Ambulatory Health Care Services
Description
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).
The global spending on health care, including ambulatory care, reached about $10 trillion in 2021, or about 10% of the world's gross domestic product (GDP), according to the World Health Organization (WHO). Spending on ambulatory care services in industrialized countries vary by nation. Health spending in the 29 countries classified as high income, public funding sources account for the largest share, while out-of-pocket spending declined.
The ambulatory health care services industry in the US comprises about 625,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $1 trillion.
COMPETITIVE LANDSCAPE
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 20% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services of ambulatory health care companies include patient care (about 65% of industry revenue), dental non-surgical intervention (about 5%), and medical diagnostic testing (about 5%). Other sources of revenue include medical and diagnostic laboratories, blood banks, rehabilitation therapy, ambulance services, and offices of other health practitioners such as chiropractors, optometrists, and mental health practitioners. Health care in the US is led by for-profit entities, an exception to the global norm of nationalized medicine.
Outpatient care centers include surgery, urgent care, and walk-in clinics, as well as family planning, mental health, and kidney dialysis facilities. Freestanding emergency rooms and walk-in care clinics are growing in popularity as they provide convenient access to care, and as health reform measures try to direct patients away from crowded, expensive hospital emergency rooms.
Firms are equipped with medical equipment and technology that allow doctors and other health care providers to examine patients' vital signs, make diagnoses, provide services, and prescribe or administer medication. Equipment costs range from a few dollars for disposable items such as sterile gloves and syringes to hundreds of thousands of dollars for X-ray, ultrasound, and other high-tech equipment. The number of patients seen by physicians varies by medical specialty, from primary care physicians to dentists.
Firms employ professional staff including doctors, nurses, and others with medical specialty degrees. Other employees include ultrasound technicians, rehabilitation therapy aides, and office administration staff. While medical staff members see patients and perform health care services, administrative staff members handle patient and insurance billing and also must be adept at navigating complex Medicare and Medicaid regulations. Some doctors have chosen not to take insurance and instead have moved to “concierge” or retainer practices, in which patients pay an annual fee to cover all services provided by the office. Such practices allow doctors to cut down on the size of their office support staff.
The global spending on health care, including ambulatory care, reached about $10 trillion in 2021, or about 10% of the world's gross domestic product (GDP), according to the World Health Organization (WHO). Spending on ambulatory care services in industrialized countries vary by nation. Health spending in the 29 countries classified as high income, public funding sources account for the largest share, while out-of-pocket spending declined.
The ambulatory health care services industry in the US comprises about 625,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $1 trillion.
COMPETITIVE LANDSCAPE
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 20% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services of ambulatory health care companies include patient care (about 65% of industry revenue), dental non-surgical intervention (about 5%), and medical diagnostic testing (about 5%). Other sources of revenue include medical and diagnostic laboratories, blood banks, rehabilitation therapy, ambulance services, and offices of other health practitioners such as chiropractors, optometrists, and mental health practitioners. Health care in the US is led by for-profit entities, an exception to the global norm of nationalized medicine.
Outpatient care centers include surgery, urgent care, and walk-in clinics, as well as family planning, mental health, and kidney dialysis facilities. Freestanding emergency rooms and walk-in care clinics are growing in popularity as they provide convenient access to care, and as health reform measures try to direct patients away from crowded, expensive hospital emergency rooms.
Firms are equipped with medical equipment and technology that allow doctors and other health care providers to examine patients' vital signs, make diagnoses, provide services, and prescribe or administer medication. Equipment costs range from a few dollars for disposable items such as sterile gloves and syringes to hundreds of thousands of dollars for X-ray, ultrasound, and other high-tech equipment. The number of patients seen by physicians varies by medical specialty, from primary care physicians to dentists.
Firms employ professional staff including doctors, nurses, and others with medical specialty degrees. Other employees include ultrasound technicians, rehabilitation therapy aides, and office administration staff. While medical staff members see patients and perform health care services, administrative staff members handle patient and insurance billing and also must be adept at navigating complex Medicare and Medicaid regulations. Some doctors have chosen not to take insurance and instead have moved to “concierge” or retainer practices, in which patients pay an annual fee to cover all services provided by the office. Such practices allow doctors to cut down on the size of their office support staff.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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