’s Product Innovations 150

TABLE 61- Selected NIHON-KOHDEN’s Bedside/Transport Products 151

TABLE 62 - NIHON-KOHDEN Modular Bedsides 151

TABLE 63 - Selected NIHON-KOHDEN’s Modules 151

TABLE 64 - Configurations of the Life Scope 6 & 7 Monitors 153

TABLE 65 - Selected PROTOCOL SYSTEMS Product Configurations 157

Figure 66 - Siemens Old and New Monitoring Product Line 164

TABLE 67 - SIEMENS Digital VHF "All-Band" Tunable Telemetry 166

TABLE 68 - Selected SPACELABS Parameter Modules 171

TABLE 69 - SPACELABS Full Disclosure Capabilities 173

TABLE 70 - SPACELABS’ Large Screen Displays 173

TABLE 71 - ZYMED T8010 Telemetry System Capabilities 176