Physicians Industry Overview

Excerpt from Physicians Report

Companies in this industry engage in general or specialized medical care. No major companies dominate the industry.

Competitive Landscape

Demand for physician services is driven by population growth and demographics. The profitability of individual practices depends on the reputation 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. Physicians generally have several direct competitors in the immediate geographic area. The industry is highly fragmented: the top 50 firms account for about 10 percent of industry revenue. About 75 percent of all physician offices are small, with fewer than 10 employees (including the doctors); only about 1,300 offices have more than 100 employees.

Products, Operations & Technology

Operations of physician offices revolve around patient care, appointment scheduling, records management, and insurance processing. Typically, a patient makes an appointment several days or weeks before being seen, a medical record file is retrieved, the patient sees the doctor for less than 20 minutes, the doctor orders tests or prescribes treatment, the doctor's consultation and any test results or treatments are entered into the medical records, and the cost of the visit is billed to an insurance plan.