Greater access to insurance and the aging population are expected to boost demand
Los Angeles, CA (PRWEB) September 25, 2012
The diagnostic testing segment remains fragmented and highly competitive. There are about 6,695 freestanding diagnostic imaging centers, those that operate independently of hospitals, in the United States. About 70.0% of annual spending in the United States on diagnostic imaging services takes place in hospital settings, with the remainder done in outpatient centers (including physicians' offices and independent diagnostic testing facilities). Firms in the Diagnostic Imaging Centers industry generally focus on more complex and more costly imaging services, such as computed tomography (CT) scans, magnetic resonance imaging (MRI) and nuclear medicine (which include positron emission tomography, or PET).
During the five years to 2012, diagnostic imaging has experienced growth as a result of the recognition of these services as cost-effective and noninvasive diagnostic tools. Physicians and patients have recognized the value of diagnostic testing as a way to improve health and reduce the cost of healthcare through early detection and prevention. The aging population has increased overall demand for healthcare services, including diagnostic services. Also, continuing research and development in genomics (the study of DNA, genes and chromosomes) and proteomics (the study of individual proteins and collections of proteins) have boosted the growth of diagnostic testing services. As such, IBISWorld expects the Diagnostic Imaging Centers industry's revenue to grow at an annualized rate of 2.6% during the period, according to IBISWorld industry analyst Josh McBee.
The market for analytic and diagnostic services will continue to grow rapidly in the five years to 2017, including a 3.4% gain expected to bring total revenue to an estimated $21.2 billion in 2012, McBee says. Scientific advances will continue to yield new and improved service capabilities and the aging US population will require more and better 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; greater access to insurance is expected to boost demand, shrinking out-of-pocket costs for laboratory services. Consolidation will lead to larger operators, which will help reduce costs and maintain bargaining power with health insurance providers. Concentration in this industry has increased over the past five years due to mergers and acquisitions, but the industry remains highly fragmented. For more information, visit IBISWorld’s Diagnostic Imaging Centers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes outpatient freestanding facilities that use machines and techniques to create images of the inside of a patient's body. The technology that is used depends on symptoms and the part of the body being examined. Operators use various types of diagnostic imaging, including X-rays, CT scans, nuclear medicine scans, MRI scans and ultrasound. Imaging facilities within a larger hospital are excluded, but mobile laboratories are included.
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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