Emergency and Other Outpatient Care Centers in the US Industry Market Research Report Now Available from IBISWorld

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The rapidly aging population will continue to demand medical care, guaranteeing a healthy prognosis for the industry. Furthermore, a spike in growth is expected in the next five years, when the insurance exchange, a major component of the 2010 healthcare reform acts, will be implemented. The exchange is expected to increase the number of people with private insurance, making the services of the 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 added a report on the Emergency and Other Outpatient Care Centers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

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

The Emergency and Other Outpatient Care Centers industry has been on the rise. Factors such as the aging population and the necessary nature of 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 industry analyst Sophia Snyder. “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 Emergency and Other Outpatient Care Centers industry 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 million by 2019,” adds Snyder. “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 in 2017, mainly due to mounting consolidation efforts. Larger operators will be better positioned to take advantage of bundled Medicare reimbursement and to negotiate with insurance companies, which will contribute to consolidation. While there are several large companies, including major players Fresenius Medical Care AG and DaVita Inc., the industry remains fragmented. A number of standalone facilities have experienced drops in volume or reimbursement and are in search of capital and economies of scale. In addition, a number of companies backed by private equity sponsors may be anxious for some level of liquidity, if not complete exits, from their investments. New corporate buyers have emerged, including health systems, private equity-backed buyers and existing industry companies that sat on the sidelines during the economic recession. A few historical corporate buyers, however, slowed down their acquisition strategies, due at least in part to the credit crunch. All of these factors will likely create an environment robust with consolidation activity over the five years to 2017. As part and parcel of the consolidation trend, significant increases in physician-hospital joint ventures are likely in upcoming years. The attractiveness of joint ventures for outpatient centers and physician owned surgical hospitals is substantial. While new companies will continue to open during the next five years, consolidation will push the number of operators downward. 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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