Offices in this industry provide general or specialized medical care. No major companies dominate.
Globally, there are about 10 million physicians (not including midwives, dentists, or other health personnel), according to the World Health Organization. China has the largest number of physicians at around 2.5 million; followed by India, with around 1 million; and the US, with around 800,000. Countries with the most physicians per capita include Cuba, with more than seven doctors per 1,000 population; Monaco, San Marino, and Greece, with more than six; and Austria, with about five.
The US physicians industry includes about 225,000 offices with combined annual revenue of about $495 billion.
Physicians are under pressure from government payers and insurers to lower costs while improving quality of care. The profitability of individual practices depends on the reputation, cost, operational efficiencies, and expertise of the physician and staff. Large practices have advantages in leveraging administrative processes and expensive diagnostic equipment. Small practices compete effectively by providing specialized skills and good customer service. Population growth, injury and illness rates, and demographics play a role in demand for services. Physicians practicing in urban areas generally have several direct competitors in the immediate geographic area, while access to care may be restricted in rural communities.
The US industry is highly fragmented: the top 50 firms account for about 15% of industry revenue. About 75% of all physician offices are small, with fewer than 10 employees (including the doctors); about 1% of offices have 100 or more employees. However, as reimbursements shift toward pay-for-performance protocols, more physicians are responding by joining group practices or health care networks.
Products, Operations & Technology
Operations of physician offices revolve around patient care, appointment scheduling, records management, and insurance processing. Typically, a patient
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms