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Ambulatory Health Care Services Report Summary

SIC Codes: 8021 8041 8042 8043 8049 8011 5995 4119 8071 8099 8093 8092 8082
NAICS Codes: 621210 621310 621320 621330 621340 621391 621399 621410 621420 621491 621492 621112 621111 446130 621493 621999 621991 621910 621610 621512 621511 621498

Ambulatory Health Care Services Industry Overview

Excerpt from Ambulatory Health Care Services Report

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, AmSurg, DaVita HealthCare (all based in the US), as well as Fresenius (Germany), LVL Médical Groupe (France), and Sonic Healthcare (Australia).

Competitive Landscape

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 10% of revenue.

Products, Operations & Technology

Major services include care provided by physicians, which accounts for about 50% of industry revenue; dentists and outpatient care centers account for about 12% each. Other sources of revenue include medical and diagnostic laboratories, blood banks, home health care, rehabilitation therapy, and ambulance services. Health care in the US is led by for-profit entities, an exception to the global norm of nationalized medicine.