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        Physicians Industry Profile

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        Excerpt from Physicians Industry Profile

        Offices in this industry provide general or specialized medical care. No major companies dominate.

        Globally, there are about 10 million physicians (not including midwives, dentists, or other health personnel), according to the World Health Organization. China has the largest number of physicians at around 4 million; followed by India, with over 1 million; and the US, with around 800,000. Countries with the most physicians per capita include Sweden and Austria, with more than five doctors per 1,000 population; Greece and Norway, with nearly five; and Denmark and Lithuania, with about four.

        The US physicians industry includes about 223,000 offices with combined annual revenue of about $475 billion.

        COMPETITIVE LANDSCAPE

        Physicians are under pressure from government payers and insurers to lower costs while improving quality of care. The profitability of individual practices depends on the reputation, cost, operational efficiencies, and expertise of the physician and staff. Large practices have advantages in leveraging administrative processes and expensive diagnostic equipment. Small practices compete effectively by providing specialized skills and good customer service. Population growth, injury and illness rates, and demographics play a role in demand for services. Physicians practicing in urban areas generally have several direct competitors in the immediate geographic area, while access to care may be restricted in rural communities.

        The US industry is highly fragmented: the top 50 firms account for about 15% of industry revenue. About 75% of all physician offices are small, ...

         
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