LOS ALTOS, CA -- First-quarter medical electronics revenues fell 2.6%, but an economic recovery along with federal stimulus should bring US equipment production growth to 9.7% in 2011.

So says Henderson Ventures, which asserts the $7 trillion health care industry is ripe for opportunity thanks to an aging population (12.6% of US citizens are over 65 years of age, a number that will grow to 15% by 2018) and government investment toward universal health care insurance to the tune of $19.6 billion.

"Billions of dollars will be available to develop software and hardware over the next six years," the research firm says.

Meanwhile, the medical electronics industry is feeling the effects of the recession via dropped insurance coverage and stricter approval policies that have resulted in slumping equipment purchases. But according to Henderson, growth should rebound by 2011, thanks to the new investments.

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