The aging of the population will increase demand for industry services because people typically require more medical care as they age.
New York, NY (PRWEB) March 20, 2015
The Speech-Language Pathologists industry has experienced steady conditions and stable growth during the past five years. The industry, which comprises health practitioners that primarily evaluate, diagnose and treat speech, language, cognitive-communication and swallowing disorders, typically services clients in schools, healthcare facilities and hospitals. In recent years, rising student enrollment rates have stimulated demand for the industry's diagnostic and treatment services. Most importantly, increased access to health insurance as a result of healthcare reform has better enabled individuals to afford industry services, as many speech-language pathology services are covered by health insurance. As a result, industry revenue is expected to increase at an annualized rate of 2.6% during the five years to 2015, nearing $3.1 billion in 2015.
The passage of the Patient Protection and Affordable Care Act (PPACA) of 2010 has been a boon to the industry. According to IBISWorld Industry Analyst Dmitry Diment, “Under the healthcare reform law, subsidized state and federal healthcare exchanges have expanded private health insurance rolls since 2014 by mandating that all individuals obtain coverage or face a penalty. As a result, more individuals have obtained private health insurance coverage, better enabling them to access industry services.” Moreover, the PPACA has increased the number of individuals with government health insurance by expanding access to Medicaid. Consequently, in states that decided to participate in the expanded Medicaid program, the number of people covered rose substantially. In states where Medicaid covers speech-language pathology services, industry operators have benefited substantially.
These trends are expected to continue in the next five years. “Growth of the industry's main markets, students and the elderly, is expected to remain strong,” says Diment. “In particular, the aging of the population will increase demand for industry services because people typically require more medical care as they age.” Although the PPACA will continue to increase access to industry services by expanding health insurance rolls, the industry is expected to face pressure from falling Medicare reimbursement rates, stymying profit growth. Nonetheless, revenue is projected to continue rising during the five years to 2020.
For more information, visit IBISWorld’s Speech-Language Pathologists in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments of health practitioners that primarily evaluate, diagnose and treat speech, language, cognitive-communication and swallowing disorders.
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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