More health insurance companies will cover alternative healthcare, benefiting the industry.
Los Angeles, CA (PRWEB) September 23, 2013
The services of the $11.5 billion Alternative Healthcare Providers industry are becoming more mainstream and less alternative. As a result, revenue is expected to grow at an annualized rate of 2.3% in the five years to 2013. Consistent demand for alternative care, despite recessionary conditions, is partly attributable to the essential nature of industry services, as patients are less likely to cut spending on healthcare than they are to reduce spending on more discretionary goods.
The recession benefited alternative healthcare providers as Americans faced mounting difficulty in accessing conventional healthcare. In 2008 and 2009, many individuals lost health insurance coverage due to falling employment and income levels. According to IBISWorld Industry Analyst Anna Son, “This reduction in conventional care helped level the playing field for alternative healthcare providers, as insurance or government programs such as Medicare and Medicaid do not cover many industry services.” Therefore, when insurance coverage fell during the recession, many individuals became open to trying alternative methods. In contrast, falling disposable income hurt industry revenue in 2008 and 2009, when people were less able to afford visits.
The healthcare reform initiated in 2010 will both benefit and harm the industry over the coming years. Growth in private and public insurance coverage, mandated to begin in 2014, will attract individuals back to conventional healthcare. However, “the reform prohibits health insurance companies from discriminating against licensed alternative healthcare providers, so providers are anticipated to benefit as more consumers gain coverage for industry services,” says Son. Because billing and coding for insurance payments is time consuming and costly, larger operations are more capable of properly performing these functions. As a result, industry operators are projected to consolidate. However, while consolidation will help reduce administrative costs and boost operating profit, the Alternative Healthcare Providers industry remains highly fragmented.
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IBISWorld industry Report Key Topics
The Alternative Healthcare Providers industry provides health services that are not classified in any other industry, such as meditation, yoga or massage. These practitioners operate private or group practices in their own offices or in the facilities of others, such as hospitals, medical centers or patient homes. The industry does not include chiropractors; mental health specialists; physical, occupational and speech therapists; audiologists; or podiatrists.
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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