Forecasting Insights for 2025: A Promise for True Transformation

Published in Member Communities on March 13, 2025

By Lindy Tentinger, President, VGM & Associates

As we look at the year of 2025 from a VGM membership perspective, it’s never been clearer that our industry is on the cusp of transformative changes. From technological advancements to evolving patient needs and wants, the landscape in the next 24 to 36 months continues to shift in ways that promise both challenges and opportunities. Below are some key trends and insights that will shape our journey together in the coming year. 

Data Security: A TIP TOP Priority 

Everyone experienced how detrimental a security incident is to your business in 2024. With the increasing reliance on digital health solutions and individual healthcare records as some of the most valuable on the circuit, data security is more important than ever. HME providers must invest in robust cybersecurity measures to protect patient data. One of the most important investments you could make in 2025 is for regular penetration testing with an experienced partner. A true penetration test goes beyond regular vulnerability scans. Scans are simply not enough in the world we live in. While scans are useful for regular, automated checks to identify known issues, penetration testing offers a more thorough, hands-on approach to uncovering and understanding the potential impact of security weaknesses.

In 2025, we expect to see stricter regulations and higher standards for data protection. Ensuring proactive practices and compliance will not only protect your patients but also your business. 

HME is Still a Growing Market 

The aging population continues to be a significant driver for the HME industry. By 2025, the number of Americans aged 65 and older is expected to reach 73 million. Products that cater to the needs of older adults, such as mobility aids and home safety equipment, will be in high demand. Related specifically to the HME industry, the market is estimated to be at $38B the end of 2024, with an 8.5% compound annual growth rate (CAGR) reaching to $73B by 2032. This demographic shift presents a massive opportunity for HME providers. Additionally, HME share of Medicare dollars is growing faster than other sectors.

Payer Environment Continues to Shift 

As you know, the payer environment for HME providers is evolving rapidly, with new contracts and partnerships shaping the future of the industry. One notable development is the recent capitated arrangement between UnitedHealthcare and Synapse Health for standard durable medical equipment in North Carolina and Georgia. 

Looking ahead to 2025, this relationship between UnitedHealthcare and Synapse Health is indicative of broader payer trends in the HME market. As payers seek to optimize costs and improve patient outcomes, we can expect more integrated and capitated payment models to emerge. Embracing technology, such as e-prescribing portals and data analytics, at a minimum, is essential to play in this new space. 

Medicare Advantage (MA) plans have experienced significant growth over the past decade, now covering more than half of all seniors eligible for Medicare. This trend is expected to continue into 2025, despite facing challenges such as regulatory changes and increased utilization rates. In 2024, states like Pennsylvania, Georgia, and Mississippi saw notable increases in plan counts, indicating a robust expansion in certain regions. However, some states, including California and New York, experienced a decline in plan availability due to market consolidation. Looking ahead, MA plans are likely to remain a focal point for policy attention, with ongoing efforts to enhance benefits and streamline prior authorization processes. This continued growth and adaptation suggests that MA will play an increasingly vital role in providing comprehensive healthcare coverage for seniors. 

Different People Purchase in Different Ways 

People have diverse purchasing behaviors influenced by various factors such as personal preferences, psychological triggers, and situational contexts. Some customers prefer the convenience of online shopping, while others value the tactile experience of in-store purchases. For an HME provider, understanding these differences is crucial. Tailoring experiences to individual needs can significantly enhance customer satisfaction and loyalty. Gathering more data from customers at different touch points will allow for a tailored experience, and more applicable drip messaging. 

To effectively personalize and customize the customer experience, training staff to recognize and adapt to individual needs is vital. This involves educating employees on the various medical conditions and equipment, as well as developing strong communication skills to understand and address customer concerns. Role-playing scenarios can help staff practice delivering tailored services, whether it’s providing in-home setup for oxygen equipment or demonstrating the use of a CPAP device in-store. Additionally, leveraging technology, such as customer relationship management (CRM) systems, can help track customer preferences and history, enabling more personalized interactions. By focusing on these strategies, you can enhance customer satisfaction, build loyalty, and ultimately increase revenue. 

Wearables Renew Spark

Wearable technology has seen a significant resurgence in consumer interest, driven by advancements in health monitoring and seamless integration with daily life. In 2025, wearables are not just fitness trackers but comprehensive health companions, offering features like non invasive glucose monitoring, real-time blood pressure tracking, and sleep apnea detection. The new Apple Watch, for instance, has introduced a groundbreaking sleep apnea detection feature that uses an innovative breathing disturbances metric to identify potential sleep apnea cases. This feature is expected to help millions of undiagnosed individuals recognize their condition early, potentially reducing the risk of severe health issues like hypertension and cardiac problems. As a result, more consumers are adopting wearables, integrating them into their routines for better health insights and proactive management.

The market for wearables is projected to grow exponentially as these devices become more sophisticated and essential. The Apple Watch’s sleep apnea detection feature alone is anticipated to significantly impact the market by addressing a condition that affects over a billion people worldwide. This trend indicates a future where wearables are indispensable tools for personal health management, contributing to a more informed and health-conscious society. As we move forward, the integration of advanced health monitoring features in wearables will likely continue to attract consumers, making these devices a staple in everyday life.

Sustainable and Eco-Friendly Practices Take Stage 

In 2025, we anticipate a significant shift towards eco-friendly home medical equipment. While overall we are making strides in this area, there is much room for improvement compared to other sectors. This will be even more important in the future as younger generations are more likely to priorities sustainability in their purchasing decisions. This is very important to note now, however, as these practices take long-range planning to implement fully. HME providers can play a pivotal role by adopting eco-friendly practices such as using energy-efficient equipment, promoting the recycling and proper disposal of old devices, and choosing suppliers that prioritize sustainable materials. Additionally, providers can educate patients on the benefits of sustainable practices, such as cleaning practices and water use reduction. By integrating these practices, providers not only contribute to a healthier planet but also enhance their brand equity and meet the growing demand for environmentally responsible healthcare solutions.

The Subscription Model: A New Way to Deliver Care, Even for HME 

The subscription economy has arrived in healthcare. More and more HME providers are adopting subscription-based models, offering patients access to equipment and services for a monthly fee. This model ensures a steady revenue stream for providers and makes high-quality care more accessible to patients. It’s a win-win situation that we expect to see grow in popularity in 2025. 

Regulatory Changes and Reimbursement Policies 

Navigating the regulatory landscape is always a challenge, but staying informed is key. In 2025, we anticipate several changes in reimbursement policies, particularly from Medicare and private insurers. These changes, of course, will continue to impact how you operate and get paid. Staying ahead of these shifts, sharing patient stories, and utilizing grassroots advocacy efforts will be crucial for maintaining profitability and compliance. We are all in this together, and we need all hands on deck to make the difference the industry needs.

The Human Touch: Still Irreplaceable 

While AI and machine learning can replace a lot of things, human connection will be tough. Amid all these technological advancements, let’s not forget the importance of the human touch. Building strong relationships with patients and providing compassionate care will always be at the heart of what you do. Technology can enhance our capabilities, but it can never replace the empathy, understanding, and service that only a human can provide.

I left AI out as its own category on purpose. We all know AI continues to be a trending opportunity and a must for transformative business. Your competitors are figuring it out. They are becoming more efficient. They are doing more with less. They will have pricing flexibility. If you are not changing in 2025, you will be forced to in 2026. 

All of us here at VGM will be with you every step of the way. After all, the best way to predict the future is to create it. 

Here’s to a successful and transformative year ahead! 

Resources

1 IDR Medical, “2025: Top Trends Shaping the Medical Device Industry”

2 Fitch Ratings, “U.S. Medical Devices, Healthcare Providers and Pharmaceuticals Outlook 2025”

3 Truway Health, “Trends in Durable Medical Equipment (DME) and What to Expect in 2025”

4 Deloitte Insights, “2025 US health care outlook”

READ THE FULL ARTICLE HERE

This article was originally featured in the VGM Playbook: Forecasting 2025. To read the full article and more like this, download your copy of the playbook today! 

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