Medical Group Practice Management in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: February 2024
NAICS OD6029Revenue
$395.0bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
2m
Businesses
381k
Wages
$XXX.Xbn
Medical Group Practice Management in the US industry analysis
The role of medical group practice management providers in healthcare settings has expanded in recent years. An accelerating shift away from independent healthcare providers toward group settings has been the main driver behind the industry’s growth, while an evolving regulatory environment, an aging population and cost pressures have also encouraged healthcare providers’ decision to outsource. Outsourcing aspects of management help healthcare providers maintain compliance, improve efficiency and manage costs while upholding quality patient care. The pandemic’s unprecedented toll on healthcare providers’ labor, finances and infrastructure only strengthened these trends. Pandemic-related financial challenges pushed more providers toward group models, expanding the size of the industry’s potential market. At the same time, healthcare providers sought management services to adapt to staffing shortages and technology adoption. Outsourcing management will remain a popular option for medical groups as a solution to hiring challenges and rising costs in 2024. In all, revenue has been expanding at a CAGR of 8.2% to an estimated $197.0 billion over the past five years, including an expected 0.9% in 2024.
Trends and Insights
- Financial pressures are accelerating the shift from the independent practice to the group setting. Consolidation activity has been the main driver behind the rising growth of medical group practice management providers.
- A changing healthcare landscape incentivizes physicians to adopt group practice management providers. Rising pressures for family medicine physicians make them the largest adopter of the group practice model.
- Major metropolitan areas appeal to medical group practice management providers. Access to large patient pools and more healthcare professionals in metro areas create opportunities for providers.
- Patients see value in multifaceted healthcare delivery. Medical group practice management providers incentivize patients by offering primary, specialty and diagnostic care under one roof.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated $395.0bn in 2024.
Trends and Insights
An aging population's expanding medical needs boost healthcare spending
- Rising incomes, broader access to public and private insurance programs and the aging population's growing medical needs have supported rising healthcare expenditure in recent years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Shifts toward the group model and outsourcing will strengthen management providers
- Medical group practice management companies will have a mounting role as healthcare providers continue confronting the pandemic's strain on their infrastructure, labor and balance sheets.
Biggest companies in the Medical Group Practice Management in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Medical Group Practice Management in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Family practice, Internal medicine and Pediatrics. Family practice is the largest segment of the Medical Group Practice Management in the US.
Trends and Insights
Financial pressures incentivize family practice providers to shift to medical group practices
- Family practice physicians treat chronic conditions, evaluate symptoms and offer preventative care for patients of all ages.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Emergency & Other Outpatient Care Centers in the US
Complementors
- Primary Care Doctors in the US
- Specialist Doctors in the US
- Dentists in the US
- Chiropractors in the US
- Optometrists in the US
- Physical Therapists in the US
International industries
- Specialist Medical Services in Australia
- Specialist Medical Services in New Zealand
- Specialist Medical Practices in the UK
- Health Clinics in China
Table of Contents
About this industry
Industry definition
This industry comprises medical groups of physicians of various disciplines, including primary care physicians and specialist doctors. Medical group practices are defined as three or more physicians engaged in the practice of medicine as a legal entity sharing business management, facilities, records and personnel.
What's included in this industry?
Providing family practice servicesProviding internal medicine servicesProviding pediatric servicesProviding other medical and management servicesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
ACCOUNTABLE CARE ORGANIZATION (ACO)MEDICAL GROUP PRACTICEELECTRONIC HEALTH RECORDS (EHR)Industry Code
NAICS 62111 - Medical Group Practice Management in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Financial pressures are accelerating the shift from the independent practice to the group setting. Consolidation activity has been the main driver behind the rising growth of...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
A changing healthcare landscape incentivizes physicians to adopt group practice management providers. Rising pressures for family medicine physicians make them the largest ad...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Major metropolitan areas appeal to medical group practice management providers. Access to large patient pools and more healthcare professionals in metro areas create opportun...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Patients see value in multifaceted healthcare delivery. Medical group practice management providers incentivize patients by offering primary, specialty and diagnostic care un...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Healthcare delivery is fragmented. Medical group practice management providers support many types of physicians delivering a breadth of services, preventing any one provider ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Medicare and Medicare reimbursement reforms alter healthcare providers' financial health. A shift toward value-based care and changes to payment models incentivize the group ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wage growth across the health sector has emerged in the practice management settings. Wage expenses have jumped to their highest share on record as management providers work ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Medical Group Practice Management in the US industry in United States in 2024?
The market size of the Medical Group Practice Management in the US industry in United States is $395.0bn in 2024.
How many businesses are there in the Medical Group Practice Management in the US industry in 2024?
There are 381k businesses in the Medical Group Practice Management in the US industry in United States, which has declined at a CAGR of 3.4 % between 2019 and 2024.
Has the Medical Group Practice Management in the US industry in United States grown or declined over the past 5 years?
The market size of the Medical Group Practice Management in the US industry in United States has been growing at a CAGR of 2.1 % between 2019 and 2024.
What is the forecast growth of the Medical Group Practice Management in the US industry in United States over the next 5 years?
Over the next five years, the Medical Group Practice Management in the US industry in United States is expected to grow.
What does the Medical Group Practice Management in the US in United States include?
Providing family practice services and Providing internal medicine services are part of the Medical Group Practice Management in the US industry.
How competitive is the Medical Group Practice Management in the US industry in United States?
The level of competition is moderate and steady in the Medical Group Practice Management in the US industry in United States.
