There has been a quantum improvement in the oxygen concentrator technology. Less weight, more power are the characteristics of the new portable units that begin to rival the larger home units. The huge jump in technology is illustrated by the effectiveness of the Inogen G3 and the about to be released VBox Trooper. Innovation started with Inogen One G3 and AirSep's LifeStyle are the less-than-10-pound battery-operated concentrator. AirSep has re-engineered the unit down to a 2 pound device.
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Newer portable oxygen concentrators can be used as multipurpose devices.
Portable oxygen concentrator technology has been instantiated many times over, but in a most compelling manner by Inogen as the Inogen oxygen concentrator which represents a technological breakthrough. The Inogen One G3 is a complete departure from current mainstream technologies. It represents a shift away from standard large, bulky, stationary concentrator systems and inefficient, heavy, and impractical portable devices.
This transformation presents a new opportunity for people who make PSA oxygen equipment. Economies of scale and a new distribution modality leveraging homecare services are set to change the medical oxygen industry. Home delivery markets tend to be evaporating.
Delivering oxygen cylinders costs money and consumes resources. In current competitive bidding markets, reimbursement for oxygen is down by up to a third. Providers in these markets are compensating for this reduction by moving their oxygen business to a nondelivery
model.
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Philips medical chronic disease equipment is able to address market trends. Invacare has been a continuing market leader in articulating the benefits of homecare.
The complexion of the home oxygen market is changing. Home oxygen markets have been predicated on a dealer infrastructure. These dealers get reimbursed for regular deliveries of liquid oxygen used for supplemental oxygen so the patient can go out, buy groceries, go to the movies, and visit family for a short time. The advent of reliable, inexpensive portable home oxygen concentrators has changed the market dynamic significantly.
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