INSIGHTS AND RESEARCH
If the United States is known for one thing, that thing is, certainly, the absence of free healthcare. Consequently, healthcare in the US is a huge market and investment opportunity. Unsurprisingly COVID-19 accelerated the adoption of a digitalised approach to healthcare in general, moreover, it has permanently altered how primary care is delivered. The U.S. primary care physicians market size is expected to exceed $341.9 billion by 2030 and to exhibit a CAGR of 3.2% in the next 7 years. Currently, the market size is $295.5 billion, for comparison.
Primary care refers to the first point of contact between patients and the healthcare providers. Primary care physicians are typically family doctors, paediatricians, or general practitioners, who provide routine medical care, disease prevention and management, and can refer a patient to specialized care where needed. Primary care is often overlooked as the backbone of healthcare, especially in developed countries, because a “first point” of contact for routine medications and illnesses is overshadowed by specialist clinics and those dealing with emergencies. Nonetheless, primary care plays a significant role in promoting health and preventing disease withing any given demographic, more so when it comes to an aging population which the US is heavily experiencing at present. Primary care physicians are trained to identify and manage chronic diseases, such as diabetes, hypertension, and asthma, which affect a large percentage of the US population. Early detection and management of these conditions can prevent the progression of the disease, reduce complications, and ultimately save lives. In addition, primary care providers focus on health promotion, screening, and education, such as encouraging healthy lifestyle habits, like regular exercise, reducing alcohol, drug and tobacco consumption, as well as maintaining the delivery of routine vaccinations.
In addition to promoting health, primary care is also essential for controlling healthcare costs. Studies have shown that primary care is associated with lower overall healthcare costs, fewer hospitalizations, and lower mortality rates. By providing preventive and early detection services, primary care can reduce the need for expensive and last-minute ICU stays, and can alleviate the volume of patients needing immediate, complex and life-saving treatments deeper into the healthcare system. According to a CDC survey in 2019, around 51.2% of physician office visits were made for primary care services. The number speaks for itself. As such, investing in primary care will reduce the burden on the system as a whole and help in making healthcare more accessible. There are, of course, other areas of healthcare which too fall under "alternative care" and are being heavily invested in alongside PHC - in the US alone in 2022 $923 million worth of deals was made in this sector.
As mentioned previously, “the pandemic has accelerated the use of digital tools that use big data and machine learning in every health sector, helping to make many operations more efficient and spur innovation.” In the wake of true digital era there are four main ways in which technology is re-inventing primary care:
With the advent of telemedicine, primary care providers now offer virtual consultations to patients using video conferencing technology. Moreover, telemedicine allows providers to diagnose and treat patients remotely, making healthcare more accessible to those who may not be able to travel to a specialised facility or go to a pharmacist for a prescription. It further allows providers to offer care outside of regular office hours and can reduce wait times for patients, making the provision of primary care quicker and more efficient.
EHRs are digital records that contain a patient's full medical history - including diagnoses, treatments, prescriptions and test results. EHRs allow primary care providers to access a patient's medical history quickly, without having to ask patients to locate pieces of paper once given to them at various different clinics. This digitalisation reduces the risk of medical errors due to incomplete or inaccurate medical records meanwhile also allowing providers to share patient information with other healthcare providers, improving care coordination and communication within the healthcare system.
Remote patient monitoring permits primary care providers to monitor patients' health remotely using wearable devices, such as blood glucose monitors, blood pressure monitors, spirometers, activity trackers and heart rate monitors. These devices can be centralised into one app or one patient portal, thus providers now have an ability to track patients' vital signs in real-time, enabling earlier detection of changes in health status and allowing for prompt intervention.
Technology has also led to the development of patient engagement tools, such as, for instance, online health communities. Patients can therefore take a more active role in their own healthcare - enabling them to schedule appointments, access test results, and communicate with their providers more frequently should questions or problems arise. Patient engagement tools can improve patient satisfaction, increase adherence to treatment plans, and ultimately improve health outcomes.
In 2021 the United States accounted for “almost 80% of global HCIT (Healthcare Internet Technologies) volume and more than 90% of value, and the region’s large independent health systems, employer-sponsored insurance, and robust tech ecosystem should continue to attract an outsize share of IT-focused investment.” The other more inviting cause to invest in digitalising primary care in the US is that there is expected to be shortage of around 45,000 physicians by 2030. Moreover, more than 70% of physicians do not currently work alongside other specialists, and more than 45% do not work alongside advanced practice providers (APPs), as estimated by Bain & Company. Such numbers are not sustainable and a technological re-structuring of the connectivity within US healthcare is unavoidable. For providers in the US, investing into tech-enabled primary care is the way forth to “address avoidable spend more holistically” meanwhile preserving operational efficiency of the healthcare they set out to provide. Lastly, given that investment by the EU and the UK into PHC remains at an all-time high, and that they already have government funded free healthcare, it is abundantly clear that PHC is a worthwhile, if not essential, investment.
References:
[2] Primary Care Doctors in the US - Market Size | IBISWorld
[8] Investing in the new era of value-based care | McKinsey
February 17, 2023
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