U.S. Office-based Labs Market Size, Share & Trends Report

U.S. Office-based Labs Market Size, Share & Trends Analysis Report By Modality (Single Specialty Labs, Hybrid Labs), By Service, By Specialist, And Segment Forecasts, 2020 - 2027

  • Published Date: Dec, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-2-68038-900-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The U.S. office-based labs market size was valued at USD 8.5 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 7.06% from 2020 to 2027. The growing trend of surgical procedures being performed in outpatient settings and the rising incidence of various vascular diseases are among the major factors driving the demand for office-based labs (OBL) in the U.S. Additionally, high patient satisfaction with a focused and dedicated team of doctors is expected to boost the market growth. Many service providers such as National Cardiovascular Partners, Envision Healthcare, and Surgery Partners are available in the country and they have been providing office-based surgical solutions and services to patients at an affordable cost.

U.S. office-based labs (OBLs) market size, by modality, 2016 - 2027 (USD Billion)

Furthermore, key manufacturers such as Philips Healthcare and Siemens Healthineers have been entering into partnerships with physicians to set up OBLs, equipping laboratories with required devices and providing complete solutions from start to end, which is expected to propel the market growth.

When compared with hospital outpatient (HO) settings, establishing an OBL is beneficial for physicians in terms of reimbursements. There is a reduction in the cost of vascular procedures when performed in office-based laboratories due to a high reimbursement available for physicians. According to Elsevier, Inc., the percentage of procedures performed for Medicare beneficiaries increased to 76% from 2011 to 2015. Overall, the adoption of procedures has increased by 30% in HO settings, by 380% in OBLs, and has decreased by 16% in hospital inpatient (HI) settings.

The U.S. market faces challenges such as limited availability of anesthetic techniques and resources, which can put patient safety at risk, and lack of technical training for minimally invasive surgical procedures. The lack of definitive training and educational programs pertaining to the use of MIS devices makes surgeons reluctant to use this technology in OBL settings.

COVID-19 has impacted surgical procedures at hospitals and physicians’ labs. Due to the high rate of infection in the country, many surgeons have called off the service to restrict further spread. In addition, as the mode of transmission is through aerosols, anesthetists are at high risk of contracting the disease when they intubate a patient for surgery. Even though operating rooms are sterilized environments, it does not guarantee protection against infection.

Following WHO’s statements on precautions during the ongoing pandemic, the United States Surgeon General announced formal instructions to cancel elective surgeries as they may accelerate the spread of the novel coronavirus within healthcare facilities as well as consume vital medical resources required for managing COVID-19 cases. Most of the elective procedures are not an emergency. Based on a statement made by the American College of Surgeons (ACS), the Surgeon General has provided instructions to prioritize appropriate resource allocation during the novel coronavirus pandemic as it relates to elective invasive procedures. All healthcare workers are needed to take care of patients infected by the virus and the critically ill who are already hospitalized. Operating rooms have ventilators that are needed to support critically ill COVID-19 patients, which will be their priority over elective surgeries.

Modality Insights

Based on the modality, the market has been divided into single-specialty laboratories, multi-specialty laboratories, and hybrid laboratories. Single specialty office-based labs spearheaded the market in 2019 with a share of 42.6%. Hybrid office-based labs are anticipated to witness high growth during the forecast period.

Single-specialty OBLs offer more patient-centric treatments with minimum risk of partner divestment in the business. Hybrid models, on the other hand, offer more profitability with multiple facilities under one roof. However, the high cost associated with setting up such kind of labs may restrict their establishment. Multi-specialty labs are also gaining popularity as a partnership business of three to five physicians.

Specialist Insights

The U.S. market has been categorized based on specialist into vascular surgeons, interventional cardiologists, interventional radiologists, and others. Vascular surgeons are the leading service providers in OBL settings and held the dominant share of 40.7% in 2019. This can be primarily attributed to the rising burden of vascular diseases in the country. All major vascular surgeries, such as aortic, mesenteric, renal, subclavian, iliofemoral, tibial, and pedal, are being performed by vascular surgeons in office settings.

With the increasing acceptance of minimally invasive procedures in office settings, the interventional radiologist segment is expected to witness lucrative growth during the forecast period. When compared with vascular surgeons, interventional radiologists are involved in more complex procedures, such as coil embolization.

Service Insights

Based on service, the market is segmented into peripheral vascular intervention, endovascular intervention, cardiac, interventional radiology, venous, and other services. Peripheral vascular intervention (PVI) dominated the market in 2019 with a share of 40.6% owing to the high prevalence of atherosclerosis in the country and a large number of balloon angioplasty and stenting procedures being performed in patients with blocked arteries and veins. Vascular procedures are the most performed kind in OBL settings.

U.S. office-based labs (OBLs) market share, by service, 2019 (%)

The endovascular intervention segment is expected to witness high growth during the forecast period owing to the rising incidence of aortic and coronary aneurysms in the country, increasing acceptance and approval of various endovascular procedures in outpatient settings as well as OBLs, and growing preference among patients for daycare treatment options.

Country Insights

The concept of OBLs has been most widely accepted and practiced in the U.S. Currently, almost 70% of surgical procedures are being performed in outpatient settings. The concept of OBL was introduced primarily to focus on vascular surgical procedures in office settings, providing more efficient care to patients at a lower cost.

The trend of office-based labs is growing in the country owing to less licensing and paperwork required when compared to ambulatory surgery centers (ASC). According to the Journal of the American College of Cardiology, in March 2015, the number of peripheral vascular procedures performed in inpatient settings in the U.S. has decreased, thereby leading to an increase in the number of procedures performed in outpatient settings. This indicates the rising preference for daycare and office-based treatment options among patients.

Key Companies & Market Share Insights

The vendor landscape of this market can be divided into three different sectors: medical imaging device manufacturers, vascular intervention device manufacturers, and service providers who offer end-to-end services to physicians for setting up labs. Among medical imaging device manufacturers, Philips Healthcare, Siemens Healthineers, and GE Healthcare are the key providers of equipment required in setting up OBLs. Key vascular intervention device manufacturers include Abbott; Medtronic; Boston Scientific; and Cardiovascular System, Inc.

Mergers and acquisitions, technological advancements, and new product launches are some of the strategies followed by major players in the market. For instance, in December 2019, GE Healthcare launched more than 30 new smart devices and imaging intelligent applications at the Radiological Society of North America (RSNA) for radiology departments. In August 2019, Boston Scientific acquired BTG PLC to expand its portfolio of minimally invasive surgical devices.

In March 2019, Koninklijke Philips acquired the healthcare information systems (HCIS) business of Carestream Health to provide imaging IT solutions to radiology services providers, multi-site hospitals, OBLs, specialty clinics, and imaging centers across the globe. Some of the prominent service providers in the U.S. office-based labs market include:

  • Envision Healthcare

  • Surgery Care Associates, Inc. (SCA)

  • Surgery Partners

  • National Cardiovascular Partners

  • CardioVascular Coalition

  • Tenet Healthcare Corporation

U.S. Office-based Labs Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 9.0 billion

Revenue forecast in 2027

USD 14.5 billion

Growth Rate

CAGR of 7.06% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Modality, service, specialist

Country scope

The U.S.

Key companies profiled

GE Healthcare; Philips Healthcare; Siemens Healthineers; Medtronic PLC; Boston Scientific; Abbott; Cardiovascular System, Inc. (Suppliers)

Envision Healthcare; Surgery Care Associates, Inc. (SCA); Surgery Partners; National Cardiovascular Partners; CardioVascular Coalition; Tenet Healthcare Corporation (Service Providers)

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. office-based labs (OBLs) market report on the basis of modality, service, and specialist:

  • Modality Outlook (Revenue, USD Million, 2016 - 2027)

    • Single Specialty Labs

    • Multi-specialty Labs

    • Hybrid Labs

  • Service Outlook (Revenue, USD Million, 2016 - 2027)

    • Peripheral Vascular Intervention

    • Endovascular Intervention

    • Cardiac

    • Interventional Radiology

    • Venous

    • Others

  • Specialist Outlook (Revenue, USD Million, 2016 - 2027)

    • Vascular Surgeons

    • Interventional Cardiologists

    • Interventional Radiologists

    • Others

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