Physician Office Market Report 2024

Physician Office Market Report 2024

Market At-A-Glance
The physician and clinical services market is projected to reach $978 billion in 2024 and surpass $1 trillion by 2025. In 2024, spending on physician services accounts for 20% of all U.S. healthcare spending. Private health insurance remains the largest payer for physician services, comprising 39% of the physician office payer mix.

The physician market remains dominated by specialty care, with an estimated 314,000 specialty physician offices and 161,000 primary care offices in the U.S. as of 2024. The number of both primary care and specialty offices is projected to increase 10% by 2029.

Chronic Health Conditions Are The Top Reason For Physician Office Visits
In 2023, there were an estimated 1.1 million physician office visits in the U.S and 41% of office-based physician visits were due to chronic health conditions. The primary services provided at physician offices include exams and screenings, laboratory tests, and health education.

Physician Practices Experience Service Disruptions Due To Cyberattacks
Eighty percent of independent physician practices in 2024 have lost revenue from unpaid medical claims due to cyberattacks. A total of 739 healthcare data breaches occurred in 2023 that have threatened patient privacy and disrupted healthcare operations. In response to cyberattacks, physician practices are implementing manual workarounds, using personal funds to mitigate effects, and entering new contracts with alternative clearinghouses.

Rates Of Physician Burnout Fall As Employment Of Nurse Practitioners Rises
Forty-nine percent of surveyed physicians report feeling burned out in 2024, a decrease from 53% in 2023. To alleviate workplace burnout, almost one-third of physicians have reduced their work hours, while 25% changed job settings. The specialties reporting the highest levels of burnout include emergency medicine, obstetrics and gynecology, and oncology. Helping to meet the growing aging U.S. population’s healthcare needs and alleviating the burden of physician shortages, the nurse practitioner profession is the fastest growing profession in the U.S. with a projected employment increase of 45% by 2032.

Artificial Intelligence Is Expected To Provide Incremental Value To Physicians
Thirty-one percent of physicians report artificial intelligence (AI) as a top digital and technology investment priority in 2024. Forty-three percent of surveyed healthcare providers view the potential future benefits of AI as delivering incremental value while 19% view potential future AI benefits as transformational. The top reported barriers to implementing generative AI in healthcare reflect resource constraints, lack of technical expertise, and regulatory and legal concerns. By 2028, the highest priority generative AI case uses are expected to include predictive analytics and risk stratification.

Urgent Care Patient Volumes Return To Pre-Pandemic Levels
Urgent care centers provide care to over 200 million patients per year. In 2023, average visits per clinic per day have returned to pre-pandemic levels at 35 visits per day. Driven largely by site of care shifts pushing patients to urgent care and retail clinics, the urgent care industry is projected to reach $73.9 billion in 2028, a 34% increase from $55.1 billion in 2024.