Impact of Costco Brand Name Hearing Aid Expansion on Otolaryngology Office Hearing Aid Revenue

Objectives: The objective of this study is to evaluate the impact of Costco's expansion in the hearing aid market on the impact of hearing aid sales by otolaryngologists. Design: Revenue data was acquired for 34 practice locations for the years 2013 through 2017 and compared before and after 2015, when Costco expanded its options for hearing aid brands. Revenue growth was regressed on the distance between otolaryngology office and the nearest three Costco locations. Results: A univariate regression analysis shows that a 10-minute decrease in average travel time to Costco would result in an 8% increase in CAGR growth. Conclusion: This study shows the closer an otolaryngologist's office is to a Costco, the greater the growth the office experienced after 2015, indicating that Costco proximity did not reduce hearing aid sales.