The 2023 HIDA Physician Office Market Report

The 2023 HIDA Physician Office Market Report

Executive Summary
Market At-A-Glance
The physician and clinical services market is projected to reach $1.2 trillion by 2028. In 2023, spending on physician services represents 20.3% of all U.S. healthcare spending. Private health insurance remains the largest payer for physician services at 39% of the payer mix.

The market is dispersed, with an estimated 340,000 specialty physician offices and 175,000 primary care offices across the U.S.

Provider Shortage Increases As Physicians Change Jobs Due To Burnout
Nearly half of physicians changed jobs between 2020 and 2022, 40% due to burnout. By 2023, the U.S. is estimated to have a physician shortage between 38,000 and 124,000 physicians. The top motivators for physician employment change includes better work/life balance, compensation, and schedule flexibility. Almost 70% of surveyed physicians recommend employers increase support staff and reduce patient volumes to address physician burnout.

Physician Visits Continue To Exceed Pre-Pandemic Levels
Compared to 2022, physician office visits are expected to decline 2.1% in 2023 to an estimated 900 million visits before resuming growth through 2029. Staffing shortages, patient hesitancy post-pandemic, and patient visits to retail clinics and urgent care centers are contributing factors to the decrease in patient visits. Despite practice consolidation, over 65% of office visits are to practices with five or fewer physicians, 44% of visits are with solo practitioners.

Telehealth And Artificial Intelligence Are Leading The Future Of Care Delivery
Eighty percent of physicians report using telehealth in 2022 compared to 28% pre-pandemic. The adoption of other popular digital tools include remote patient monitoring (RPM) and wearable technologies that support clinical decisions, patient engagement, and workflow enhancement.

Forty percent of physicians report plans to incorporate artificial intelligence (AI) into their practices by 2028. The estimated global AI healthcare market is projected to grow from $15 billion in 2023 to $103 billion by 2028.

Retail Health Clinics Expand Offerings To Include Mental Health Services
The U.S. retail health clinic market is projected to double to $4.22 billion by 2029. Retail health clinics have expanded their networks by offering mental health services in addition to preventative and wellness care. Two-thirds of healthcare consumers have a favorable view of retail health clinics post-pandemic.