U.S. Concierge Medicine Market Size, Share & Trends Analysis Report By Application (Primary Care, Internal Medicine, Cardiology, Psychiatry), By Ownership (Standalone, Group), And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. concierge medicine market size was valued at USD 5.5 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 10.27% from 2022 to 2030. Concierge medical practice refers to a private form of practice where the patients are charged an out-of-pocket retainer fee for accessing the doctor’s services. This includes services, such as office visits, round-the-clock access to physicians, lab tests, house calls, care while traveling, referrals to specialists, preventive care, regular health assessment, and others. In these practices, the doctors generally bypass the insurance companies to provide personalized healthcare services and charge a flat fee (membership and consulting) on a monthly or annual basis. These practices are turning out to be a relief to several doctors as against traditional care policies, majorly governed by the insurance providers and the government regulations.

The patient membership care model is gradually becoming popular in the U.S. Easy access to healthcare services is appealing to the patients and hence they are readily adopting retainer medicine. According to the 2017 Survey of Physician Appointment Wait Times conducted by Merritt Hawkins, it required an average of 24 days for a new patient to schedule an appointment with a physician in the 15 largest U.S. cities, a 30% increase since 2014. This is not the case in concierge care. As the physicians in retainer medicine limit the number of patients, they spend more time in each encounter to know the patient completely. As per Concierge Medicine Today (CMT), LLC, concierge physicians spend an average of 45-90 minutes with each patient. This helps in developing a strong patient-physician relationship where the patients completely trust their care provider.

Thus, membership-based medicine is a doorstep to individualized care. Concierge care is not only beneficial for the patients but the providers as well. Owing to this, many physicians are switching to the retainer model. According to the Physicians Foundation 2016 Survey of Americas Physicians, in 2016, 8.8% of the physicians were planning to switch to cash or concierge practice. As per the CMT, LLC, in 2017-2018, 39% of the concierge physicians had an annual salary in the range of USD 250,000 - 499,000 and 18% between USD 200,000 - 250,000. This coupled with high career satisfaction, less workload, and reduced work stress are key factors owing to which many doctors are considering retainer medicine. Due to burnout and heavy workload, many physicians are planning to take early retirement.

These practices are helping in reducing physician burnout, thereby preventing early retirement. During the COVID-19 pandemic, population demand for healthcare services increased drastically. People were required to wait for long hours in queue for COVID-19 testing or other consultations. As doctor appointments and elective procedures were getting canceled, patients were looking for easy access to trusted care. This boosted the demand for retainer medicine. According to Kona Medical Consulting, a firm providing services for the expansion of medical facilities, concierge doctors reported an increase of 21% in new patient volumes in the U.S. in 2020. On the other hand, a significant portion of physician offices and clinics were incurring losses owing to government restrictions.

COVID-19 U.S. concierge medicine market impact: 10.3% increase from 2019 to 2020

According to the 2020 Physician Foundation Survey, around 72 % of doctors in the U.S. have experienced a reduction in income due to the pandemic. Moreover, 55% of these have experienced income losses of nearly 26% or more. Concierge care provided financial stability to physicians during economic crises. According to a practitioners survey conducted by OvationLab in the U.S., those under membership-based practices had a 0% closure rate and around 24% of the physicians within the cohort reported higher revenues in 2020 than the previous year. Thus, an increased number of doctors switching to retainer medicine favored the market growth.

Application Insights

The primary care segment accounted for the largest revenue share of 26.4% in 2021. Primary care is an integral part of the U.S. healthcare system. From acute to chronic illness, all the hospital visits are first made to Primary Care Physicians (PCPs). With rising patient awareness, the expectations of patients for quality healthcare services and convenient care are increasing. PCPs in traditional healthcare settings are unable to match those expectations due to the high patient load. Hence, many patients are shifting to membership-based care for personalized primary care. Internal medicine is among the top 5 specialties in concierge care. According to CMT, LLC, 25% of the specialists operating in the concierge model during 2016-2017 were in internal medicine.

Owing to the advantages of concierge medicine, many internal medicine specialists are establishing a hybrid model. An increasing number of visits for digestive diseases and the rising prevalence of diabetes & hypertension are expected to drive the growth of the segment. The rising prevalence of cardiovascular diseases and high waiting time for cardiology appointments are propelling the growth of the segment. According to the American Heart Association, between 2015 and 2018, 126.9 million people in the U.S. had some form of cardiovascular disease. By 2035, more than 130 million U.S. adults are projected to have some form of cardiovascular disease. In December 2020, Lown Cardiology Group established a concierge medicine practice by working with Specialdocs Consultants, LLC. This is likely to drive the growth of the segment.

Ownership Insights

The group segment dominated the market with a share of 63.7% in 2021. The group segment includes companies with affiliated physicians as well as a group of doctors with their own membership care model. As transitioning to a membership model requires legal compliance, high advertisements, and patient communication, many physicians merge their practice with concierge care companies. In such practices, patients are provided with premium and luxurious services, which include travel care, care to guests, care coordination, VIP medicine with private rooms, wellness & life coaching programs, advanced physical examination, and others. High demand for concierge care among patients during the pandemic and high patient retention & membership renewal rates are also boosting the segment growth.

Furthermore, a growing number of specialists in concierge medicine is favoring the segment growth. However, strict patient abandonment regulations are likely to hinder the growth of this segment. High compensation and profitability, career satisfaction, and reduced work burden are the prime factors owing to which many solo practitioners are adopting membership-based practices. In addition, due to various Medicare and Medicaid regulations, physicians spend more time on EHR rather than with the patients. The reduced patient panel provides the physicians ample time with each patient and a work-life balance. This is propelling the growth of the standalone segment.

Key Companies & Market Share Insights

The market is fragmented with the presence of various solo and group concierge physicians. Concierge care providers are continuously focusing on bringing renowned clinical experts to have high patient members. Partnership and collaborations with the physicians is a common growth strategy followed by the key market players. Apart from this, companies, such as Crossover Health and Signature MD, are increasingly focusing on acquisition and funding.

For instance, in March 2021, Crossover Health received USD 168 million in Series D funding led by Deerfield Management Company. In March 2021, Signature MD announced a merger with Cypress Membership Medicine in partnership with Blue Sea Capital. The merger will strengthen SignatureMD’s position as one of the largest providers of concierge medicine services. Some prominent players in the U.S. concierge medicine market include:

• MDVIP

• Signature MD

• Crossover Health

• Specialdocs Consultants, LLC

• PartnerMD

• Concierge Consultants & Cardiology

• Castle Connolly Private Health Partners

• Peninsula Doctor

• Cambell Family Medicine

• Destination Health

• Priority Physicians, Inc.

• U.S. San Diego Health

U.S. Concierge Medicine Market Report Scope

Segments Covered in the Report

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 the purpose of this study, Grand View Research has segmented the U.S. concierge medicine market report on the basis of application and ownership:

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

  • Primary Care

  • Pediatrics

  • Osteopathy

  • Internal Medicine

  • Cardiology

  • Psychiatry

  • Others

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

  • Standalone

  • Group