The Medical Group Practice Management in the US Industry Market Research Report Has Been Updated by IBISWorld
New York, NY (PRWEB) June 20, 2014 -- Over the past decade, the model of healthcare delivery has gradually transformed. Burdened by medical school debt and seeking regular hours, more young physicians are opting out of private practices and instead joining hospitals or other medical groups. In addition, faced with rising operating costs and reimbursement pressure, a number of older physicians are selling their practices and moving into salaried jobs. According to IBISWorld Industry Analyst Sally Lerman, “In 2014, only about one-third of US physicians will be truly independent (i.e. not affiliated with any group), compared with 57.0% in 2000.”
The transition away from small practices is also being driven by growing concerns over rising healthcare costs, medical errors and changes in payment systems. Joining larger practices, such as industry groups, offers numerous advantages, including increased negotiating power with insurance carriers, greater purchasing power, operating efficiencies and the ability to withstand any demand fluctuations. Consequently, the Medical Group Practice Management industry is growing as more physicians integrate into larger provider networks. During the five years to 2014, IBISWorld estimates that industry revenue has grown at an annualized 6.2% to $295.6 billion, including 4.5% growth in 2014 alone.
“During the next five years, industry revenue is forecast to increase at a similar rate, driven by healthcare reform provisions and an aging population,” says Lerman. There are a number of provisions that are expected to support coordinated healthcare delivery, thus encouraging physicians and other providers to consolidate. For example, the implementation of electronic health records (EHRs) can be complicated and expensive for small healthcare providers without adequate financial and technical resources. Therefore, smaller providers are encouraged to join larger providers that offer support systems. Additionally, providers that demonstrate the meaningful use of EHRs will receive financial incentives under healthcare reform.
At the same time, ongoing shortages of medical personnel may restrain rapid industry growth over the next five years. According to the Association of American Medical Colleges, the shortage of physicians has the potential to reach 130,600 by 2025. In light of healthcare reform that will expand health coverage and subsequent demand for healthcare services, the dearth of physicians and nurses will adversely impact the industry by delaying care.
The Medical Group Practice Management industry is highly fragmented. Industry leader Kaiser Permanente Medical Group earns less than 1.0% of industry revenue. Further reflecting high fragmentation, only about 3.9% of medical group practice management companies encompass more than 20 physicians. Demonstrating the relatively small size of industry companies, only about 6.4% of medical sites managed by the industry see more than 100 patients in a single day, with about 75.6% serving one to 50 patients daily.
For more information, visit IBISWorld’s Medical Group Practice Management in the US industry report page.
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IBISWorld industry Report Key Topics
The Medical Group Practice Management industry comprises medical groups of physicians of various disciplines, including primary care physicians and specialist doctors. Medical group practices are defined as three or more physicians engaged in the practice of medicine as a legal entity sharing business management, facilities, records and personnel.
Industry Performance
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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
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Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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