US Physician Groups Market Research Report By Type of Physician Groups (Independent Physician Groups, Hospital-Affiliated Physician Groups, Multispecialty Physician Groups, Single Specialty Physician Groups), By Service Offered (Primary Care Services, Specialty Care Services, Emergency Care Services, Preventive Care Services), By Practice Size (Small Practices, Medium Practices, Large Practices) and By Payer Mix (Public Payers, Private Insurers, Self-Pay) - Forecast to 2035

US Physician Groups Market Overview

As per MRFR analysis, the US Physician Groups Market Size was estimated at 23.04 (USD Billion) in 2023. The US Physician Groups Market Industry is expected to grow from 25 (USD Billion) in 2024 to 40 (USD Billion) by 2035. The US Physician Groups Market CAGR (growth rate) is expected to be around 4.365% during the forecast period (2025 - 2035).

The global impacts and factors alter the changing trends in the US Physician Groups Market. The transition towards value-based care as compared to the previous fee-for-service model is a significant market driver. The patient-centered model improves outcomes resulting in reduced costs. There is a shift in focus around the coordination of care among various providers due to the emphasis on preventative care and management of chronic illnesses.

Integration of technology like electronic health records and telemedicine is facilitating, if not accelerating these changes. Such technological advancements enable, and patients acquire enhanced efficiency and satisfaction from their care, which make it easier for physician groups to share information with one another.

The growing market opportunities in the US stem from the increasing demand for specialized medical services as demographics shift with aging populations that suffer from chronic diseases. Opportunities for expansion might be available for physician groups focusing geriatric and chronic illness specialists as baby boomers continue to retire. There is also growing opportunities for primary care and mental health services in poorly served regions, which demonstrates the responsiveness of the country towards providing health services beyond basic needs.

There has been an increase in collaboration recently between physician groups and technology companies in improving patient engagement as well as optimizing business operations. The area of compliance is changing due to steps being taken to minimize the administrative workload placed on healthcare providers and to foster innovation within physicians groups even further. These trends are part of the broader effort to improve the quality of healthcare services while managing the intricacies within the US healthcare system.

US Physician Groups Market Drivers

Increasing Demand for Chronic Disease Management

The US Physician Groups Market Industry is experiencing a significant rise in demand for chronic disease management as the prevalence of chronic conditions such as diabetes, heart disease, and obesity continues to grow. According to the Centers for Disease Control and Prevention (CDC), approximately 60% of adults in the United States have at least one chronic condition, and about 40% have two or more. This trend is pushing physician groups to focus more on integrated care models that offer comprehensive management of these diseases.

As organizations like the American Medical Association (AMA) advocate for coordinated care strategies, the demand for physician groups capable of managing chronic diseases is expected to increase over the coming years. Furthermore, the implementation of value-based care models emphasizes the need for improved patient outcomes, leading to greater funding and resources directed towards chronic disease management within the US Physician Groups Market Industry.

Technological Advancements in Healthcare

Rapid technological advancements in healthcare are a major driver for growth within the US Physician Groups Market Industry. Innovations such as telemedicine, electronic health records (EHR), and health information technology have transformed the way physicians deliver care. A report from the Office of the National Coordinator for Health Information Technology (ONC) noted that about 86% of office-based physicians in the US reported using EHR systems, facilitating streamlined patient care and data management.

This trend is not only improving efficiency but also enhancing patient outcomes through better access to medical information and telehealth services. As technology continues to advance, physician groups adopting these innovations will gain a competitive edge, ultimately driving market expansion.

Shift Towards Value-Based Care Models

The shift towards value-based care models is significantly influencing the US Physician Groups Market Industry. With traditional fee-for-service models facing criticism for promoting unnecessary healthcare costs, payers including Medicare and Medicaid are increasingly incentivizing physician groups to deliver high-quality, cost-effective care. According to the Centers for Medicare & Medicaid Services (CMS), the number of Medicare beneficiaries enrolled in value-based care programs is expected to reach over 30 million by 2025.

This transition presents an opportunity for physician groups to focus on preventive care, chronic disease management, and coordinated healthcare delivery systems. Established organizations such as the National Alliance on Mental Illness (NAMI) and the American Hospital Association (AHA) advocate for these systemic changes, further propelling the market forward.

US Physician Groups Market Segment Insights:

Physician Groups Market Type of Physician Groups Insights

The Type of Physician Groups segment within the US Physician Groups Market showcases a diverse landscape that plays a vital role in the overall healthcare delivery system. This market segmentation includes Independent Physician Groups, Hospital-Affiliated Physician Groups, Multispecialty Physician Groups, and Single Specialty Physician Groups, each contributing uniquely to the healthcare needs across the nation. Independent Physician Groups are esteemed for their autonomy, allowing them to offer personalized care without the constraints often found in larger organizations; they are particularly appealing to patients seeking intimate and tailored healthcare experiences.

On the other hand, Hospital-Affiliated Physician Groups leverage the resources and infrastructure of hospitals, leading to improved access to advanced medical technologies and support services, thus enhancing treatment capabilities and patient outcomes. Multispecialty Physician Groups stand out in the market for their ability to house various specialists in one location, promoting integrated care and efficient patient management. This model has gained traction as healthcare increasingly shifts toward coordinated care efforts, particularly with the rise of chronic disease management initiatives.

Moreover, Single Specialty Physician Groups focus on specific areas of treatment, allowing for deep expertise and high-quality care in those fields, which can lead to better patient satisfaction and clinical outcomes. The growth dynamics of the US Physician Groups Market are supported by various trends, including an increasing emphasis on value-based care and the adoption of new technologies to enhance patient engagement. Additionally, the demographic trends indicating an aging population and increasing chronic health conditions provide opportunities for all types of physician groups to expand their services.

However, challenges such as regulatory pressures and the need for interoperability among different healthcare systems continue to impact their operations. Understanding these segments and their contributions not only reflects the nuances within the US healthcare ecosystem but also highlights the shifting preferences of patients toward personalized, coordinated, and specialized services in medicine.

Physician Groups Market Service Offered Insights

The US Physician Groups Market, particularly in the context of Service Offered, plays a crucial role in the healthcare landscape. This market encompasses various vital services including Primary Care Services, Specialty Care Services, Emergency Care Services, and Preventive Care Services. Primary Care Services are fundamental as they serve as the first point of contact in the healthcare system, addressing a wide range of health issues and promoting overall wellness. Specialty Care Services cater to specific health needs, providing advanced interventions and treatments by specialists, which is essential for managing complex conditions.

Emergency Care Services are critical for immediate response and treatment of acute health crises, often saving lives and minimizing long-term health impacts. Preventive Care Services focus on proactive measures to avert illnesses, encouraging a healthier population and reducing healthcare costs in the long run. The increasing demand for personalized and patient-centered care is driving growth across these areas, supported by advancements in technology and a push towards value-based care. The US Physician Groups Market is responding to demographic shifts, particularly the aging population, further expanding the significance and innovations within these service categories.

The combination of these services underpins the foundation of the healthcare system, enhancing accessibility, improving outcomes, and ultimately shaping the future of healthcare delivery in the US.

Physician Groups Market Practice Size Insights

In the US Physician Groups Market, the Practice Size segment is essential for understanding how healthcare services are structured and delivered. Small Practices, often characterized by personalized care, have a significant role in providing accessible healthcare and maintaining patient relationships, making them critical for local communities. Medium Practices facilitate improved operational efficiencies and enable better resource sharing, thus playing a pivotal role in balancing accessibility with specialized care offerings. Large Practices, on the other hand, dominate the landscape by leveraging economies of scale, enabling a broader range of services and advanced technologies, thus enhancing the overall patient experience.

As the healthcare landscape evolves, each practice size faces unique challenges, including regulatory compliance and reimbursement issues, but they also enjoy opportunities for growth through telemedicine and integrated care models. Overall, the segmentation of Practice Size within the US Physician Groups Market provides valuable insights into tailoring care delivery strategies and optimizing health outcomes for diverse patient populations. Understanding these dynamics is crucial for stakeholders looking to navigate the changing healthcare environment.

Physician Groups Market Payer Mix Insights

The Payer Mix segment within the US Physician Groups Market is a crucial aspect that reflects the diverse sources through which healthcare services are financed. Public Payers, which include government-funded programs, continue to hold significant market share as they cater to large populations requiring essential medical services. This category is vital for maintaining access to care, especially for low-income individuals and the elderly. Meanwhile, Private Insurers play a pivotal role by facilitating a more extensive array of healthcare offerings and personalized treatment options.

This sector often drives innovations in service delivery and patient engagement, reflecting the changing dynamics of consumer demand in the healthcare landscape. Self-Pay options, though less dominant, have gained traction, particularly as patients seek flexibility in managing healthcare expenses. Overall, the Payer Mix segment illustrates the complexities of funding healthcare in the US and highlights ongoing trends in consumer preferences and regulatory policies that shape the US Physician Groups Market. Market growth in this segment is influenced by evolving reimbursement models, legislative changes, and a focus on value-based care, creating both challenges and opportunities for stakeholders within the industry.

US Physician Groups Market Key Players and Competitive Insights:

The US Physician Groups Market is characterized by a rapidly evolving landscape, where competition intensifies among healthcare providers, insurers, and integrated care systems. With a growing emphasis on value-based care and patient-centered services, physician groups must adapt to changing regulations, reimbursement models, and patient expectations. This environment fosters innovation and strategic alliances among various players, leading to enhanced service offerings and improved patient outcomes. The drive for efficiency and higher quality care is pushing physician groups to adopt advanced technologies, implement care coordination strategies, and invest in population health management. As the market matures, the competitive dynamics will increasingly hinge on the ability of physician groups to differentiate themselves through specialized services, strategic partnerships, and comprehensive care models.

DaVita operates prominently within the US Physician Groups Market, primarily focusing on providing high-quality healthcare services with a specialization in kidney care and dialysis services. The company has established a strong market presence due to its robust network of outpatient dialysis centers and a dedicated team of healthcare professionals committed to delivering superior patient care. DaVita's strengths lie in its comprehensive care programs that not only address the medical needs of kidney disease patients but also encompass education and support programs to enhance patient engagement. This patient-centric approach has allowed DaVita to foster long-term relationships with patients, thereby strengthening its market foothold and enhancing service offerings. The company’s commitment to innovation in care delivery and its ongoing investments in quality improvement initiatives further solidify its competitive advantage in the market.

Humana has carved out a substantial niche in the US Physician Groups Market by offering a varied range of health insurance products integrated with comprehensive healthcare services. The company's key offerings include Medicare Advantage plans, individual and family health insurance, and wellness programs designed to address the diverse needs of its members. As a formidable player in the market, Humana enhances its presence through strategic partnerships and collaborations with healthcare providers, focusing on integrated care solutions that emphasize preventative care and chronic disease management. The company’s strengths include its strong brand recognition, extensive member base, and solid financial health, allowing it to invest in technology and expand its service lines. Humana has also engaged in mergers and acquisitions to bolster its market position, emphasizing vertical integration to deliver more cohesive healthcare experiences to its members. This level of investment in innovative care practices and the pursuit of effective healthcare delivery systems further enhances Humana's competitiveness within the US Physician Groups Market.

Key Companies in the US Physician Groups Market Include:

• DaVita


• Humana


• Ascension Health


• Kaiser Permanente


• UnitedHealth Group


• Cigna


• Community Health Systems


• HCA Healthcare


• Baylor Scott & White Health


• Tenet Healthcare


• Mayo Clinic


• Centene Corporation


• Anthem


• Health Net


• Cleveland Clinic

US Physician Groups Market Industry Developments

In the US Physician Groups Market, significant developments include the rising consolidation among major healthcare players. Recently, in September 2023, Cigna announced its plan to acquire a specialized telehealth provider, aiming to enhance its digital service offerings in response to the growing demand for telemedicine. Meanwhile, UnitedHealth Group completed its acquisition of Change Healthcare in January 2023, which is expected to streamline administrative processes and improve patient care delivery. Kaiser Permanente has also made strides by establishing partnerships with various technology firms to enhance patient engagement and experience.

The market is seeing robust growth, driven by an aging population and an increasing prevalence of chronic diseases. In 2022, the market valuation of physician groups saw a notable rise, primarily due to increased investments in healthcare infrastructure and innovations. Major organizations like Ascension Health and HCA Healthcare are investing significantly to expand their service lines and improve access to care, aligning with government initiatives to enhance healthcare services. Overall, these dynamics are shaping a competitive landscape in the US Physician Groups Market that is increasingly focused on technology integration and patient-centered care.

Physician Groups Market Segmentation Insights

Physician Groups Market Type of Physician Groups Outlook

• Independent Physician Groups


• Hospital-Affiliated Physician Groups


• Multispecialty Physician Groups


• Single Specialty Physician Groups

Physician Groups Market Service Offered Outlook

• Primary Care Services


• Specialty Care Services


• Emergency Care Services


• Preventive Care Services

Physician Groups Market Practice Size Outlook

• Small Practices


• Medium Practices


• Large Practices

Physician Groups Market Payer Mix Outlook

• Public Payers


• Private Insurers


• Self-Pay

Report Attribute/Metric	Details
Market Size 2023	23.04 (USD Billion)
Market Size 2024	25.0 (USD Billion)
Market Size 2035	40.0 (USD Billion)
Compound Annual Growth Rate (CAGR)	4.365% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	DaVita, Humana, Ascension Health, Kaiser Permanente, UnitedHealth Group, Cigna, Community Health Systems, HCA Healthcare, Baylor Scott & White Health, Tenet Healthcare, Mayo Clinic, Centene Corporation, Anthem, Health Net, Cleveland Clinic
Segments Covered	Type of Physician Groups, Service Offered, Practice Size, Payer Mix
Key Market Opportunities	Value-based care models, Telehealth expansion, Data analytics integration, Aging population services, Enhanced patient experience technologies
Key Market Dynamics	value-based care adoption, regulatory changes impact, technological advancements integration, patient-centered care focus, consolidation among physician groups
Countries Covered	US