As more people obtain health insurance, demand for podiatrists will strengthen
Los Angeles, CA (PRWEB) December 19, 2012
The Podiatrists industry has benefited from an aging population and increasing rates of diabetes and other chronic illnesses that require foot care. In addition, the industry is making efforts to boost awareness among consumers and the healthcare community regarding the importance of podiatry in achieving overall well being. Along with favorable demographic trends, these efforts are expected to contribute to average annual revenue growth of 1.7% during the five years to 2012. In 2012, revenue is expected to reach $4.7 billion, representing growth of 1.5% from 2011. “Despite efforts to raise foot-care awareness, podiatrists still compete with general practitioners for patients,” says IBISWorld industry analyst Nikolas Hulewsky. “Studies indicate that people often visit their primary care provider for foot ailments rather than going to a podiatrist.” This has restrained industry growth to some degree and has led to heightened efforts to level the playing field in the years ahead.
Along with these efforts, podiatrists are increasingly joining group practices. These larger practices have more resources to devote to marketing and are better able to negotiate inclusion in provider networks with managed care organizations. Operators are also consolidating to respond to rising costs and mounting evidence that group practices are more profitable than solo practices. As a result of consolidation, the number of operators is expected to decrease at an average annual rate of 2.5% in the five years to 2012 to 11,122. This trend will continue in the next five years, further reducing the number of operators. The Podiatrists industry has a very low level of concentration; the four largest firms in the industry together generate a small percentage of total revenue. “The industry is mainly made up of very small establishments, and most podiatrists operate as solo practitioners,” adds Hulewsky. “However, more podiatrists are entering partnerships with other podiatrists and other health practitioners.”
Meanwhile, IBISWorld projects that the number of employees will increase through 2017, indicating that fewer podiatrists will be in solo practices. This trend will help improve the operating profit margins. Profitability gains will likely be limited due to reimbursement pressures from Medicare and private health insurance in the years ahead. However, healthcare reform signed into law in 2010 is forecast to significantly boost the number of people with healthcare insurance coverage beginning in 2014. This factor will result in higher revenue during the five years to 2017. For more information, visit IBISWorld’s Podiatrists in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes establishments of health practitioners who have the degree of DPM (Doctor of Podiatric Medicine) and are primarily engaged in the independent practice of podiatry. These practitioners diagnose and treat diseases and deformities of the foot and operate private or group practices in their own offices or in the facilities of others, such as hospitals or other medical centers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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