US Physician Groups Market Size

ID: MRFR/HC/13162-HCR

128 Pages

Rahul Gotadki

October 2025

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...

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Us Physician Groups Size

US Physician Groups Market Growth Projections and Opportunities

Many factors influence the U.S. physician groups market, which impacts the healthcare system. Key issue: shifting legal environment. The US healthcare business must observe several laws. These include payment, quality, and EHRs. Healthcare policy and regulatory changes may impact medical organizations' operations and finances, affecting their decision-making and strategy. Value-based care is another market driver. Recently, value-based payment methods have grown more essential than fee-for-service approaches. This modification aims to enhance patient outcomes and save expenses. Physician groups are increasingly using value-based contracts, which pay for quality and efficiency. Medical groups must embrace innovative treatment methods, invest in technology, and collaborate with other healthcare institutions to enhance patient outcomes. Consolidation also impacts the U.S. physician groups market. Medical organizations have been merging and buying one other to form larger healthcare corporations. Consolidation may boost economies of scale, payer negotiating power, and technology adoption resources. But it also raises concerns about anti-competitive practices and healthcare costs. Medical firms must weigh the merits and downsides of combining to adapt to the changing market. The U.S. medical group market relies on technology adoption and integration. Telemedicine, EHRs, and other digital health technologies are becoming more crucial to healthcare. Technology may enhance patient care, simplify regular chores, and aid data-driven decision-making. As they employ technology to enhance speed and patient outcomes, medical organizations must consider high adoption costs, sharing issues, and data security concerns. Population affects the U.S. medical group market. We need more healthcare since people are living longer and having chronic diseases. Due to this demographic shift, medical organizations must prepare for elderly patients' healthcare demands. These strategies should emphasize preventative care, chronic illness management, and multidisciplinary treatment. Money and remuneration affect medical organizations' capacity to survive. Compensation rates, payment schemes, and payer mix might impact medical organizations' financial stability. Flexibility and financial planning are needed to keep medical organizations financially viable and provide high-quality service.

Market Highlights

Author

Rahul Gotadki

Assistant Manager

He holds an experience of about 7+ years in Market Research and Business Consulting, working under the spectrum of Life Sciences and Healthcare domains. Rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. His expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. In addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives

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FAQs

What is the current valuation of the US Physician Groups Market?

The US Physician Groups Market was valued at 373.66 USD Billion in 2024.

What is the projected market valuation for the US Physician Groups Market in 2035?

The market is projected to reach 694.89 USD Billion by 2035.

What is the expected CAGR for the US Physician Groups Market from 2025 to 2035?

The expected CAGR for the market during the forecast period 2025 - 2035 is 5.8%.

Which types of physician groups are included in the market segments?

The market segments include Independent Physician Groups, Hospital-Affiliated Physician Groups, Multispecialty Physician Groups, and Single Specialty Physician Groups.

What were the valuations for Independent Physician Groups and Hospital-Affiliated Physician Groups in 2024?

In 2024, Independent Physician Groups were valued at 80.0 to 150.0 USD Billion, while Hospital-Affiliated Physician Groups were valued at 100.0 to 200.0 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the US Physician Groups Market Size was estimated at 373.66 USD Billion in 2024. The US Physician Groups industry is projected to grow from 395.34 USD Billion in 2025 to 694.89 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.8 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US Physician Groups Market is experiencing a transformative shift towards value-based care and technological integration.

The adoption of value-based care is reshaping reimbursement models across the market. Telehealth integration is becoming increasingly prevalent, particularly in the North American region. Market consolidation trends are evident, with independent physician groups remaining the largest segment while multispecialty groups are rapidly growing. The aging population and rising healthcare costs are driving the demand for both primary and specialty care services.

US Physician Groups Market

CAGR

5.8%

Market Size & Forecast

2024 Market Size	373.66 (USD Billion)
2035 Market Size	694.89 (USD Billion)
CAGR (2025 - 2035)	5.8%
Largest Regional Market Share in 2024	North America

Major Players

UnitedHealth Group (US), Anthem (US), Aetna (US), Cigna (US), Humana (US), Kaiser Permanente (US), <a href="https://www.mayoclinic.org/medical-professionals">Mayo Clinic </a>(US), Cleveland Clinic (US), HCA Healthcare (US), <a href="https://www.tenethealth.com/careers/for-physicians">Tenet Healthcare</a> (US)

Market Trends

The US Physician Groups Market is currently experiencing a transformative phase characterized by evolving dynamics and increasing complexity. The landscape is shaped by various factors, including technological advancements, regulatory changes, and shifting patient expectations. As healthcare delivery models adapt, physician groups are increasingly focusing on value-based care, which emphasizes quality over quantity. This shift necessitates a reevaluation of operational strategies, as groups seek to enhance patient outcomes while managing costs effectively. Furthermore, the integration of telehealth services appears to be gaining traction, allowing for improved access to care and greater convenience for patients. In addition, the market is witnessing a trend towards consolidation, as smaller practices merge with larger entities to enhance their competitive edge. This consolidation may lead to improved resource allocation and shared expertise, potentially benefiting patient care. However, it also raises concerns regarding market concentration and the potential impact on pricing and service availability. Overall, the US Physician Groups Market is navigating a complex environment, where adaptability and innovation are crucial for success in the coming years.

Value-Based Care Adoption

The transition towards value-based care is reshaping the operational frameworks of physician groups. This model prioritizes patient outcomes and satisfaction over the volume of services provided, compelling groups to implement strategies that enhance care quality while controlling costs.

Telehealth Integration

The incorporation of telehealth services is becoming increasingly prevalent within the US Physician Groups Market. This trend facilitates greater patient access to healthcare, allowing for remote consultations and follow-ups, which can lead to improved patient engagement and satisfaction.

Market Consolidation Trends

The ongoing consolidation within the market suggests a strategic response to competitive pressures. Smaller practices are merging with larger organizations to leverage shared resources and expertise, potentially enhancing service delivery and operational efficiency.

US Physician Groups Market Market Drivers

Aging Population

The aging population in the United States is a critical driver of the US Physician Groups Market. As the demographic shifts towards an older age group, the demand for healthcare services increases significantly. By 2030, it is projected that one in five Americans will be 65 years or older, leading to a higher prevalence of chronic diseases and complex health conditions. This demographic trend compels physician groups to adapt their services to cater to the unique needs of older patients. Consequently, the US Physician Groups Market is likely to experience growth as healthcare providers expand their offerings to include geriatric care, chronic disease management, and preventive services tailored for this age group.

Regulatory Changes

Regulatory changes play a pivotal role in shaping the US Physician Groups Market. Policies such as the Affordable Care Act have expanded access to healthcare, resulting in an influx of patients seeking medical services. Additionally, ongoing reforms aimed at reducing healthcare costs and improving quality are influencing how physician groups operate. For example, the shift towards value-based care models encourages physician groups to focus on patient outcomes rather than the volume of services provided. This regulatory environment compels physician groups to adapt their business strategies, invest in quality improvement initiatives, and enhance care coordination, thereby driving growth within the US Physician Groups Market.

Rising Healthcare Costs

Rising healthcare costs are a significant driver of the US Physician Groups Market. As expenses associated with medical care continue to escalate, patients are seeking more affordable and accessible healthcare options. This trend has led to an increase in the demand for physician groups that offer cost-effective services without compromising quality. Additionally, the pressure to contain costs is prompting physician groups to explore innovative care delivery models, such as telehealth and integrated care systems. By addressing the financial concerns of patients, physician groups can position themselves favorably within the US Physician Groups Market, ultimately driving growth and sustainability.

Technological Advancements

Technological advancements are reshaping the landscape of the US Physician Groups Market. Innovations such as electronic health records (EHR), artificial intelligence, and data analytics are enhancing the efficiency and quality of care. The integration of these technologies allows physician groups to streamline operations, improve patient outcomes, and reduce costs. For instance, the use of EHR systems has been shown to improve patient care coordination and reduce medical errors. As technology continues to evolve, physician groups that embrace these advancements are likely to gain a competitive edge in the US Physician Groups Market, ultimately leading to better patient satisfaction and increased operational efficiency.

Increased Focus on Preventive Care

There is a growing emphasis on preventive care within the US Physician Groups Market. As healthcare costs continue to rise, both patients and providers are recognizing the importance of preventive measures in reducing the incidence of chronic diseases. Physician groups are increasingly adopting strategies that prioritize preventive care, such as routine screenings, vaccinations, and health education. This shift not only improves patient health outcomes but also reduces long-term healthcare expenditures. The US Physician Groups Market is likely to benefit from this trend as more physician groups implement preventive care programs, thereby attracting a larger patient base and enhancing their overall service offerings.

Market Segment Insights

By Type: Independent Physician Groups (Largest) vs. Multispecialty Physician Groups (Fastest-Growing)

In the US Physician Groups Market, Independent Physician Groups play a significant role, holding the largest market share among other types of physician groups. These groups demonstrate a strong presence due to their ability to provide personalized care and maintain direct patient relationships, enabling them to thrive in a competitive healthcare environment. Furthermore, Hospital-Affiliated Physician Groups contribute to the overall market dynamics, leveraging the resources and support of hospitals, while Single Specialty Physician Groups cater to specific medical fields, creating a diverse marketplace of options for patients. Contrarily, Multispecialty Physician Groups are emerging as the fastest-growing segment within this market. Their growth can be attributed to the increasing patient demand for comprehensive care under one roof and the convenience of accessing various specialists simultaneously. This trend toward integrated and coordinated care is driving the expansion of Multispecialty Physician Groups, as healthcare systems increasingly recognize the value of collaborative practices that enhance patient outcomes and streamline services.

Independent Physician Groups (Dominant) vs. Single Specialty Physician Groups (Emerging)

Independent Physician Groups remain a dominant force in the US Physician Groups Market, characterized by their autonomy and commitment to personalized care. These groups have built strong relationships with their patients, allowing for continuity of care and trust. Their flexibility in operations further enables them to adapt to changing healthcare policies and patient needs. On the flip side, Single Specialty Physician Groups are emerging, focusing on specific areas of medicine which allows them to develop expertise and specialized services that are highly valued by patients seeking targeted treatments. While they operate within a narrower scope, their niche positioning can lead to strong patient loyalty and significant referral networks, essential for growth in a competitive environment.

By Service Offered: Primary Care Services (Largest) vs. Specialty Care Services (Fastest-Growing)

In the US Physician Groups Market, the primary care services segment holds the largest market share, as these services form the backbone of healthcare delivery. They cater to a broad patient base, offering comprehensive healthcare management, which drives significant demand. In contrast, specialty care services, while smaller in market share, are witnessing rapid growth due to the increasing prevalence of complex health conditions that require specialized medical attention. The growth in specialty care services is fueled by advancements in medical technology, the rise of <a href="https://www.marketresearchfuture.com/reports/chronic-disease-management-market-981">chronic diseases</a>, and an aging population seeking specialized treatment options. This segment adapts quickly to market needs, with physicians focusing on specific areas of healthcare that demand high-level expertise. As the healthcare landscape evolves, the integration of telemedicine and personalized healthcare further contributes to the expansion of both primary and specialty care services.

Primary Care Services (Dominant) vs. Emergency Medical Care Services (Emerging)

Primary care services are characterized by their accessibility, continuity, and comprehensiveness, playing a crucial role in preventive health management and routine care. They form the first point of contact for patients within the healthcare system, emphasizing long-term patient-physician relationships that enhance health outcomes. This trusted care model not only fosters preventive care but also ensures that patients receive timely referrals to specialty care when needed. On the other hand, emergency medical care services are emerging as vital components of the healthcare ecosystem, particularly in emergency situations. They are designed to provide immediate attention and stabilize patients critical conditions. While still developing, this segment is gaining traction due to the increasing need for urgent medical responses driven by social and environmental factors.'

By Practice Size: Small Practices (Largest) vs. Large Practices (Fastest-Growing)

In the US Physician Groups Market, the distribution of practices by size reveals significant insights. Small practices currently dominate the market, accounting for a substantial portion of total practices. They represent the backbone of primary healthcare delivery, often providing personalized care and building strong patient relationships. Meanwhile, large practices are emerging as a formidable force, capturing an increasing share due to the trend toward consolidation and the ability to leverage economies of scale.

Small Practices (Dominant) vs. Large Practices (Emerging)

Small practices are characterized by their intimate patient care and community integration, allowing for tailored health services that enhance patient satisfaction. They often face challenges such as limited resources and difficulty in scaling operations. In contrast, large practices are rapidly expanding, driven by technological advancements and a push towards integrated care models. They offer diverse services, attract a broader patient base, and are increasingly adopting innovative healthcare technologies, positioning them for significant growth in the evolving market landscape.

By Payer Mix: Public Payers (Largest) vs. Private Insurers (Fastest-Growing)

In the US Physician Groups Market, the payer mix is dominated by Public Payers, which hold a significant portion of the overall market share. This segment includes government-funded programs such as Medicare and Medicaid, which have become increasingly pivotal due to the aging population and rising healthcare needs. Meanwhile, Private Insurers, while smaller in market share, are witnessing rapid growth as more individuals are opting for private health plans and employer-sponsored insurance amidst changing healthcare policies.

Public Payers (Dominant) vs. Private Insurers (Emerging)

Public Payers represent a dominant segment in the US Physician Groups Market, driven primarily by Medicare and Medicaid, which cater to a large and growing demographic. These programs not only provide essential coverage for the elderly and low-income individuals but also establish a steady revenue stream for physician groups. Conversely, Private Insurers are emerging, reflecting a shift towards personalized healthcare plans and increasing competition to attract diverse patient populations. As more Americans look for tailored healthcare solutions, the private sector is innovating, offering plans that focus on value-based care. The contrast between these segments illustrates a diverse payer landscape that physicians must navigate.

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Regional Insights

North America : Healthcare Innovation Leader

The North American market for physician groups is primarily driven by an aging population, increasing chronic diseases, and a shift towards value-based care. The U.S. holds the largest market share at approximately 80%, followed by Canada at around 10%. Regulatory support, such as the Affordable Care Act, has catalyzed growth by expanding access to healthcare services and incentivizing preventive care. In this competitive landscape, the U.S. is home to major players like UnitedHealth Group, Anthem, and Kaiser Permanente, which dominate the market. The presence of renowned healthcare institutions such as Mayo Clinic and Cleveland Clinic further strengthens the region's position. The focus on integrated care models and technological advancements continues to shape the market dynamics, ensuring robust growth in the coming years.

Europe : Emerging Healthcare Collaborations

The European physician groups market is experiencing growth driven by collaborative healthcare models and increasing investments in digital health technologies. Countries like Germany and the UK are leading, with Germany holding approximately 30% of the market share, followed by the UK at 25%. Regulatory frameworks, such as the European Health Union, are enhancing cross-border healthcare cooperation and improving patient access. Leading countries are focusing on integrating services and enhancing patient outcomes through innovative care delivery models. Key players include Bupa and Fresenius, which are expanding their networks to meet rising demand. The competitive landscape is characterized by partnerships between public and private sectors, aiming to streamline healthcare services and improve efficiency across the region.

Asia-Pacific : Rapidly Evolving Healthcare Sector

The Asia-Pacific region is witnessing a rapid evolution in its physician groups market, driven by increasing healthcare expenditure and a growing middle class. Countries like China and India are at the forefront, with China holding about 35% of the market share, followed by India at 20%. The region's regulatory environment is becoming more supportive, with initiatives aimed at enhancing healthcare access and quality. Competitive dynamics are shifting as local and international players expand their presence. Major healthcare providers are investing in technology and infrastructure to meet the rising demand for healthcare services. The focus on preventive care and chronic disease management is reshaping the market, with significant opportunities for growth in telemedicine and digital health solutions.

Middle East and Africa : Transforming Healthcare Landscape

The Middle East and Africa region is undergoing a transformation in its physician groups market, driven by increasing investments in healthcare infrastructure and a rising demand for quality medical services. The UAE and South Africa are leading the market, with the UAE holding approximately 25% of the share, followed by South Africa at 20%. Regulatory reforms are enhancing healthcare delivery and encouraging private sector participation. The competitive landscape is characterized by a mix of local and international players, with significant investments from organizations like Mediclinic and Netcare. The focus on improving healthcare access and quality is leading to innovative care models, including integrated health services and telehealth solutions, which are expected to drive further growth in the region.

Key Players and Competitive Insights

The US Physician Groups Market is characterized by a dynamic competitive landscape, driven by factors such as technological advancements, regulatory changes, and evolving patient expectations. Major players like UnitedHealth Group (US), Anthem (US), and Cigna (US) are strategically positioned to leverage these trends. UnitedHealth Group (US) focuses on integrating technology into healthcare delivery, enhancing patient engagement through digital platforms. Anthem (US) emphasizes partnerships with local healthcare providers to expand its reach and improve service delivery. Cigna (US) is increasingly investing in personalized care models, aiming to enhance patient outcomes while managing costs. Collectively, these strategies contribute to a competitive environment that prioritizes innovation and patient-centric care.

In terms of business tactics, companies are increasingly localizing their operations to better serve regional markets, optimizing supply chains to enhance efficiency. The market appears moderately fragmented, with a mix of large integrated health systems and smaller physician groups. The influence of key players is substantial, as they often set industry standards and drive competitive practices that smaller entities may follow.

In August 2025, UnitedHealth Group (US) announced a partnership with a leading telehealth provider to enhance its virtual care offerings. This strategic move is significant as it aligns with the growing demand for accessible healthcare solutions, particularly in underserved areas. By expanding its telehealth capabilities, UnitedHealth Group (US) positions itself to capture a larger share of the market, catering to patients who prefer remote consultations.

In September 2025, Anthem (US) launched a new initiative aimed at integrating behavioral health services into primary care settings. This initiative is crucial as it addresses the increasing recognition of mental health as a vital component of overall health. By embedding behavioral health into primary care, Anthem (US) not only enhances patient care but also differentiates itself in a competitive market that is increasingly focused on holistic health solutions.

In October 2025, Cigna (US) unveiled a new AI-driven analytics platform designed to improve patient outcomes through predictive modeling. This development is particularly noteworthy as it reflects the growing trend of utilizing artificial intelligence in healthcare. By harnessing data analytics, Cigna (US) aims to identify at-risk patients earlier, thereby facilitating timely interventions and potentially reducing healthcare costs.

As of October 2025, the competitive trends in the US Physician Groups Market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing service delivery and operational efficiency. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology integration, and supply chain reliability, as organizations strive to meet the changing demands of the healthcare landscape.

Key Companies in the US Physician Groups Market market include

Industry Developments

Q4 2024: SCA Health Acquires OrthoAlliance (Optum/United Healthcare) SCA Health, a subsidiary of UnitedHealth Group, acquired OrthoAlliance, an orthopedic management services organization, for approximately $1.4 billion. The acquisition expands SCA Health’s network in orthopedic and sports medicine services across Ohio, Indiana, and Kentucky.
Q4 2024: Cardinal Health acquired a majority stake in GI Alliance (GIA) for $2.8 billion Cardinal Health acquired a majority stake in GI Alliance, a large physician-owned gastroenterology group, for $2.8 billion. The deal was completed in November 2024 and marks Cardinal Health’s entry into physician practice management.
Q2 2025: McKesson Acquires Controlling Interest in PRISM Vision Holdings, LLC McKesson Corporation signed a definitive agreement to acquire an 80% controlling interest in PRISM Vision Holdings, a provider of ophthalmology and retina management services, for $850 million. The acquisition aims to expand McKesson’s specialty solutions platform.
Q2 2024: Houston Healthcare joins Emory Healthcare system Houston Healthcare, which includes two hospitals and several outpatient facilities and physician practices, joined the Emory Healthcare system after receiving regulatory approval. The deal was announced in August 2024 and completed in June 2025.
Q2 2025: Doylestown Health joins University of Pennsylvania Health System Doylestown Health, a 245-bed community teaching hospital with associated physician practices, joined the University of Pennsylvania Health System following regulatory approval. The hospital was renamed Penn Medicine Doylestown Health.
Q2 2025: University of Mississippi Medical Center acquires Merit Health Madison The University of Mississippi Medical Center acquired Merit Health Madison, a hospital with 67 licensed beds and associated physician practices, expanding its capacity and unifying operations.

Future Outlook

US Physician Groups Market Future Outlook

The US Physician Groups Market is projected to grow at a 5.8% CAGR from 2024 to 2035, driven by technological advancements, increasing demand for healthcare services, and value-based care models.

New opportunities lie in:

Expansion of telehealth services to enhance patient access and engagement.Development of integrated care models to streamline operations and improve patient outcomes.Investment in data analytics for personalized treatment plans and operational efficiency.

By 2035, the US Physician Groups Market is expected to be robust, driven by innovation and strategic growth initiatives.

Market Segmentation

US Physician Groups Market Type Outlook

Independent Physician Groups
Hospital-Affiliated Physician Groups
Multispecialty Physician Groups
Single Specialty Physician Groups

US Physician Groups Market Payer Mix Outlook

Public Payers
Private Insurers
Self-Pay

US Physician Groups Market Practice Size Outlook

Small Practices
Medium Practices
Large Practices

US Physician Groups Market Service Offered Outlook

Primary Care Services
Specialty Care Services
Emergency Medical Care Services
Preventive Care Services

Report Scope

MARKET SIZE 2024	373.66(USD Billion)
MARKET SIZE 2025	395.34(USD Billion)
MARKET SIZE 2035	694.89(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.8% (2024 - 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	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Integration of telehealth services enhances patient access in the US Physician Groups Market.
Key Market Dynamics	Market consolidation intensifies as physician groups adapt to regulatory changes and technological advancements in healthcare delivery.
Countries Covered	North America, Europe, APAC, South America, MEA