Cochlear Market Potential
The innovation history of cochlear started with the pioneer Graeme Clark. After 50 years of extensive research and collaboration, Cochlear reached many milestones and world first on its journey and tens of thousands of cochlear implants were created and perfected which benefits many who suffer from severe hearing impairments and deafness. In Australia, nine out of ten people choose Cochlear, this shows that they are truly the industry leader. However, in today’s mist of globalisation, what factors affect their reach in the global markets?
One main factor is cost. The cost varies widely depend on a number of factors, including the duration and extent of a patient's hearing loss prior to surgery. The cost of the surgical procedure and the post-operative aural rehabilitation program which allows recipient to adjust to hearing sounds. The total cost exceeds $40000 and up to $120000 dollars [Bond 2009]. In developed countries such as United States, Australia and United Kingdom, provide federal health plans which benefits all cochlear implant services or part or all of the cost may be covered by health insurance. In the United Kingdom and Australia, the National Health Service (NHS) and Medicare covers cochlear implants in full, respectively. In United States, federal and state laws such as Americans with Disabilities Act prohibiting ‘exclusionary insurance policies that deprive cochlear implant candidates from the only opportunity to alleviate their hearing loss’. [Tucker 1997, p. 24-36] The law requires the Medicaid agencies to provide coverage for cochlear implants for children under 21, most provide benefits to adults as well. The law helps the cochlear implant companies such as Cochlear to root firmly in the developed countries and provide a strong foundation for further expansion.
In contrast to developed countries, the federal laws and the health care agencies rarely provide cost coverage and supports for cochlear implant recipients in developing countries. The
One main factor is cost. The cost varies widely depend on a number of factors, including the duration and extent of a patient's hearing loss prior to surgery. The cost of the surgical procedure and the post-operative aural rehabilitation program which allows recipient to adjust to hearing sounds. The total cost exceeds $40000 and up to $120000 dollars [Bond 2009]. In developed countries such as United States, Australia and United Kingdom, provide federal health plans which benefits all cochlear implant services or part or all of the cost may be covered by health insurance. In the United Kingdom and Australia, the National Health Service (NHS) and Medicare covers cochlear implants in full, respectively. In United States, federal and state laws such as Americans with Disabilities Act prohibiting ‘exclusionary insurance policies that deprive cochlear implant candidates from the only opportunity to alleviate their hearing loss’. [Tucker 1997, p. 24-36] The law requires the Medicaid agencies to provide coverage for cochlear implants for children under 21, most provide benefits to adults as well. The law helps the cochlear implant companies such as Cochlear to root firmly in the developed countries and provide a strong foundation for further expansion.
In contrast to developed countries, the federal laws and the health care agencies rarely provide cost coverage and supports for cochlear implant recipients in developing countries. The