Healthcare Services Industry Report Update Q3 2021

 In Healthcare, Healthcare Services, Industry Update

Industry Overview (Physician Practice)

The Physician Practice Management (PPM) industry has seen a resurgence in recent years. Over the past five years, revenue for the Physician Practice Management industry has expanded as more physicians have integrated into larger provider networks. Independent physicians continue to experience increased pressures and additional capital requirements to compete effectively in the market, manage commercial payor relationships, and meet increased compliance standards. Physicians will need to contribute more individual capital to maintain the status quo.

Key Trends

As the traditional model of healthcare delivery continues to gradually transform, Telehealth consultation may claim a more substantial role in various medical practices; however, the implementation of EHRs can be complicated for practices that lack resources.

The recent decline in demand for Physician Practice is a direct result of the COVID-19 (coronavirus) outbreak; however, the healthcare sector will likely continue experiencing a shortage of physicians and nurses. Despite this, it is expected that the continued effects of the Affordable Care Act will likely spur industry growth. It is also expected that industry relevant ACOs will continue to dominate the healthcare sector

 

 

Industry Overview (Home Health & Hospice)

The Home Care Providers industry is among the fastest growing healthcare industries in the United States. Home care saves patients billions of dollars every year by treating them in their own homes instead of hospitals. An aging population, the prevalence of chronic diseases, growing physician acceptance of home care, medical advancements and a movement toward cost-efficient treatment options from public and private payers have all fostered industry revenue growth. Despite strong growth, industry profit has been under pressure.

Key Trends

The largest payers for home care services are government programs, including Medicare and Medicaid. Although federal funding for Medicare and Medicaid has grown during the period, reimbursement for home healthcare agencies has declined significantly, causing industry profit to decline over the past five years. Moreover, healthcare reform has expanded access to insurance for some patients, but many states have chosen not to expand access to federal healthcare. As a result, industry operators have increased consolidation activity to combat lower profit. Larger companies are better able to negotiate with suppliers and can acquire the medications and materials that are used in home care at lower prices.

 

The U.S. healthcare industry is changing dramatically to better respond to the needs of the expanding chronically ill patient population. Healthcare is moving away from a fee-for-service (FFS) focus to a managed chronic care model. Recently, home care providers have benefited from an aging population; however, there currently exists a high demand for medical practice staffing. This high demand for staff is projected to increase nurses’ and physical therapists’ ability to command higher wages and benefits.

 

 

Industry Overview (Telehealth)

The Telehealth Services industry uses digital technology to deliver medical services and health education by connecting multiple users in different locations. Telehealth services include diagnosis, treatment, assessment, monitoring, communication and education. The industry includes a wide range of information, networking and digital imaging technologies, delivered primarily in three ways, including videoconferencing, remote patient monitoring, and store-and-forward technologies. Advances in communication technology and medical technology, such as wearable self-monitoring devices and digitized medical scans, have propelled the industry forward.

Key Trends

Advancements in communication and medical technology, as well as the medical community’s acceptance of telehealth services have propelled revenue growth within the industry. It is expected that the greater demand for medical services will likely drive demand for telehealth services.

As smartphones and tablets are increasingly replacing conventional record-keeping systems, clinical research studies validating the efficacy of telehealth treatment have augmented revenue growth.

 

 

FULL REPORT

 

Snapshot (Physician Practice)

Snapshot (Home Health & Hospice)

Snapshot (Telehealth)

Recent Posts

Leave a Comment

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.