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2017 Physician Office Market Report

2017 Physician Office Market Report

Market-At-A-Glance
In the past year, 74% of U.S adults visited a primary care physician, while 38% visited a specialty physician. Annually, there are 884.7 million physician office visits, which bring in $513 billion in revenue to practices. An aging population and newly insured patients has driven new volume for physician offices, and demand for medical supplies. The leading factor for growth in the primary care market over the next five years is population growth.

One In Four Physician Practices Are Owned By Hospitals
The cost of maintaining a practice and cuts to reimbursement have caused many physicians to sell their practices and become health system employees.
• In 2016, for the first time, less than half of physicians reported having an ownership stake in their practice.
• The cost of maintaining a practice and reimbursement cuts are the leading motivators for physicians to sell their practices.
• Hospitals are looking to acquire practices to expand their services and to improve their ability to meet community needs.

Practices Are Adapting To Healthcare Consumerism
Practices are taking steps to attract new patients and cultivate patient loyalty:
• 75% of physicians participate in patient satisfaction surveys.
• The number of practices offering rapid laboratory tests, which have a strong correlation to patient satisfaction, have increased 22% since 2010.
• Patients value the cost-effectiveness and convenience of televisits, more than one in ten practices now offer this service to their patients.

Physicians Feel Burdened By Regulations, Bureaucracy
Physicians spend significant hours on paperwork, and find dealing with paperwork and regulations to be the least satisfying aspects of practicing medicine.

• 49% would not recommend medicine as a career to young people.

• 47% say they spend 10 hours a week or more on paperwork and administration.


Market Overview
Population Growth Will Drive Future Demand In Primary Care Market
Affordable Care Act (ACA) Increased Practice Volume, Changed Payer Mix
Additional Patient Volume Drives Physician Practice Supply Budgets Upward
40% Of All Physicians Are 56 And Older
Physician Owners More Likely Than Employed Physicians To Be Planning A Change Of Course
Fewer Than Half Of Physicians Have An Ownership Stake In Their Practice
Physician Shortage, Employment Trends Limit Access to Primary Care
Most Practices Receive Support From Physician Assistants, Nurse Practitioners
Financial Concerns Motivate Physicians To Seek Acquisition
Surgical Sub-Specialty Groups Most Likely To Be Physician-Owned
Increase In Physician Practices Offering In-Office Testing
Practices Offer Televisits To Enhance Patient Relationships
Looking To Collect Payments, Practices Offer Price Transparency To Patients
67% Of Physician Offices Are UsingElectronic Health Record (EHR) Software
Physicians Burdened By Paperwork, Administration
Medicare Payment Models Incentivizing Quality Took Effect In 2017
Physicians Not Prepared For New Quality Payment Models
Patient Experience Determines Quality Measurement, Compensation
Physician Participation In ACOs Has Grown
Majority Of Physicians Practice In A Single-Specialty Group
Majority Of Physician Offices Have One Physician
Community Healthcare Centers Serve 25 Million Patients
Medicaid Key Source Of Community Health Center Revenue
Urgent Care Market Valued At $15 Billion
Urgent Care Centers Planning for Continued Growth
Retail Clinics Drive Growth for Point-of-Care Testing, Vaccines
GHX Reports $45.1 Billion In Total Sales Through Distribution in 2016
GHX Lists Top Medical Office Products Sold Through Distribution
GHX Lists Top Physician Specialties By Distributed Sales

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