The 2017 Physician Market Report looks at how consolidation, reimbursement trends, and consumer demands are impacting physician offices.
- In 2016, Americans made more than 884 million physician office visits
- 58% of physician practices anticipate medical-surgical supply budget increases
- Three-quarters of physician practices receive support from a nurse practitioner or physician assistant
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.
1. Market Overview
2. Population Growth Will Drive Future Demand In Primary Care Market
3. Affordable Care Act (ACA) Increased Practice Volume, Changed Payer Mix
4. Additional Patient Volume Drives Physician Practice Supply Budgets Upward
5. 40% Of All Physicians Are 56 And Older
6. Physician Owners More Likely Than Employed Physicians To Be Planning A Change Of Course
7. Fewer Than Half Of Physicians Have An Ownership Stake In Their Practice
8. Physician Shortage, Employment Trends Limit Access to Primary Care
9. Most Practices Receive Support From Physician Assistants, Nurse Practitioners
10. Financial Concerns Motivate Physicians To Seek Acquisition
11. Surgical Sub-Specialty Groups Most Likely To Be Physician-Owned
12. Increase In Physician Practices Offering In-Office Testing
13. Practices Offer Televisits To Enhance Patient Relationships
14. Looking To Collect Payments, Practices Offer Price Transparency To Patients
15. 67% Of Physician Offices Are UsingElectronic Health Record (EHR) Software
16. Physicians Burdened By Paperwork, Administration
17. Medicare Payment Models Incentivizing Quality Took Effect In 2017
18. Physicians Not Prepared For New Quality Payment Models
19. Patient Experience Determines Quality Measurement, Compensation
20. Physician Participation In ACOs Has Grown
21. Majority Of Physicians Practice In A Single-Specialty Group
22. Majority Of Physician Offices Have One Physician
23. Community Healthcare Centers Serve 25 Million Patients
24. Medicaid Key Source Of Community Health Center Revenue
25. Urgent Care Market Valued At $15 Billion
26. Urgent Care Centers Planning for Continued Growth
27. Retail Clinics Drive Growth for Point-of-Care Testing, Vaccines
28. GHX Reports $45.1 Billion In Total Sales Through Distribution in 2016
29. GHX Lists Top Medical Office Products Sold Through Distribution
30. GHX Lists Top Physician Specialties By Distributed Sales