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.


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