By 2026, spending on physician and clinical services is expected to exceed $1 trillion annually. Key drivers of this growth are rising rates of obesity and the associated uptick in related health issues. Obese Americans spend an average of $4,870 per year on healthcare, $1,270 more than an American of average weight. By 2030, half of Americans are expected to be obese, and this condition is expected to cause 6 million cases of diabetes, 5 million cases of heart disease or stroke, and 400,000 cases of cancer.
As Americans face these health issues and the population ages, physicians expect to spend more on medical supplies. According to HIDA research, practices are three times more likely to have a supply budget increase in the next year than a budget decrease, with 14% of practices saying their supply budget will rise by over 6%.
Financial issues are among physicians’ top challenges. These include: declining reimbursement and controlling operating costs. At the same time, many (43%) of these providers see technology as a way to enhance their practice’s efficiency. Suppliers can play a key role in helping physician practices streamline their practices, and can be key partners in delivering quality and affordable care.
To learn more, check out HIDA’s 2018 Physician Office Market Report.