HIDA 2019 Physician Office Market Report

HIDA 2019 Physician Office Market Report

Market-At-A-Glance
The U.S. Office of the Actuary estimates the market for physician and clinical services at $728 billion in 2018. The office further predicts market growth of 64.8% by 2027 ($1.2 trillion).

The aging U.S. population contributes to this spending growth. By 2060, over half of the U.S. population is expected to be age 75+, a demographic that spends four times more on healthcare than the average American.

Americans average nearly 900 million physician office visits annually, of which an estimated 54.5% take place with a primary care physician.

Nurse Practitioners, Physician Assistants To Mitigate Physician Shortages
In 2017, the healthcare industry had nearly 22,000 physician vacancies, a figure that could grow to 121,000 by 2030. Physician extenders such as nurse practitioners and physician assistants are projected to fill these vacancies. From 2016 to 2026, the number of U.S. nurse practitioners is projected to increase 31% while the number of physician assistants is estimated to increase 37%.

Burnout Is Widespread And Costly
In 2019, just under half of physicians reported feeling burned out. The top reason cited for burnout was too many bureaucratic tasks; despite efforts to lower administrative burdens, from 2014 to 2018, the number of hours physicians spent weekly on non-clinical paperwork increased from 10.6 to 11.4 hours.

Fifty-three percent of physicians say burnout contributes adversely to patient care, clinical errors; a combination that costs the industry an estimated $4.6 billion annually.

Employed physicians are more likely to report dissatisfaction than their independent counterparts; however, rates remain high for both groups.

Cost, Convenience, Accessibility Drive Patients To Seek Primary Care
Services Outside The Physician Office
Urgent care facilities and retail clinics are increasing their share of primary care services. Costs are typically lower in both settings. Urgent care; for example, costs an average of $168 per visit, 10 times less than an average ER visit. Competitive costs have spurred an increase in construction, with the number of facilities increasing 8% from 2017 to 2018. Urgent care centers see an average of 89 million patients annually of which 29% are primary care.

Similarly, retail clinics have experienced 500% growth in the number of facilities over the past 14 years, with costs and convenience as the main drivers. Most are within 10 minutes of more than 30% of U.S. households, and offer many of the services available in a typical medical office.


Please note: the online download version of this report is for a global site license.


Executive Summary
Physician Office Market Overview
Medical Practices Trend Larger
Medical Supplies Average 11% Of Physician Office Operating Expenses
Majority Practice In A Single-Specialty Group
Top 50 U.S. Medical Group Companies Operate 10.8% Of Practices
Cardiovascular Surgeons Generate More Revenue For Affiliated Hospitals, Earn Higher Salaries
Physician Shortage Estimated To Reach 121,000 By 2030
Supply Of New Physicians Slowed By Lack Of Residency Matches Despite Continued High Demand
Nurse Practitioners, Physician Assistants Help To Offset Low Physician Supply
Patient Volumes Increase For All Clinical Services
Physicians Use Many Methods To Manage Volumes
Physician Office Payer Mix Projected To Shift Towards Medicare
Most Physicians Accept Medicare
22 Million Enrolled In Medicare Advantage In 2019, Up 8% From 2018
Physician Burnout Costs Estimated At $4.6 Billion Annually
Hospitals, Health Systems Continue To Acquire Practices
2019 Marks The First Year Of MIPS Penalties, Bonuses
CMS Moves To Compress The Range Of Positive MIPS Adjustments In 2022
Changes In MIPS Aim To Help Small Practices Cope With Reimbursement Challenges
Qualifications Tightened For APM Bonuses
Comprehensive Primary Care Plus Payment Model To Launch In 2020
Patients Prefer Urgent Care Centers For General Symptoms
High Patient Satisfaction, Convenience Spur Growth In Retail Clinics
Majority Of Community Health Center Patients Are Uninsured Or Below Federal Poverty Level
CHCs Use Telehealth To Expand Service Areas
Salary Top Challenge For CHC Recruitment And Retention
Opioid Prescriptions Fall 33% Under Prescription Drug Monitoring Programs
POL Revenues Reach $4 Billion In 2018
GHX Reports $6.3 Billion In Physician Office Sales Through Distribution In 2018

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