The Medical Group Practice Management industry is composed of healthcare provider groups, such as primary care physicians and specialist doctors that share business management, facilities, records and personnel.
According to Definitive Healthcare data, there are over 136,000 active physician group practices in the U.S., ranging in size from 1-physician solo practices to 8,700-physician practices.
Primary care is the center of the U.S. healthcare system, reforms in the healthcare coverage will reenergize the infrastructure and aid the rebuilding of the primary care payment and delivery model. The comprehensive care provided by Primary Care Physicians (PCPs) and the continuous patient and physician relationship are essential to improve the quality of care which will lead to positive patient outcomes in the long run.
The U.S. healthcare system majorly relies on primary care doctors to lower the overall Medicare spending. Government bodies have realized the importance of primary care physicians in developing a value-based healthcare system in the U.S. and have undertaken various initiatives to bridge these gaps between revenues of different specialties. These initiatives are anticipated to empower primary care physicians to spend more time with patients rather than performing other administrative work.
The Centers for Medicare & Medicaid Services (CMS) have developed several models such as Comprehensive Primary Care Plus (CPC+) and Primary Care First Model to strengthen primary care at the regional and national levels. These models offer innovative payment structure that enhances the delivery of primary care. This enables primary care physicians to focus on prioritizing the doctor-patient relationship, patients with chronic diseases, and improving healthcare outcomes.
In the U.S., primary care physicians mostly practiced in independent or small practices, however in recent years, many have been working in large physician groups or hospitals. Thus, competitive rivalry predominantly exists between various primary care provider models such as managed care, concierge care, Fee-for-Service (FFS), community care centers, employer care, hospitals, and other settings. Traditional patient-centered medical homes for primary care are being replaced by walk-in/retail and urgent care clinics that provide faster and more economic alternatives. Moreover, the shortage of physicians has also turned patients towards Nursing Practitioners (NP) and Physician Assistants (PA) for their primary care needs. However, new delivery models via telehealth and home-based physician visits are expected to fuel market growth.
