Diagnostic and Medical Laboratories in the US Industry Market Research Report Now Updated by IBISWorld

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Diagnostic and medical laboratories provide healthcare practitioners with information about the presence, severity and cause of patients' physical ailments. While the Diagnostic and Medical Laboratories industry has long been an essential ingredient in healthcare, the aging population and the ongoing move toward preventative care have further boosted revenue in recent years. Indeed, during the five years to 2012, industry research firm IBISWorld expects industry revenue to grow an average of 2% annually to $48 billion.

IBISWorld Market Research

IBISWorld Market Research

New Technologies and greater insurance coverage will strengthen demand.

Diagnostic and medical laboratories provide healthcare practitioners with information about the presence, severity and cause of patients' physical ailments. While the Diagnostic and Medical Laboratories industry has long been an essential ingredient in healthcare, according to IBISWorld industry analyst Sophia Snyder, the aging population and the ongoing move toward preventative care have further boosted revenue in recent years. Indeed, during the five years to 2012, revenue is expected to grow an average of 2% annually to $48 billion. Growth has started to accelerate after it slowed in 2008 due to the economic recession, and revenue is expected to rise 2.7% in 2012.

According to Snyder, “While the aging population has bolstered demand, it has also threatened the industry. Laboratories are witnessing a shortage of skilled labor as baby boomers, who make up a significant portion of the industry workforce, retire and fewer individuals pursue healthcare professions. This trend is evident in the marginal 0.1% annual increase in employment to 251,382 people over the five years to 2012. The shortage of skilled labor has boosted salaries as operators try to entice people into the field and retain current employees. The escalating use of automation and standardization in laboratories has helped keep overall wage costs down.”

The market for analytic and diagnostic services will continue to grow at a rapid pace in the five years to 2017, says Snyder. Scientific advances are yielding new and improved service capabilities, and the aging US population is requiring more and better laboratory testing and diagnostic imaging services. Additionally, the healthcare reform legislation of 2010 will begin taking effect during the next five years, which will be a net benefit to the industry, mainly due to increased healthcare insurance coverage. Greater access to insurance will boost demand since out-of-pocket costs for laboratory services will shrink. The trade-off for the industry will be Medicare reimbursement cuts.

This industry has a low level of concentration, with the top four players accounting for about 30% of industry revenue; however, the top two players – Quest Diagnostics and Laboratory Corp of America – control many of the markets in which they operate. There has been some consolidation in this industry in recent years, particularly in the laboratory segment, but the industry remains highly fragmented.

For more information visit IBISWorld’s Diagnostic and Medical Laboratories in the US industry page

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IBISWorld industry Report Key Topics

This industry provides analytic services to identify or determine the nature and cause of a disease or injury through evaluation of a patient’s history, examination and data. These services are provided to healthcare providers or to patients on referral from health practitioners.

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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Gavin Smith
IBISWorld
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