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U.S. Sleep Labs Industry Now Worth $4.3 Billion

Labs Adjust and Grow, Independents To Fare Best

Insightful Market Reports
Insightful Market Reports

"Sleep labs continue to provide an important service for the sleep-deprived."

Tampa FL,  April 11, 2018…  Marketdata Enterprises, Inc., a leading independent market research publisher of
“off-the-shelf” studies about service industries since 1979, has released a new 80-page report entitled:
  Sleep Labs in America: An Industry Analysis.  This new Marketdata study examines the 4,700 “sleep labs” or “sleep centers” that perform sleep studies (polysomnograms) for persons with insomnia and sleep disorders.
According to Research Director, John LaRosa: “As Americans age and obesity rates remain high, more people are developing sleep apnea, restless leg syndrome and other sleep disorders. Plus, stressors related to the volatile stock market, terrorism, mass shootings, healthcare, student debt, and protests against politicians are all resulting in more sleepless nights. A significant $4.3 billion industry has emerged to analyze our sleep patterns and health—sleep labs and home test devices.”
Major Findings:

Market Size and Growth… Marketdata estimates that U.S. sleep labs generated $4.3 billion in 2017.  To 2023, we forecast 5.4% average annual growth, to $5.43 billion.

We estimate that there are 4,700 sleep labs in operation, higher than the 2,500 figure often quoted by the media. These labs are based in hospitals, MD offices, or are freestanding independent facilities. Nearly all are accredited, by the AASM or JCAHO.

The typical lab has revenues of $920,000 and a bed count of about 7-8. There has been consolidation and closures due to reimbursement pressure from competing portable home testing devices approved by Medicare. Less costly home-based tests have reduced the number of in-lab studies by about 30% over the past decade.

Marketdata analysts believe that patient demographics will override the negative impact of competition from cheaper sleep apnea home tests. We think that most of the price declines have already been factored in. Medicare represents only 25% or less of the total sleep studies performed in the United States (total 3.5 million studies).

The TOTAL sleep aids market (consisting of sleep labs, CPAP devices, premium mattresses and pillows, retail devices such as earplugs, light therapy machines, sound conditioning machines, books about sleep advice, sleep pods, eye masks, smartphone apps, and other devices) is estimated to be worth a combined $28.6 billion in 2017.

Most of the growth to 2023 will take place among the independent sleep labs and private physician offices-- not hospital-based facilities.

Patient volumes have been increasing in early 2018.

The peak year for sleep lab numbers and revenues was 2006, prior to the Great Recession and before the Center for Medicare Services ruling approving the use of cheaper home testing devices. From 2008 to 2018, annual sleep study price (and revenue) declines have averaged 3-4%.

Sleep centers receive between $500 to $600 for an in-lab test; home sleep tests only bring in around $150 to $230.

According to Research Director, John LaRosa: “An estimated 70 million Americans have insomnia, and  43 million suffer from obstructive sleep apnea (OSA), mostly undiagnosed. As obesity rates remain high, this problem is not likely to dissipate any time soon. Therefore, there is ample room for future growth of sleep studies and testing.”
Editor’s Note: Sleep Labs in America; An Industry Analysis , published in April 2018, is an independently researched  market  study.  It contains 35 tables and is 80 pages long.  It costs $350.  A free brochure is available by mail, Fax, or email:  Contact:  John LaRosa, Marketdata LLC, 7210 Wareham Drive, Tampa, FL 33647, 813-971-8080, or: see the website: (report FS63). John LaRosa is available for interviews, teleconferences, and consulting.


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