US Physician Groups Market Trends

US Physician Groups Market Overview

US Physician Groups Market Size was valued at USD 315.5 Billion in 2022. The physician groups market industry is projected to grow from USD 333.8 Billion in 2023 to USD 524.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2024 - 2032). Many market drivers, such as the prevalence of different medical diseases and the requirement for early diagnosis, are credited with the industry's growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

US Physician Groups Market Trends

• Growing Affinity for Inorganic Growth Strategies Among Market Participants to Boost the Market Growth

The number of physician group mergers and acquisitions has sharply increased in the last few years. Small-group physicians often become part of bigger groups because to their heavy workloads, expensive administrative overhead, and lack of financial stability. Furthermore, there were a lot of mergers and acquisitions as a result of larger physician organizations' growing focus on growing and expanding their services across the United States. Gastro Health, for instance, collaborated with Springfield Gastroenterology in October 2022. Three doctors and one advanced practice provider are teaming forces with Springfield Gastroenterology. Through this cooperation, the organization wanted to deliver exceptional care and personalized attention. Additionally, in September 2021, two nonprofit healthcare organizations—Intermountain Healthcare and SCL Health—merged to establish a new model of health systems that will serve Colorado, Montana, Kansas, Idaho, Nevada, and Utah (see below). In addition, market expansion is expected as a result of large investments made by private equity firms to purchase smaller physician practices in order to form partnerships and offer financial stability.

Physicians in the United States have been shifting from smaller to larger group practices in recent years. This is due to a number of variables, such as the growing inclination among younger physicians to work in larger groups and the considerable financial and technical problems associated with managing smaller groups. The Annals of Internal Medicine released research indicating that more doctors are leaving small group practices and joining larger practices. For instance, according to data released by the American Medical Association (AMA) recently, the percentage of small groups—that is, groups with ten or less physicians—has steadily decreased, falling from 61.4% in 2012 to 53.7% in 2020. It is anticipated that this movement of doctors from smaller to larger groups will improve patient care and cut expenses, which will accelerate market expansion. Additionally, larger medical groups have superior administrative support, which encourages more doctors to join larger groups. Thus, driving the physician groups market revenue.

US Physician Groups Market Segment Insights

US Physician Groups Number of Physicians Insights

The US Physician Groups market segmentation, based on number of physicians includes 2 to 10, 11 to 24, 25 to 50, and More than 50. The 2 to 10 segment dominated the market mostly. Over-40-year-old traditional physicians are expected to lead the market since they are more likely to work in small groups. Additionally, doctors who like to work independently or in small groups are supportive of the segment's expansion and would prefer not to switch organizations.

US Physician Groups Ownership Insights

The US Physician Groups market segmentation, based on ownership, includes Physician-Owned, Hospital-Owned, and Others. The hospital-owned category generated the most income. Hospitals have acquired a larger ownership position in American physician organizations throughout time. Additionally, as doctors found it difficult to keep groups together during the epidemic, there has been a rise in the acquisition of physician practices, which has accelerated segmental growth.

Figure 1: US Physician Groups Market, by Ownership, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

US Physician Groups Specialty Insights

The US Physician Groups market segmentation, based on specialty, includes Primary Care, Pediatrics, OB/GYN, Ophthalmology, Orthopedics, Psychiatry, Cardiology, Dermatology, and Others. The primary care category generated the most income. The increased demand for primary care services including family practice, general internal medicine, and others by patients due to the growing prevalence of acute and chronic illnesses, as well as the need for early diagnosis and appropriate treatment of these conditions, are expected to fuel market expansion.

US Physician Groups Payor Insights

The US Physician Groups market segmentation, based on payor, includes Public Health Insurance and Private Health Insurance/Out-of-pocket. The private health insurance/out-of-pocket category generated the most income. One of the major drivers of the market's expansion is the nation's growing use of private health insurance due to comprehensive health plans. Furthermore, features like no waiting time, pre-existing condition coverage, and others support market expansion.

US Physician Groups Type Insights

The US Physician Groups market segmentation, based on type, includes Single-Specialty and Multi-Specialty. The multi-specialty category generated the most income. The market is growing because of organizations that have multi-specialty facilities that provide high-quality care at cheaper costs, and because solo practitioners are shifting toward multi-specialty services because they provide significant advantages, like more financial security.

US Physician Groups Country Insights

Over the course of the projection period, a stable growth rate is expected to be achieved by the U.S. physician group market. The American healthcare system is incredibly robust, and growing healthcare spending is one of the main factors propelling the country's physician group market's expansion. It is anticipated that rising US healthcare costs will provide patients with improved facilities and encourage more people to use doctor treatments. For instance, according to CMS data, US healthcare spending climbed by 2.7% in 2021 to reach $4.3 trillion, or $12,914 per person. Furthermore, there is a growing need for physician-group practices in the US because to the expanding number of cases of numerous health issues. In addition, it is anticipated that government initiatives to improve population health and healthcare spending will further propel the U.S. physician group market. Moreover, health issues, especially those pertaining to the bones, are more common in the elderly population. As people age, their bones become more fragile and are more likely to break, which increases the incidence of osteoporosis in this age range. The US Census Bureau estimates that there were 55.8 million Americans 65 and older in 2020, making up 16.8% of the country's total population. The need for coordinated efforts to address various health issues is increasing due to the aging population, which is driving increased demand for physician groups in the United States.

Physician Groups Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the physician groups market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, physician groups industry must offer cost-effective items.

Major players in the physician groups market are attempting to increase market demand by investing in research and development operations includes The Permanente Medical Group (U.S.), Optum, Inc. (U.S.), Ascension (U.S.), Beaumont Health (U.S.), HealthCare Partners IPA (U.S.), Northwell Health (U.S.), Brigham and Women’s Hospital (U.S.), Advocate Aurora Health (U.S.), Cleveland Clinic (U.S.), Mayo Foundation for Medical Education and Research (MFMER) (U.S.), and NYU Langone Hospitals (U.S.).

Key Companies in the physician groups market include

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  The Permanente Medical Group (U.S.)

  
  


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  Optum, Inc. (U.S.)

  
  


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  Beaumont Health (U.S.)

  
  


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  Cleveland Clinic (U.S.)

  
  


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  HealthCare Partners IPA (U.S.)

  
  


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  Ascension (U.S.)

  
  


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  Northwell Health (U.S.)

  
  


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  Brigham and Women’s Hospital (U.S.)

  
  


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  Advocate Aurora Health (U.S.)

  
  


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

  
  


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  NYU Langone Hospitals (U.S.)

  
  

Physician Groups Industry Developments

January 2024: Commons Clinic launched the Center for Spine Economics Outcomes & Research to invest USD100 million over a decade, aiming at expanding musculoskeletal coverage provided by this value-based physician group. The center is likely to test and research new models that will shift spine care towards community-based accountable care networks and away from hospitals.

January 2024: Cleveland Guardian Baseball Company LLC renewed its partnership agreement with the Cleveland Clinic. As a result of this extended deal, the Cleveland Clinic became the Official Healthcare Provider of the Cleveland Guardians. Besides that, it maintained its status as a claims partner of Family Deck and also represented a sponsor for the Family Value Pack ticket offer.

November 2023: Cleveland Clinic entered into an exclusive partnership with Canon Inc., focused on advancing medical imaging innovation worldwide.

October 2023: Optum Inc. and ProHealth Care entered into a strategic partnership in October 2023 to improve patient care through innovative technology solutions while maintaining ProHealth's commitment to patients & community.

July 2023: UT Physicians started the Interventional Psychiatry Clinic (IPC) to offer integrated care for treatment-resistant psychiatric conditions. The clinic is based on expanding existing interventional psychiatry services and developing new ones.

May 2023: South Shore Neurologic Associates partnered with NYU Langone Health System in May 2023 to improve specialized care quality within Suffolk County. There are now three NYU Langone South Shore Neurologic Association locations in Riverhead, Patchogue, and Islip due to this collaboration.

March 2022:Two medical real estate industry experts founded a merger and acquisition firm that targets physicians and ASCs. John White and Ben Brickweg started it to make sure doctors receive the best discount rates.

January 2022:To concentrate on hiring and increasing treatment, USF Tampa General Hospital established a physician group. The new entity was established with the goals of increasing healthcare access for the entire community, obtaining money for research, and serving as a means of recruiting top medical personnel.

US Physician Groups Market Segmentation

US Physician Groups Number of Physicians Outlook

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  2 to 10

  
  


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  11 to 24

  
  


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  25 to 50 

  
  


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  More than 50

  
  

US Physician Groups Ownership Outlook

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  Physician-Owned

  
  


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  Hospital-Owned

  
  


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  Others

  
  

US Physician Groups Specialty Outlook

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  Primary Care

  
  


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  Pediatrics

  
  


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  OB/GYN

  
  


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  Ophthalmology

  
  


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  Orthopedics

  
  


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  Psychiatry

  
  


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  Cardiology

  
  


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  Dermatology

  
  


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  Others

  
  

US Physician Groups Payor Outlook

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  Public Health Insurance

  
  


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  Private Health Insurance/Out-of-pocket

  
  

US Physician Groups Type Outlook

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  Single-Specialty

  
  


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  Multi-Specialty