The next five years are expected to bring double-digit revenue growth to the sleep service providers market in the U.S., according to Frost & Sullivan (Palo Alto, California). This will happen despite increasing saturation of this sector, it said, since sleep disorders are seen as having an obvious impact on long-term health.

"Awareness of sleep disorders is increasing, with the medical community adding them to its list of conditions that should be routinely tested for in patients," said Katherine Shariq, a Frost & Sullivan analyst. "The proper diagnosis and treatment of sleep disorders among the aging baby boomer population is expected to strongly contribute to the double-digit growth projected over the next five years."

The new analysis from Frost & Sullivan, "U.S. Sleep Service Provider Markets," reveals the total market generated revenue of $1.6 million in 2004 and is estimated to reach $4.4 million in 2011 at a compound annual growth rate of 15.4%.

Accreditation also is likely to play a deciding role in the growth of this market. Currently, the Joint Commission of Accreditation of Healthcare Organization, which ensures that facilities provide safe treatment to their patients, governs almost all hospitals.

Sleep providers – both hospital-based and independent facilities – are eligible to apply for sleep testing accreditation through the American Academy of Sleep Medicine (Westchester, Illinois).

Accounts receivable contract cancelled

United Medicorp (UMC; Dallas) said that it has received notice from one of its largest customers, Brownsville Surgical Hospital (BSH; Brownsville, Texas), that the company's ongoing accounts receivable management service contract with this customer will terminate on April 15.

Under the contract, which was executed on Oct. 31, 2000, UMC has provided day one claims billing and follow-up, early stage and bad debt patient balance collection and offsite coding services to BSH.

According to BSH management, the contract with UMC is being terminated in order to bring these functions in-house, which they believe will result in cost savings to the hospital.

EP MedSystems shipping catheters from Mexico

EP MedSystems (West Berlin, New Jersey), which focuses on electrophysiology (EP) products used in cardiac rhythm management, reported that it has begun shipping certain EP catheters to its customers from its offshore manufacturing efforts in Mexico.

EP MedSystems' President and CEO Reinhard Schmidt said, "We expect a savings of over 25% in labor costs related to these price sensitive products. We will continue to manufacture our higher-margin consumables and electronic components in West Berlin."

The company's EP product line includes the EP-WorkMate Electrophysiology Workstation with RPM Real-time Position Management navigation technology, the EP-4 Computerized Cardiac Stimulator, fixed and deflectable diagnostic electrophysiology catheters and related disposable supplies, the ALERT System and ALERT family of internal cardioversion catheters, and the ViewMate intracardiac ultrasound catheter imaging system.

Delphi Medical expands work with SRI

Delphi Medical Systems (Troy, Michigan) has expanded its collaboration with SRI International (Menlo Park, California), a non-profit public benefit organization, to develop a patented, respiratory care family of devices for use primarily at home and in alternate sites.

These new respiratory care devices will be a miniaturized version of what is used today. The Delphi Medical device could make it possible for patients to maintain their respiratory care or therapy while traveling or in the comfort of their own home.

"Growing our relationship with Delphi Medical presents yet another opportunity for SRI to lend interdisciplinary R&D expertise to products with the latest technology that will positively impact overall health," said John Bashkin, director of business development at SRI.

Delphi Medical Systems has worldwide exclusive rights for this technology in the medical field, and will develop, manufacture and distribute the new respiratory care device in the near future, either directly through distributors or through co-branding arrangements with OEMs.

SRI International touts itself as one of the world's leading independent research and technology development organizations.