Market Observations
Overview – Physician Practices
- The U.S. physician services industry generated an estimated $347.5 billion in revenue in 2024 and is projected to grow at a 5.9% CAGR, reaching $438.1 billion by 2028. This sustained growth is driven primarily by the rapidly aging U.S. population and the increasing prevalence of chronic conditions across all age groups.
- The percentage of the U.S. population over the age of 65 is roughly 18% and is on pace to reach 20.6% by 2030, and 21.6% by 2040.
- 51.8% of all Americans have at least one chronic disease, 42% have at least two, and 12% have at least five.
- Practice consolidation via private equity roll-up strategies have gained significant momentum in the last decade, however, the market remains highly fragmented. Only 6% of physician groups in the U.S. are PE-backed and 12% remain entirely independent.
Industry Snapshot
$347.5B
U.S. physician services market revenue in 2024
18%
U.S. population over 65 years old
6%
Physician groups are PE-owned
