Industry Analysis & Industry Trends
In the past five years, the industry has grown as more physicians have integrated into larger provider networks to gain advantages such as increased negotiating power with insurance carriers and greater purchasing power. In the next five years, industry revenue is forecast to rise further, driven by healthcare reform provisions and aging demographics. However, ongoing shortages of medical personnel may restrain rapid industry growth.... purchase to read more
Industry Report - Industry Investment Chapter
The Medical Group Practice Management industry has a low level of capital intensity as healthcare is a labor-intensive sector and much of that labor is highly skilled and highly paid. IBISWorld estimates that for every dollar spent on wages, industry operators will spend $0.04 on capital. Over the past five years, capital intensity has declined slightly; in 2009, for every dollar spent on wages, industry operators spent about $0.05 in capital investment. In 2014, labor costs account for 47.9% of total revenue, whereas depreciation expenses represent about 1.7% of total revenue.
There is a high level of personal care in most healthcare industries, since patient-doctor interaction is necessary in order to improve health... purchase to read more