Got it covered: Rising healthcare expenditures will support industry revenue growth

The Medical Patient Financing industry, which extends credit to consumers to cover medical procedures, has started to adapt to subdued demand and a changing healthcare environment over the five years to 2017. Following revenue decline in 2012, as consumers delayed elective medical procedures, industry revenue started to trend upward as demand strengthened in 2013, somewhat offsetting the industry's poor performance in the first year of the current period. Pent-up consumer demand for health services, coupled with improved household debt, has helped industry revenue grow. Rising healthcare costs have boosted demand for industry financing in recent years. Over the next five years, the industry is expected to continue expanding...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Improving economic conditions and increasing healthcare expenditures will drive industry growth
  • Industry participants are introducing lower-interest-rate financing through installment loans
  • Consumer spending on elective and nonelective medical procedures is anticipated to increase
  • Industry Report - Industry Investment Chapter

    IBISWorld estimates that the Medical Patient Financing industry has a moderate level of capital intensity. On average, for every dollar the industry operator spends on labor, it spends $0.14 on capital. Wage costs account for 6.9% of industry revenue. Before issuing financing for medical expenditures, industry customers are subject to a number of background checks, such as credit, income and asset checks. This application process is generally a non-computerized processing procedure, with applications approved on a case-by-case basis. Industry employees process each application, which creates high wage costs. In addition, labor is required to ensure timely payment to medical professionals for services rendered and service delinquent cardholders. The...purchase to read more.

    Additional Insights for the Medical Patient Financing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Medical Patient Financing Industry are

  • Production of goods currently favored by the market
  • Access to the latest available and most efficient technology and techniques
  • Easy access for clients
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Total health expenditure in the Medical Patient Financing industry impact industry performance..

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    What's in this report

    What is the Medical Patient Financing Industry?

    This industry includes companies that are primarily engaged in extending credit facilities to consumers to cover healthcare costs and related expenses. Financing can be provided for elective and nonelective medical procedures.

    Industry Products
  • Dental care financing
  • Vision care financing
  • Cosmetic and dermatology care financing
  • Audiology care financing
  • Veterinary care financing
  • Industry Activities
  • Financing elective medical procedures
  • Financing nonelective medical procedures
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Total health expenditure
  • Number of physician visits
  • Number of people with private health insurance
  • Federal funding for Medicare and Medicaid

  • Current Performance
  • Consolidation leads to concentrated industry
  • Third-party financing fills coverage gap
  • Chart: Revenue Growth

  • Industry Outlook
  • Slowdown in dental expenditure hinders growth
  • Healthcare reform heightens competition
  • Table: Medical Patient Financing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Medical Patient Financing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Debt Collection Agencies
  • Primary Care Doctors
  • Dentists
  • Optometrists
  • Consumers

  • Key Selling Industries
  • Commercial Banking
  • Credit Card Issuing
  • Savings Banks & Thrifts

  • Products & Services
  • Dental care financing
  • Cosmetic and dermatology care financing
  • Veterinary care financing
  • Vision care financing
  • Other
  • Audiology care financing
  • Chart: Medical Patient Financing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • High-income households
  • Middle-income households
  • Households near or below the federal poverty line
  • Low-income households
  • Chart: Major Market Segmentation for the Medical Patient Financing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Other
  • Wages
  • Chart: Cost Structure Benchmarking – Sector vs Medical Patient Financing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical Patient Financing Industry

  • Industry Globalization
    Synchrony Financial, Citigroup Inc., Wells Fargo & Company,
  • Table: Synchrony Financial - financial performance
  • Table: Citigroup Inc. - financial performance
  • Table: Wells Fargo & Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Medical Patient Financing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Medical Patient Financing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Healthcare Expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Copayments are paid by patients every time a medical service is performed.
  • Deductible
  • The amount of medical expenses patients must pay out of pocket before the insurer will pay any expenses.
  • Deliquencies
  • When a patient fails to make a scheduled debt payment.
  • Lasik
  • Laser eye surgery that is commonly performed to correct myopia, hyperopia, and astigmatism.
  • Loan Charge-Off
  • Loan charge-offs are considered noncollectible debt by medical patient financing companies resulting in a loss and reduced profitability.
  • Loan Loss Provision
  • An expense set aside for bad loans.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Medical Patient Financing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Medical Patient Financing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Medical Patient Financing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Medical Patient Financing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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