Medical Patient Financing in the US Industry Market Research Report Now Available from IBISWorld

Share Article

The Medical Patient Financing industry tumbled over the past five years as consumers chose to delay or cancel elective procedures like dental and vision work – procedures typically covered by industry financing. As consumer incomes and total health expenditure rise, though, the industry is expected to return to steady growth. The looming implementation of the Patient Protection and Affordable Care Act's insurance exchanges, which will extend health insurance to far more people, is expected to limit industry growth as more people use insurance to cover added expenses. For these reasons, industry research firm IBISWorld has added a report on the Medical Patient Financing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

In 2009, more consumers skipped elective procedures typically financed by the industry

Firms in the Medical Patient Financing industry have struggled to adapt to recessionary conditions and a changing healthcare environment. Over the five years to 2012, IBISWorld estimates that industry revenue declined at a 4.2% average annual rate to about $2.9 billion. The recession eroded the financial condition of many households, which pressured them to cut back on medical-related costs. In particular, says IBISWorld industry analyst Doug Kelly, “Consumers chose not to undergo or to delay elective medical procedures that industry firms typically finance, such as dental work, plastic surgery, cardiovascular or gynecologic surgeries.” This contraction was further accelerated by industry operators that reacted to the recession by tightening lending standards for patients, which limited the number of patients that could qualify for industry financing. The spike in loan losses and delinquencies also caused industry profit to decline over the past five years.

Pent-up consumer demand for health services helped industry revenue rebound 6.8% in 2011. Rising healthcare costs, combined with rising health and medical insurance (IBISWorld report 52411b) deductibles and copayments, boosted demand for industry financing. In addition, says Kelly, widening gaps in insurance coverage also contributed to industry growth. IBISWorld anticipates that revenue will grow 4.6% in 2012. The Medical Patient Financing industry is fragmented, with only one major player, General Electric’s CareCredit business, capturing more than 5.0% of industry revenue.

The industry is expected to continue expanding over the next five years. Improved economic conditions and increased healthcare expenditures will drive industry growth. However, the expansion of public and private health insurance coverage will also slow down healthcare costs and slow consumer demand for third party industry financing because consumers will be able to cover more of their health expenditures with insurance, traditional credit cards and savings. Therefore, although the industry is forecast to find growth opportunities, the industry will remain below its 2005 peak over the outlook period. For more information, visit IBISWorld’s Medical Patient Financing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry includes companies that are primarily engaged in extending credit facilities to consumers to cover healthcare costs and related expenses. Financing can be provided for elective and non-elective medical procedures.

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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website