Medical device manufacturer Zimmer Biomet is keeping a close eye on the "rapid" shift of orthopedic and joint replacement cases to the ASC setting.
The company plans to be "relentless" about its ASC opportunities in the U.S. moving forward, according to a transcript from the company's Nov. 7 third quarter earnings call.
In the third quarter, the company had a strong showing in the ASC setting, with facilities increasingly adopting its Rosa joint replacement robot.
Zimmer Biomet is also benefiting from the recent acquisitions it has made in the ASC space, including the additions of Embody, a devicemaker that focuses on soft tissue healing, and ReLign, which developed a three-in-one arthroscopy system.
"The ASC is one attractive area. It's one area where we have dedicated resources. We're growing in the teens. We currently have 10% to 15% of our sales in that space and there are opportunities there to acquire things," CEO Ivan Tornos noted in the earnings call.
Executives also emphasized that Zimmer Biomet has a strong robotic platform and many dedicated resources for the ASC environment.
Mr. Tornos also emphasized the prediction that 40% to 60% of total joint replacement cases are expected to occur in the ASC setting in the next three to five years.
Recent studies have shown that inpatient joint replacement numbers are already falling rapidly, with the number of knee replacement procedures occurring in the outpatient setting increasing by 293% in the last four years.
Additionally, hospitals are now averaging financial losses for every hip and knee replacement they perform.