Health equipment market opening up for retailers
In 2010 the threshold for government funded health equipment increased from $30 - $50. This opened up the retail market for healthcare equipment in the $0 - $50 range, changing the market dynamics as items below $50 have to be self-funded. Consumers are requesting health equipment products to be readily available in retail stores as they are no longer supplied through funded channels.
The Health Equipment market is always changing in New Zealand. One big factor is the changing funding threshold, which has an impact on equipment of a lower dollar value. All equipment below the minimum funding threshold has to be privately funded - consumers normally prefer to shop at their nearest retail store. In 2010 when the threshold rose from $30 to $50, many smart retailers took the opportunity to stock health equipment, which had become unavailable through Government funding organisations (Accessable & Enable). Today there is a lot more specialised healthcare retailers and pharmacies who stock a good range of healthcare products, taking advantage of the changing market conditions. Now in 2015 we are seeing a big increase in the elderly population who are purchasing health equipment in the below $50 threshold through retail sources, providing good business for retailers that had the vision early.
What does health equipment look like in a retail market?
Health equipment supplied in the retail market is typically the smaller dollar value items such as crutches, walking sticks, grab rails, reachers, urinals, pressure relieving cushions etc. These are a few common items consumers have been sourcing through retail shops. For retailers, stocking basic health care products produced awareness within their client base that they could source a range of health care products to suit their individual requirements. From this they started receiving requests for products outside their basic range which opened doors for additions to their health equipment range. Many retailers started selling and hiring larger equipment, that although was typically funded, would often be purchased because of convenience and individualised choice offered in retail. For example, walking frames are a funded product but retailers have had success in selling walking frames by offering a choice of colours and styles which aren’t available through the funded channels.
Looking into the future
The future looks very positive for retailers in the health equipment market with an increasing elderly population combined with a likely funding threshold increase. A funding threshold increase would shift larger dollar value equipment in the retail space as funding channels dry up. This means more consumers demanding a larger range of products through retail in the future.
Cubro's healthcare products
As funding parameters change, so will Cubro’s range, with more retail focused products fulfilling market demand. Cubro's range of healthcare equipment below the $50 threshold available across New Zealand, translates into convenience for the elderly and disabled as they can view and purchase items at resellers close to where they live.
Contact Arne Moxham on Freephone 0800 452 273 ext 8940 to discuss your aged care equipment requirements.
