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HIDA 2018 Physician Office Market Report

HIDA 2018 Physician Office Market Report

Market-At-A-Glance
Americans make 990.8 million visits to physician offices every year; 51% with primary care doctors and 49% with specialists.

By 2026, spending on physician and clinical services is projected to exceed $1 trillion annually. The aging U.S. population and rising rates of obesity are projected to increase demand for primary care services over the next decade.

Financial Concerns Affect Practice And Physician Priorities
The top three challenges reported by physician practices are financial in nature: declining reimbursement, collecting co-payments and deductibles, and reducing operating costs. Practices have prioritized hiring office staff to meet these bureaucratic and financial challenges.

Government is the largest source of revenue for practices. Half of revenue comes from government sources, while 42% of revenue comes from private insurance.

Government and private reimbursement rates are falling, while payer expectations are rising. In 2018, more practices were penalized than rewarded for their performance on CMS quality goals. In fact, the leading frustration expressed by physicians with their profession is government and third-party influence in healthcare.

Physicians, Patients Have Positive Views On Technology’s Role in Healthcare

More than three-quarters of patients think electronic healthcare records (EHRs) can improve the quality of care overall and for themselves personally, and they would like all of their physicians to have access to their EHR. Currently, 70% of all physician offices have EHR software.

Physicians also see a role for technology in helping to manage practices more effectively, particularly with capturing patient data and scheduling appointments.


Executive Summary
Annual Spend On Physician And Clinical Services To Exceed $1 Trillion By 2025
Majority Practice In A Single-Specialty Group
Two-Thirds Of Patients Satisfied With Primary Care Physician
Aging Population, Obesity, Insurance Access Drive Future Market Growth
Nearly Half Say Medical Supply Budgets Will Increase
Physician Office Market Remains Fragmented Despite Increased M&A
Government Funding Largest Source Of Practice Revenue
Few Clinicians Received Positive Adjustments From CMS Value-Based Care Programs
Physicians Concerned About Negative Impacts From Value-Based Care
Many Physicians See Loss of Autonomy As Detriment To Providing Care
Offices Prioritize Hiring Staff
Most Physicians Do Not Plan To Change How They Practice Medicine
Number Of Physicians Planning To Change Practice Models Declines
Supply And Demand Drives Salaries Upward
Work Pressure, Pace, Viewed As Patient Safety Risk
Physicians Think Technology Can Improve Practice Efficiency
70% Of Physician Offices Use EHR Software
Patients Seek Price Transparency To Plan Healthcare Expenses
One-Quarter Of Patients Postpone Primary Care Because Of Cost
Patients Use Online Resources To Gauge Provider Reputation
Pace Of Growth For Retail Clinics Faster In Urban Areas
Competition Increases In Urgent Care Market
Utilization Of Urgent Care Highest In Upper Midwest, Northeast
Majority of CHC Patients Are At Or Below The Federal Poverty Level
Visits To Community Health Centers Increased 64% In The Last Decade
Healthcare Consumer Interest In Telehealth Outpaces Physician Office Adoption
Use Of Wearable Devices By Healthcare Consumers Triples In Past Six Years
POLs Valued At $2.9 Billion In 2017
GHX Reports $5.7 Billion In Physician Office Sales Through Distribution In 2017
GHX Lists Top Physician Specialties By Distributed Sales

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