Increased demand allows operators to charge higher fees, boosting both revenue and profit.
New York, NY (PRWEB) September 13, 2014
Healthcare employers, hospitals, insurance companies, pharmaceutical developers and medical device manufacturers turn to operators in the Healthcare Consultants industry to improve operating efficiencies and manage risk. “Over the past five years, demand for healthcare consultants has increased due to technological advances in the healthcare sector and the changing regulatory environment,” according to IBISWorld Industry Analyst Jocelyn Phillips. Moreover, the 2010 Patient Protection and Affordable Care Act (PPACA) expanded access to healthcare to millions of Americans, driving growth in the overall healthcare sector and stimulating demand for consulting accordingly. However, budgets remained tight for many industry customers due to the lingering effects of the recession. As a result, industry revenue is expected to grow just 3.2% per year on average during the five years to 2014, to reach $10.8 billion.
In the aftermath of the recession, many healthcare companies availed themselves of industry services for advice on improving efficiencies, raising market share and increasing margins. “In recent years, companies have used healthcare consultants more frequently as corporate profit has improved and companies have had more available funding for consultancy services,” says Phillips. As corporate profit increases 5.0% in 2014, industry revenue is expected to increase 3.8%. With growing demand, industry operators have been able to charge higher fees, particularly for specialized or technical services. Coupled with overall higher demand due to the PPACA, this trend has boosted industry profitability in recent years and is expected to continue to do so during the next five years, when revenue is expected to grow 5.5% per year on average to $14.2 billion in 2019.
The industry's relatively high profit margin has enticed entrants in recent years. The number of specialty independent practices has declined moderately during the past five years, as general consulting firms have acquired these companies to gain entrance into niche markets. Despite this trend, the total number of companies is expected to increase during the five years to 2014. Expansion is expected to slow during the five years to 2019, as larger players continue their aggressive expansion campaigns to garner more market share.
For more information, visit IBISWorld’s Healthcare Consultants in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry provides specialist advice to businesses involved in healthcare fields, such as hospitals, physicians, pharmaceutical companies and insurance providers. These services include advice related to financial management, human resources, information technology and other operations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.