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2015 Physician Market Report

2015 Physician Market Report

Executive Summary

MARKET-AT-A-GLANCE

The physician office market continues to add more new initiatives to its list of priorities in order to meet the challenges of both today and the future. Physicians in large numbers are either selling their practices to become hospital employees or are merging with hospitals to form integrated delivery networks (IDNs). Those who remain in practices are juggling the effects of consumerism and the increase in the number of newly-insured, as well as the competition from retail providers.

KEY TOPICS

The market changes listed above are further augmented by the rapid growth of both retail clinics and telehealth. Physicians are faced with increasing options and demands in the area of information technology. A result of these increasingly rapid and diverse changes is the increasing number of physicians who say they are burned out and planning to leave the field or retire. Physicians are facing similar challenges whether in private practice or in community health centers, ambulatory surgery centers or urgent care. A major change in reimbursement for physician office labs is also expected to have major impact by 2017.

HEALTHCARE POLICY

How a physician is reimbursed for services under Medicare experienced a major quality-directed overhaul in 2015, with changes to the Sustainable Growth Rate (SGR) legislation. The Physician Quality Reporting System, Value-Based Payment Modifier and Electronic Health Record Meaningful Use will all be consolidated into one Merit-Based Incentive Payment System (MIPS). The new bill will also keep the Children’s Health Insurance Program funded through September of 2017.

GHX SALES DATA

The data from the Global Healthcare Exchange (GHX) Market Intelligence program provides statistics on overall growth in physician office sales through distribution, as well as for top product categories by both dollars and units for the prior calendar year. Of the $40.2 billion in overall healthcare sales through distribution as reported by GHX for 2014, the physician office market represented the third largest portion of those sales, after acute care and home healthcare. Physician office sales were more than double that of long term care or treatments centers, and showed a slight increase over 2013 physician office distributed sales reported to GHX. In growth by specialties, oncology far outpaced all others, with a double-digit uptick in sales by both dollars and units.


MARKET-AT-A-GLANCE
Physicians Dealing with Many Initiatives
Primary Care Physician Demand Projected to Increase
Physician Specialties Unchanged Despite Changing Market
Operating Costs Vary Based on Specialty
Other Key Operating Cost Data
Larger Practices Are More Likely Affiliated
Mergers and Acquisitions Deal Volume Down
No Significant Increase in Patient Volume or Acuity Attributed to ACA
KEY TOPICS
Teleheath Shortens Wait Times, Offers Savings
More Than One-Third of Employers Offer Telemedicine Insurance Coverage
Patients Support Physician Use of Technology
Primary Care Physicians Still Not Maximizing Adoption, Use of Information Technology Tools
Electronic Health Record Penalties Begin
By 2025, Physician Shortage Projected to Grow by Up to 90,000
Nearly Half of Physicians Feel Burned Out
How Physicians Are Coping with Burnout
Physician Office Labs Are a $1.5 Billion Market
Lab Reimbursements Set to Be Overhauled
Community Health Centers (CHCs) Better Funding, More Staff
Community Health Center Patients By Source of Insurance, 2010-2019
Key Challenges for Ambulatory Surgery Centers
Retail Healthcare Continues to Grow
HEALTHCARE POLICY
Medicare Sustainable Growth Rate (SGR) Reform Becomes a Reality
Medicare Expenses Grow, SGR Funds CHIP
Quality Measures Consolidation, Overhaul
GHX SALES DATA
Physician Market Up 2.66% from 2013 to 2014
Top Physician Product Categories, 2013 vs 2014 (in Dollars and Units)
Top 10 Growing Physician Product Categories, 2013 vs 2014 (in Dollars and Units)
Top 10 Physician Subspecialty Product Categories, 2013 vs 2014 (in Dollars and Units)

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