Emergency and Other Outpatient Care Centers in the US Industry Market Research Report from IBISWorld has Been Updated

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The rapidly aging population will continue to demand medical care, guaranteeing a healthy prognosis for the industry. Furthermore, with the healthcare reform bill scheduled to take effect, the number of insured will grow, making the services of this industry more affordable for a greater number of people. To keep profit margins strong, more emergency and outpatient care centers will consolidate. For these reasons, industry research firm IBISWorld has updated a report on the Emergency and Other Outpatient Care Centers industry in its growing industry report collection.

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A rise in commercial insurance payments and a greater need will stimulate industry growth

The use of emergency and other outpatient care centers has been on the rise. Factors such as the aging population and the necessary nature of Emergency and Other Outpatient Care Centers industry services have helped bolster revenue throughout the five years to 2012. During this period, revenue is expected to grow at an average annual rate of 4.6%, including growth of 4.8% in 2012 to bring revenue to $82.7 billion. The industry continued to grow at a strong pace in 2008 and 2009, despite the recession. “This growth occurred because of a lag in the effect that unemployment has on insurance coverage and the associated use of healthcare benefits,” says IBISWorld analyst Anna Son. Many individuals increased their use of healthcare services in 2008 in anticipation of job cuts and the following loss of insurance coverage. Temporary government benefits for the unemployed also promoted continued use of healthcare services. However, in 2010, people began losing coverage and other benefits. The economy will likely continue to recover at a slow pace in 2012 and 2013, causing revenue to grow slowly as more people return to work and regain coverage.

As the economy improves during the five years to 2017, IBISWorld projects that revenue growth will continue. A spike in growth is expected in 2014, when the insurance exchange, a major component of 2010's healthcare reform acts, will be implemented. The exchange is expected to increase the number of people with private insurance coverage by 32.0 million by 2019. Since commercial insurance payments make up a significant portion of revenue and most of the industry's profit margin, revenue and profitability will likely benefit. Profit is forecast to increase to 9.2% of revenue in 2017 from 8.7% in 2012, mainly due to mounting consolidation efforts. Larger operators will be better positioned to take advantage of bundled Medicare reimbursement, despite a nearly flat rate forecast. According to Son, the industry will also depend more on commercial insurance payers for revenue and profit. Larger players will be better able to negotiate with insurance companies, which will contribute to consolidation. While new companies will continue to open during the next five years, consolidation will push the number of operators downward. During this time, the number of companies is forecast to decrease at an average annual rate of 0.4% to 15,052 in 2017.

The Emergency and Other Outpatient Care Centers industry has a low level of market share concentration. The top four firms are expected to account for about 19.3% of industry revenue in 2012. The large industry operators are both for-profit and not-for-profit entities. Market share concentration varies by industry segment, with the HMO medical center segment having the highest level of concentration. Census Bureau data indicates that in 2007 the top four HMO medical center firms accounted for 78.0% of revenue in the segment, while the top four kidney dialysis firms accounted for 72.4% of revenue in the segment, the top four freestanding ambulatory surgical and emergency center firms accounted for 15.6% of revenue in the segment, and the top four other outpatient care center firms accounted for 14.5% of revenue in the segment. For more information, visit IBISWorld’s Emergency and Other Outpatient Care Centers in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes establishments with medical staff primarily engaged in providing emergency, general or specialized outpatient care not included in other industries. Centers or clinics of health practitioners with different degrees for use in more than one industry practicing within the same establishment (e.g. doctor of medicine and doctor of dental medicine) are included in this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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