U.S. Primary Care Physicians Market Size, Share & Trends Analysis Report By Type (General Practice, Family Physician & Geriatrics, General Internal Medicine), By Region, And Segment - Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. Primary Care Physicians market size was estimated at USD 267.86 billion in 2022 and is expected to surpass around USD 370.25 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 3.29% during the forecast period 2023 to 2032.

Key Takeaways:

• Government bodies have realized the importance of PCPs in developing a value-based healthcare system in the U.S. and have undertaken various initiatives to bridge these gaps between revenues of different specialties
• As PCPs are focusing on horizontal or vertical consolidation, buyers, such as private equity firms, insurance companies, and hospitals & medical institutes, are getting lucrative opportunities for investment in the market
• Family physicians are the leading specialty providers in primary care. As per the 2022 Physician Specialty Data Report by the Association of American Medical Colleges, family medicine/general practice accounted for 118,641 active PCPs in 2021
• The Centers for Medicare & Medicaid Services (CMS) has developed several models, such as Comprehensive Primary Care Plus (CPC+) and Primary Care First Model, to strengthen primary care at the regional and national levels. These models offer innovative payment structures that enhance the delivery of primary care
• The U.S. PCPs market is highly fragmented, with the presence of small private practices, physicians employed by healthcare networks, and multispecialty groups. There is an upward trend of consolidation in the market due to an increasing shortage of physicians, low remunerations, and growing demand for these services

U.S. Primary Care Physicians Market Report Scope

The growth can be attributed to the growing access to primary care providers, which is expected to reduce healthcare expenditure and the growing hospitalization rate. Primary care physicians (PCPs) practicing family medicine, internal medicine, and pediatrics provide early detection of diseases with immediate treatment, management of chronic conditions, and preventive care.

New primary care models, such as direct primary care and concierge services, are expected to increase physician practice revenue. These practice models provide annual membership to patients for primary care and preventive care, which in turn may reduce overall healthcare costs. Moreover, these practices have also collaborated with Medicare and private insurance providers to make primary care accessible and affordable.

In the U.S., employed physicians have reported that salary-based compensation most commonly follows volume-based and mixed models. As per the study of 31 physician organizations in the U.S. published in JAMA Network in January 2022, for PCPs, the volume-based compensation model was the common base compensation incentive component, with around 26 physician organizations accounting for around 68.2% of the total compensation.

Programs developed by policymakers to deliver quality care by enhancing payment methods for financial incentives are expected to help physicians focus on value-based care rather than volume-based care. Moreover, patient outcomes as a measure of the quality of care are being incorporated into value-based payment models, such as incentive-based payment models, risk-bearing arrangements, and comprehensive primary care programs.

In the U.S., PCPs mostly practice in independent or small healthcare settings; however, in recent years, many physicians are now working with large physician groups or hospitals. As per the Primary Care in the United States: 2019 by Robert Graham Center (RGC), around 48% of PCPs are partial or full owners of the practice, and around 48% of these providers work for employed physicians. Out of all the primary care providers working in non-physician-owned practices, around 50% are in the insurers, HMOs, health plans, or corporate-owned practices, and around 47% are in the community health, academic, or medical centers.

The COVID-19 pandemic negatively impacted the market. The physicians offering pediatric services reported shutdowns owing to the limited number of patients. Most physicians relied on telehealth and virtual care services to run their practices. Moreover, even after re-opening post lockdowns and reduction of movement restrictions, patients preferred virtual consultations to avoid the disease. As telehealth became a more preferred mode of consultation for patients, primary care practices witnessed reduced patient influx during the second half of 2020.

Type Insights

In 2022, the general practice, family physician, and geriatrics physicians segment dominated the market with the largest revenue share due to rising dependence on general practitioners and family physicians from Medicare beneficiaries. Family physicians are the leading specialty care providers in primary care. As per the 2022 Physician Specialty Data Report by the Association of American Medical Colleges, family medicine/general practice accounted for 118,641 active physicians in 2021 and around 60,305 active physicians.

The general pediatric physician segment is expected to witness the fastest CAGR during the forecast period. This can be attributed to the increasing prevalence of chronic diseases in children and rising awareness among parents. However, a shortage of pediatric physicians was reported by the American Academy of Pediatrics (AAP). As per the 2022 Physician Specialty Data Report by the Association of American Medical Colleges, there were around 60,305 active pediatric physicians in 2021 in the U.S. The AAP also reported inadequate distribution of pediatricians in rural areas. Thus, the demand for PCPs for children is expected to increase across the country.

The general internal medicine segment is expected to witness significant growth during the forecast period. The practitioners play an important role in controlling the expanding healthcare cost and implementing reforms in the primary healthcare system. As per the 2022 Physician Specialty Data Report by the Association of American Medical Colleges, internal medicine accounted for the largest number of active physicians with 120,342 active physicians in 2021.

Region Insights

The Southeast region held the largest revenue share in 2022. This can be attributed to the growing demand for PCPs in the region and increasing government expenditure for PCPs. According to the CMS National Health Expenditure data, in 2020, the healthcare expenditure for physician and clinical services was USD 61.689 billion in Florida, USD 27.21 billion in Georgia, and around USD 23.22 in North Carolina, which accounted for the states with the largest expenditure.

Moreover, the demand for PCPs in the Southeast region is growing continuously owing to the growing shortage of these physicians due to the pandemic. According to the Kaiser Family Foundation, as of September 2022, around 1,722 PCPs were required to remove Health Professional Shortage Area (HPSA) designation in Florida, which is the highest in the U.S.

The West region is expected to witness lucrative growth during the forecast period owing to the presence of the highest number of active PCPs in the region. According to America's Health Rankings by the United Health Foundation, as of September 2022, there were around 342 active PCPs per 100,000 population in Alaska.

Key Companies & Market Share Insights

Duly Health and Care; ChenMed LLC; 1Life Healthcare, Inc. (One Medical Group); and MDVIP dominated the market in terms of strategic initiatives. These companies have expanded their services with the launch of new facilities, by acquiring new companies and partnerships & affiliations with physicians across the country to strengthen their presence at a national level. For instance, in July 2022, 1Life Healthcare, Inc. (One Medical Group) entered into a definitive agreement with Amazon for a merger, under which Amazon will acquire One Medical. 

More physicians are affiliating their practices with large physician groups & healthcare networks to survive in the market and increase their reach to new patients. For instance, in July 2022, MDVIP expanded its National Primary Care Network with the addition of Richard M. Del Sesto, a board-certified internist in Rhode Island. Some prominent players in the U.S. primary care physicians market include:

• MDVIP
• 1Life Healthcare, Inc. (One Medical Group)
• Rhode Island Primary Care Physicians Corporation (RIPCPC)
• Duly Health and Care (Formerly DuPage Medical Group)
• Optum, Inc.
• ChenMed LLC
• Premier Medical Associates
• Colonial Healthcare
• New West Physicians
• Crossover Health Medical Group

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Primary Care Physicians market.

By Type 

• General Practice, Family Physician and Geriatrics
• General Internal Medicine
• General Pediatrics
• By Regional 
• West
• Northeast
• Southeast
• Midwest
• Southwest