Greater access to insurance and the aging population are expected to boost demand
Los Angeles, CA (PRWEB) December 03, 2013
Diagnostic imaging centers in the United States provide traditional X-ray and ultrasound services, but also offer more complex and costly imaging services, such as computed tomography scans, magnetic resonance imaging and nuclear medicine (which includes positron emission tomography). There are about 6,600 freestanding diagnostic imaging centers in the United States, and the Diagnostic Imaging Centers industry is highly competitive, both due to internal pricing pressure from consolidating industry companies and volume pressure from external competitors, such as hospitals and physicians' offices that acquire their own imaging capabilities.
During the five years to 2013, revenue has grown an annualized 3.7%, to $22.6 billion, as physicians and healthcare insurers have begun to recognize industry services as cost-effective and noninvasive diagnostic alternatives to investigative surgery or curative care. According to IBISWorld Industry Analyst Jocelyn Phillips, the aging population has increased overall demand for diagnostic services, as elderly populations are more susceptible to medical ailments and subsequently require more healthcare services.
Continuing scientific research has further boosted the growth of diagnostic testing services by enabling the development of higher-precision machinery, which gives industry operators the opportunity to gain a competitive advantage by offering high-tech services.
IBISWorld expects the market for analytic and diagnostic services to continue to grow rapidly in the five years to 2018. Scientific advances will continue to yield new and improved service capabilities and the aging US population will increasingly require more and better diagnostic imaging services.
“Additionally, as a result of the Patient Protection and Affordable Care Act, access to healthcare insurance for US citizens will grow considerably during the next five years, which will be a net benefit to the industry; greater access to insurance is expected to boost demand by making industry services more affordable for patients,” says Phillips. Medicare and Medicaid reimbursement cuts may limit growth for industry profit margins, but an industry-wide trend toward consolidation will likely help operators reduce costs and maintain bargaining power with health insurance providers.
The Diagnostic Imaging Centers industry has a low level of concentration. The industry's consolidation has been aided by company mergers and acquisitions. In response to cost-cutting pressures across the medical sector, customers and payers, including physicians, health insurance plans, employers and pharmaceutical companies, have consolidated. IBISWorld expects industry consolidation to continue over the next five years as well, as healthcare reform legislation continues to encourage industry operators to reduce costs.
For more information, visit IBISWorld’s Diagnostic Imaging Centers in the US industry report page.
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IBISWorld industry Report Key Topics
The Diagnostic Imaging Centers 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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