New York, NY (PRWEB) January 18, 2014
The Specialist Doctors industry enjoyed a rise in demand in recent years, leading to increased industry revenue, employment and wages. An aging population and increasing occurrences of chronic diseases, in particular, has fostered this rise. As a result, revenue has grown in each of the past five years. While growth decelerated during the recession, as unemployed individuals lost insurance coverage and disposable income fell, revenue continued to increase mainly because healthcare is less discretionary than other purchases. In addition, many patients passed over primary care and attempted to self-diagnose, before visiting a specialist.
However, despite this rise in revenue, the Specialist Doctors industry has been burdened with cost pressures, including rising labor and liability expenses and the price of new technology. These trends have forced the average operating profit margin down in 2013. In response to heightened costs, specialists are increasingly working in group practices, which is evidenced by a fall in the number of industry operators. That is to say, industry operations declined at an average annual rate during the five years to 2013. Additionally, only about 20.0% of medical students choose to enter primary care. Regulators and government authorities are expected to structure reimbursements to encourage more students to become generalists, in order to cut down on the cost of care for Medicare and Medicaid patients. This potential regulation, which is part of the Patient Protection and Affordable Care Act of 2010, could threaten industry profitability in the future.
The Specialist Doctors industry is highly fragmented and has a low level of concentration. The largest four companies (Memorial Sloan-Kettering Cancer Center, Children's Hospital of Philadelphia, Children's Hospital Boston and NYU Hospital for Joint Diseases) are estimated to account for less than 3.0% of industry revenue (see IBISWorld report 62111b for major player market shares). According to IBISWorld Industry Analyst Sally Lerman, “while the economic environment is forecast to improve during the next five years, profit growth is expected to be mild through 2018.” Meanwhile, an aging population and healthcare reform will bolster demand for industry services, as more people gain healthcare insurance coverage starting in 2014. “The uptick in the number of patients demanding care will help boost revenue during the next five years,” says Lerman.
For more information, visit IBISWorld’s Specialist Doctors in the US industry report page.
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IBISWorld industry Report Key Topics
A specialist doctor is a physician whose practice is limited to a particular branch of medicine or surgery. This industry includes establishments or health practitioners with a Doctor of Medicine (MD) or Doctor of Osteopathy (DO) degree. These individuals primarily practice specialized medicine (e.g. anesthesiology, oncology and ophthalmology) or surgery. This industry does not include primary care physicians or mental health specialists.
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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