U.S. Office-based Labs Market Size, Share & Trends Analysis Report By Modality (Hybrid, Multi-specialty), By Service (Cardiac, Endovascular Intervention), By Specialist, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. office-based labs market size was valued at USD 10.3 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.52% from 2023 to 2030. 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. In addition, high patient satisfaction with a focused and dedicated team of doctors is expected to boost the market growth. The prevalence of vascular diseases in the U.S. is increasing. As per an AHA article published in June 2021, the prevalence of Peripheral Arterial Disease (PAD) was 7%, affecting approximately 8.5 million adults in the U.S.

The prevalence of these diseases has significantly increased over the past decade and is expected to continue growing at an exponential rate. The U.S. witnessed a growth of 13% in the number of individuals suffering from PADs in the past decade. PADs increase the risk of stroke and heart attack and often lead to ischemic amputations. Thus, increasing the demand for vascular surgical procedures. 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.

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. The changing reimbursement policies for surgical procedures are boosting the scope of surgical procedures in office-based settings. In 2021, the Centers for Medicare and Medicaid Services proposed new standards for reimbursed procedures conducted in ASCs and broadened the scope of surgical procedures payable when performed in outpatient settings.

COVID-19 U.S. Office-based Labs Market Impact: 6.9% growth from 2020 to 2021

This policy change also positively affected peripheral vascular interventions. After changes were made in federal reimbursement policy, peripheral vascular interventions have been categorized under outpatient settings. This is comparatively less expensive than in inpatient settings. As compared to Hospital Outpatient (HO) settings, establishing an OBL is beneficial for physicians in terms of reimbursements. The operating cost of an ambulatory center is higher than that of an OBL due to high patient safety standards and stringent regulatory scenarios. In some states of the U.S., conversion of an ambulatory center requires a certificate of need, which is a time-consuming procedure. This is creating an opportunity for physicians to convert to OBL settings.

Modality Insights 

Based on modality, the market is categorized into single specialty, multi-specialty, and hybrid labs. The hybrid labs segment is expected to register the fastest CAGR of more than 8.80% during the forecast period owing to technological advancements, an increase in reimbursement rates, and a rise in the number of minimally invasive procedures. In addition, improvements in technology, providing high-quality and convenient solutions for patients, are projected to support the growth of this segment. The hybrid lab operates as an OBL for a few days of the week and as an ASC on other days.

Thus, hybrid labs increase the volume of procedures & reimbursement for providers and significantly enhance the efficiency and utilization of OBL/ASC. The single specialty modality segment dominated the market in 2022 and accounted for a revenue share of 41.98%. Single specialty centers are growing at a significant rate due to their investment-friendly model and importance in specified specialties, such as ophthalmology, urology, plastics, and gastroenterology. Single specialty clinics are more cost-efficient in comparison with multi-specialty hospitals that require many resources to support multiple service lines, leading to an increase in operational costs.

Specialist Insights

Based on specialists, the market has been further classified into vascular surgeons, interventional cardiologists, interventional radiologists, and others. The interventional radiologist segment is expected to grow at the fastest growth rate of 8.65% during the forecast period on account of the increasing use of minimally invasive image-guided techniques for the diagnosis and treatment of diseases. Advancements in medical technology, increasing preference for better & efficient care, and patient demographics are factors expected to fuel the demand for vascular specialists.

Currently, there is a shortage of physicians for vascular surgery. According to the Society for Vascular Surgery, 100 million people in the U.S. are at risk of vascular disease. The office-based labs are the top preference of vascular surgeons, as performing surgeries at office-based facilities has financial benefits for them, with all the excess margin for surgical procedures going to the surgeon directly & indirectly. Moreover, interventional radiology reduces cost, recovery time, pain, and risk to patients. According to the latest statistics by the American Medical Association, there were 48,767 radiologists in the U.S. in 2021.

Furthermore, the American College of Radiologists Commission on Human Resources Workforce Survey in 2019 highlighted the growing shortage of physicians and the surge of 30% job openings in radiology from 2017 to 2018. Therefore, the lack of physicians in the field of radiology creates demand for specialists, thereby boosting the segment growth. The vascular surgeon segment dominated the market in 2022 and accounted for a revenue share of 40.44% owing to the advancements in medical technology, an increase in the demand for specialists, and a shift in preference from hospital settings to OBLs for better & more efficient care.

Service Insights

Based on services, the OBLs market has been categorized into peripheral vascular intervention, endovascular intervention, cardiac, interventional radiology, venous, and others. The interventional radiology segment is estimated to register the fastest CAGR of more than 10.18% from 2023 to 2030. Interventional radiology is beginning to play a vital role in the adoption of value-based healthcare models. Interventional radiology helps diagnose and treat patients using the least invasive techniques that are less expensive, cause minimum pain, and need less recovery time in comparison with traditional surgery.

It utilizes image-guided procedures, such as MRI, CT, and ultrasound, to guide minimally invasive procedures to diagnose and treat diseases in every organ system. According to Cardiovascular Disease Management Annual Symposium, around 12% of interventional radiologists performed office-based interventions in the U.S. The peripheral vascular intervention segment dominated the market in 2022 and accounted for a revenue share of 40.38% on account of the increased prevalence of PAD, favorable reimbursement, and technological advancements in minimally invasive vascular procedures.

Industry players are trying to strengthen their peripheral intervention product offerings to commercialize the growing opportunities in OBL settings. In March 2021, Cardiovascular Systems, Inc. acquired WavePoint Medical’s line of peripheral support catheters, which are used in peripheral vascular intervention. Under this acquisition agreement, WavePoint Medical would develop a specialty catheter portfolio used in complex percutaneous coronary intervention and chronic total occlusions for Cardiovascular Systems, Inc.

Country Insights

According to the U.S. Census Bureau, in 2021, around 54 million people in the U.S. were aged 65 years & above, and this number is expected to reach 85.7 million, accounting for 20% of the total population, by 2050. Thus, it is anticipated that the incidence of vascular diseases will increase in the geriatric population, which, in turn, will boost the demand for available treatment facilities. A high preference for treatment in outpatient settings on account of the increasing burden of vascular and endovascular diseases in the U.S. population indirectly generates the demand for settings, such as OBL. Thus, the OBL market is expected to grow significantly over time.

On the other hand, risks associated with the treatment and stringent regulations for approval of new products are some of the factors restraining the market growth. The states in the U.S. with the most active specialist physicians include Florida, California, New York, and Texas. California has the highest number of active specialist physicians in the U.S., with 115,347 physicians. The specialty includes cardiology, radiology, anesthesiology, and others. According to the 2021 state health facts, there are 27,076 cardiologists in the U.S., with California having 2,744 cardiologists-being the highest in the U.S.

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.

The service providers are focused on enhancing their range of services and undertake initiatives, such as partnerships & mergers, and acquisitions, to achieve this. For instance, in May 2021, Surgery Partners entered into a strategic partnership with UCI Health to develop & expand access to outpatient surgical facilities and enhance the quality of life of patients. Some of the prominent service providers in the U.S. office-based labs market include:

• Manufacturers

  • Koninklijke Philips N.V

  • GE Healthcare

  • Siemens Healthineers AG

  • Medtronic PLC

  • Boston Scientific Corp.

  • Abbott

  • Cardiovascular Systems, Inc.

• Service Providers

  • Envision Healthcare

  • Surgery Care Associates, Inc. (SCA)

  • Surgery Partners

  • National Cardiovascular Partners

  • Cardiovascular Coalition

  • TH Medical

Recent Developments

• In July 2023, Siemens Healthineers announced the launch of a compact testing system –Atellica CI Analyzer, for addressing operational challenges in labs. The analyzer delivers workflow advancements to alleviate reporting burdens, attain more predictable turnaround times, and refocus staff attention on critical lab operations.

• In June 2023, Philips announced that it had entered into a strategic collaboration with Polarean to reinforce hyperpolarized Xenon MRI for respiratory illness in patients. This technology can be leveraged in office-based labs where clinicians require advanced imaging capabilities for respiratory assessment and disease management.

• In May 2023, Siemens Healthineers, along with CommonSpirit Health announced plans to acquire Block Imaging. This was aimed at providing more sustainable options and meeting the proliferating demand from U.S. hospitals, health systems, and other care sites, including office-based labs for multi-vendor imaging parts and services.

• In April 2023, Abbott announced the completion of the acquisition of Cardiovascular Systems, Inc. This acquisition was aimed at providing Abbott with a complementary solution for treating vascular diseases and enhancing the company’s vascular portfolio, thereby enabling them to more efficiently care for patients with peripheral and coronary artery diseases.

• In April 2023, Philips introduced the all-new Ultrasound Compact System 5000 series, a portable ultrasound solution with cutting-edge features, including AI-powered automation tools, purposed to bring quality ultrasound to patients. Office-based labs can also benefit from such advanced diagnostic technologies, as they focus on delivering medical care services in an outpatient setting.

• In November 2022, Boston Scientific Corporation announced plans to acquire Apollo Endosurgery, Inc. This acquisition was aimed at empowering Boston Scientific to expand its global capabilities in endoluminal surgery and progressively tap into the endobariatric market.

• In October 2022, GE Healthcare entered into a collaboration with Tribun Health to offer digital pathology solutions that enable healthcare providers to access a more all-inclusive view of patient records. This collaboration aimed to streamline and enhance pathology & diagnostic processes, which are critical components of healthcare services provided in diverse medical settings, including office-based labs.

• In April 2022, Medtronic announced a strategic collaboration with GE Healthcare to meet the escalating need for outpatient care in office-based labs (OBLs) and Ambulatory Surgery Centers (ASCs) applications. The objective of this deal was to deliver a full range of technologies and solutions, including products, equipment, and services, to back the growth of ASCs and OBLs and improve patient care in these settings.

 U.S. Office-based Labs Market Report Scope 

U.S. Office-based Labs Market Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. office-based labs market report based on modality, service, and specialist:

• Modality Outlook (Revenue, USD Million, 2017 - 2030)

  • Single-specialty Labs

  • Multi-specialty Labs

  • Hybrid Labs

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Peripheral Vascular Intervention

  • Endovascular Interventions

  • Cardiac

  • Interventional Radiology

  • Venous

  • Others

• Specialist Outlook (Revenue, USD Million, 2017 - 2030)

  • Vascular Surgeons

  • Interventional Cardiologist

  • Interventional Radiologists

  • Others