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U.S. Physician Groups Market to Reach USD 360.47 Billion by 2029; Availability of Adequate Reimbursement Policies to Propel Headway the Course for Market

February 17, 2023 | Healthcare

The global U.S. physician groups market size is projected to show robust growth by attaining USD 360.47 billion by 2029. Fortune Business Insights™ in its report titled “U.S. Physician Groups Market Size, Share & COVID-19 Impact Analysis, By Number of Physicians (2 to 10, 11 to 24, 25 to 50, and More than 50), By Ownership (Physician-owned, Hospital-owned, and Others), By Specialty (Primary Care, Pediatrics, OB/GYN, Ophthalmology, Orthopedics, Psychiatry, Cardiology, Dermatology, and Others), By Payor (Public Health Insurance and Private Health Insurance/Out-of-pocket), By Type (Single-specialty and Multi-specialty), and Forecasts, 2022-2029” observes that the market size in 2021 stood at USD 271.41 billion and reached USD 279.65 billion in 2022. The market is expected to witness a strong CAGR of 3.7% during 2022-2029. Physician groups are healthcare providers, where more than two physicians work and provide care to patients to improve healthcare outcomes. Increase in healthcare expenditure and availability of adequate reimbursement policies for patients are set to propel market growth.


Acquisition of LDO by Queens Medical Associates by Northwell Health to Set Progress for Market Growth


In January 2020, Northwell Health acquired Queens Medical Associates, aiming to expand its oncology network in New York, U.S. This acquisition helped the company in increasing the brand presence and broaden its services. The product portfolio is set to serve variegated consumer base in the market and therefore increase the market presence of the company.


Reduction in Revenue During Pandemic Led to Market Decline


The COVID-19 pandemic affected the market growth with decline in revenues as many small physicians’ groups left their practices and were employed by hospitals during the pandemic. For instance, according to Physicians Foundation’s 2021 Survey of America’s Physicians, about 32% of the physicians witnessed a reduction in staff and around 42% of the physicians reported a reduction in revenue generation during the pandemic. Post-pandemic, the recovery of the market is attributed to the market players observing a substantial increase in their revenue and patient visits.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/u-s-physician-groups-market-106510


Increasing Inclination of Solo Practitioners to Join Large Groups to Propel U.S. Physician Groups Market Growth


Increasing inclination of solo practitioners to join large groups of physicians is expected to fuel the preference for physician groups. Cost-effectiveness is one of the major factors that has increased the number of solo practitioners joining the larger U.S. groups of physicians. The HITECH Act creates incentives for healthcare-related information technology such as Electronic Health Record (EHR) systems. With this act, it is more practical for a larger group to have multiple physicians maintain an EHR system than for solo practitioners.  


Increase in Mergers and Acquisitions of Physician Groups to Expand the Market Share


For the past years, there has been an increase in mergers and acquisitions of small players. Due to high workload, high administrative cost, and less financial stability faced by the physicians working in small groups, they tend to merge with the larger groups. In September 2021, Intermountain Healthcare and SCL Health merged and created a model of health systems for providing services in six states such as Colorado, Montana, Kansas, Idaho, Nevada, and Utah.


Launch of New Care Homes by the Market Players to Drive Market Growth


Permanente Medical Group, Inc., Optum, Inc., and Ascension constituted about 60% of the total market in 2021, and Permanente Medical Group, Inc. contributed about 34.3%. The company's dominance is attributed to various strategic business activities it indulged in to expand and strengthen its market position. In October 2021, the Permanente Medical Group, Inc. launched Advanced Care at Home for patients to receive acute-level care and recovery services in the comfort and convenience of their homes.


Key Industry Development



  • July 2022: Agilon Health announced a long-term partnership with Entira Family Clinics and Richfield Medical Group for the transformation of healthcare by offering enhanced care for the group’s senior patients through a new value-based primary care program.


List of Key Companies Profiled in the Report:



  • The Permanente Medical Group (U.S.)

  • Optum, Inc. (U.S.)

  • Brigham and Women’s Hospital (U.S.)

  • Cleveland Clinic (U.S.)

  • HealthCare Partners IPA (U.S.)

  • Ascension (U.S.)

  • Northwell Health (U.S.)

  • Mayo Foundation for Medical Education and Research (MFMER) (U.S.)

  • Beaumont Health (U.S.)

  • Advocate Aurora Health (U.S.)

  • NYU Langone Hospitals (U.S.)


Further Report Findings



  • The market in the U.S. stood at USD 271.41 billion in 2021 due to increasing inclination of solo practitioners to join physician groups. Acquisition of independent practices by the hospital and corporate-owned groups and shifting focus to join larger groups are expected to drive the U.S. physician groups market share in the coming years.

  • The 2 to 10 segment accounted for the largest part as physicians who preferably don’t want to change their groups due to their desire to work autonomously or in small groups.


Table of Segmentation


























































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Number of Physicians, By Ownership, By Specialty, By Payor, and By Type



By Number of Physicians




  • 2 to 10

  • 11 to 24

  • 25 to 50

  • More than 50



By Ownership




  • Physician-owned

  • Hospital-owned

  • Others



By Specialty




  • Primary Care

  • Pediatrics

  • OB/GYN

  • Ophthalmology

  • Orthopedics

  • Psychiatry

  • Cardiology

  • Dermatology

  • Others



By Payor




  • Public Health Insurance

  • Private Health Insurance/Out-of-pocket



By Type




  • Single-specialty

  • Multi-specialty


U.S. Physician Groups Market
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  • 2021
  • 2018-2020
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