Ambulatory Health Care Services
Companies in this industry, which include physicians, dentists, outpatient care centers, and imaging and diagnostic facilities, provide health care services to ambulatory patients. Major companies include Apria Healthcare, DaVita, and LabCorp (all based in the US), as well as Bayshore HealthCare (Canada), Fresenius (Germany), and Sonic Healthcare (Australia).
Global spending on health care, including ambulatory care, totals about $7.5 trillion, or about 10% of the world gross domestic product (GDP), according to the World Health Organization (WHO). Spending on ambulatory care services in industrialized countries vary by nation. The US spends about 5% of its GDP on ambulatory care; Canada, Japan, Australia, and major European countries spend about 3% to 4%; and other industrialized countries typically spend between 1% and 2%, according to the Organisation for Economic Co-operation and Development (OECD).
The ambulatory health care services industry in the US comprises about 610,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $1 trillion.
Pressure on the health care industry to drive down costs is pushing more care into lower-cost ambulatory settings and away from hospitals and nursing homes. Payments are increasingly based on whether providers meet quality standards. Demand for health care services is driven by demographics and advances in medical care and technology. The profitability of individual companies depends on efficiency, reputation, and expertise.
Large companies have advantages in buying supplies and in negotiating contracts with health insurers. Small companies can compete successfully by serving a limited geographical area, offering specialized services, or building a local reputation for quality care. The US ambulatory health care industry is highly fragmented: the top 50 companies generate only about 15% of revenue.
Products, Operations & Technology
Major services include care provided by physicians, which accounts for about 50% of industry revenue; dentists and outpatient care centers account for
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms