United States Physician Groups Market By Practice Type (Single Specialty Group, Multi-Specialty Group), By Practice Size (Fewer than 5 Physicians, 5 to 10, 11 to 24, 25 to 49, 50+ Physicians), By Ownership (Physician-owned, Hospital-owned, Private Equity-owned, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The United States Physician Groups Market was valued at USD 342.21 Billion in 2024 and is expected to reach USD 530.66 Billion by 2030 with a CAGR of 7.56%. The United States Physician Groups Market is witnessing considerable expansion due to ongoing transformations within the healthcare delivery system. A significant driver behind this growth is the escalating demand for value-based care models, which prioritize patient outcomes and cost-efficiency. Physician groups are increasingly aligning with these models to enhance care coordination, improve quality, and optimize reimbursement under alternative payment models. The consolidation of smaller practices into larger, multispecialty groups has allowed for shared resources, improved patient access, and the integration of care across multiple disciplines. Furthermore, the rising geriatric population with complex health conditions is fueling the need for continuous and multidisciplinary medical care, which physician groups are well-positioned to provide. This demographic shift has increased the frequency of patient visits and expanded the role of such groups in preventive and long-term care management.

The market is also experiencing a surge in private equity investments in physician practices. Investors are drawn to the recurring revenue potential and scalability of group practices, especially those operating in high-demand specialties like cardiology, dermatology, and orthopedics. Another trend gaining traction is the adoption of digital health tools to streamline operations, enable remote patient monitoring, and enhance patient engagement. Electronic health records (EHR), telehealth platforms, and AI-based diagnostics are being integrated into physician group workflows to increase efficiency and support clinical decision-making. Multispecialty groups are becoming more prevalent, allowing for comprehensive care under one roof and reducing unnecessary referrals or delays. Physician burnout and administrative burdens, once major challenges, are being mitigated by outsourcing non-clinical functions and employing advanced health IT solutions, further boosting operational resilience.

Despite this progress, the market faces challenges that could hinder growth. High operating costs, particularly for maintaining infrastructure and hiring specialized staff, remain a concern for smaller or independent practices. Complex and frequently changing reimbursement policies add administrative stress, making it difficult for physician groups to maintain financial stability. Interoperability issues between different EHR systems can obstruct seamless patient data sharing, compromising care coordination. Physician shortages in rural and underserved areas also limit market penetration, as access to healthcare remains inconsistent. Furthermore, the shift from fee-for-service to value-based models, while beneficial in the long term, requires significant upfront investments in data analytics and care management platforms. Resistance from older physicians or those unaccustomed to group practice settings can also slow down consolidation efforts, creating disparities in care standards across different organizations. Addressing these hurdles will be crucial to sustaining momentum in the evolving physician groups landscape.

Key Market Drivers

Rising Demand for Outpatient and Ambulatory Services

​The rising demand for outpatient and ambulatory services is a significant driver of growth in the United States Physician Groups Market. As healthcare systems transition toward value-based models, there is an increasing emphasis on cost-efficiency, patient convenience, and improved clinical outcomes. This transformation has led to a surge in the establishment and expansion of physician groups offering outpatient services, including routine check-ups, diagnostic procedures, chronic disease management, and minor surgeries. Patients and payers are progressively favoring ambulatory settings due to their lower costs compared to inpatient care, shorter wait times, and quicker recovery periods. Physician groups are capitalizing on this shift by investing in infrastructure and technologies that allow them to deliver high-quality care outside traditional hospital environments.​

The trend is further fueled by advancements in medical technologies that enable complex procedures to be safely performed in outpatient settings. Innovations in minimally invasive techniques, portable diagnostics, and remote patient monitoring tools have empowered physician groups to broaden their service offerings while maintaining high standards of care. Health insurers are also designing reimbursement models that support outpatient treatment pathways, encouraging both providers and patients to adopt this approach. Physician groups that operate in ambulatory care are increasingly seen as integral to reducing overall healthcare expenditure, improving care coordination, and enhancing patient satisfaction, all of which align with national healthcare priorities and payer expectations. This growing reliance on outpatient services is reshaping physician group structures and service delivery models across the United States, driving significant market expansion.​

According to the Centers for Disease Control and Prevention (CDC), in 2023, there were approximately 1.0 billion physician office visits in the United States, with 84.5% of adults and 95.0% of children having had a visit with a doctor or other healthcare professional in the past year. These figures underscore the substantial and growing utilization of outpatient services, highlighting the critical role of physician groups in meeting the nation's healthcare needs.

Technology Adoption and Digital Transformation

​Technology adoption and digital transformation are significantly accelerating the growth of the United States Physician Groups Market. The integration of advanced technologies such as Electronic Health Records (EHRs), telemedicine platforms, data analytics, and Artificial Intelligence (AI) has revolutionized how physician groups deliver care, manage operations, and engage with patients. EHR systems have become essential in streamlining clinical workflows, reducing administrative burden, and enabling better coordination among healthcare professionals. With seamless access to patient histories and diagnostic data, physicians are making more informed decisions, which directly impacts the quality of care and patient outcomes.​

Telehealth solutions have expanded access to healthcare, especially in remote and underserved areas, and have become a permanent fixture in the operational models of physician groups. By allowing virtual consultations, these platforms reduce overhead costs, improve appointment adherence, and enhance patient satisfaction. The integration of AI tools is also enabling predictive analytics, risk stratification, and automation of routine tasks such as billing and scheduling, resulting in greater efficiency and scalability for physician practices.​

Digital transformation is also reshaping patient engagement through mobile health apps and portals that allow users to schedule visits, view lab results, and communicate with healthcare providers in real-time. These tools foster better patient-provider relationships and support preventative care models. As healthcare becomes increasingly value-driven, the ability of physician groups to harness digital technologies to improve clinical efficiency and patient experience is becoming a competitive necessity. With regulatory incentives supporting digital health initiatives and a growing preference among patients for tech-enabled care, the adoption of digital solutions is emerging as a core driver propelling the expansion and modernization of physician groups across the United States. The trend is expected to intensify in the coming years as technology continues to evolve and redefine care delivery models.

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Key Market Challenges

Regulatory Complexity and Compliance Burden

Regulatory complexity and compliance burden present significant challenges for the United States Physician Groups Market. Physician groups are required to navigate a highly intricate web of federal, state, and local healthcare regulations, including those imposed by the Centers for Medicare & Medicaid Services (CMS), the Health Insurance Portability and Accountability Act (HIPAA), and the Stark Law, among others. Compliance with these regulations demands extensive administrative oversight and financial investment, particularly in areas such as data privacy, billing practices, coding accuracy, and quality reporting. Even minor non-compliance can result in significant penalties, audits, and reputational damage, placing smaller physician groups at greater risk due to limited administrative resources.

Constantly evolving healthcare policies and updates to reimbursement models, such as the shift from fee-for-service to value-based care, intensify the complexity. Physician groups must frequently update internal processes, invest in new technologies, and train staff to stay compliant with these changes. This dynamic environment can slow innovation, create operational inefficiencies, and divert focus from patient care. The burden of managing regulatory requirements also makes it difficult for independent practices to compete with larger, integrated systems that possess dedicated compliance teams and infrastructure. These challenges not only restrict growth and scalability but also contribute to consolidation trends, as smaller physician groups often opt for acquisition or partnerships to share the compliance load. The need for continuous regulatory vigilance, combined with the financial and time costs associated with compliance, underscores a major barrier to the sustainable expansion of physician groups in the U.S. healthcare landscape.

Administrative and Operational Inefficiencies

Administrative and operational inefficiencies represent a significant challenge for the United States Physician Groups Market. Many physician groups, particularly small to mid-sized practices, struggle with the increasing complexity of administrative tasks required to comply with federal regulations, insurance protocols, and value-based reimbursement models. These inefficiencies stem from fragmented health information systems, outdated billing software, and a lack of standardized workflows, all of which contribute to increased clerical burden on physicians and staff. As a result, providers often spend substantial time on non-clinical duties, leading to reduced face-to-face patient interaction, lower productivity, and heightened risk of burnout among healthcare professionals.

The transition to electronic health records (EHRs), although designed to streamline care, often introduces workflow disruptions when systems are not fully integrated or user-friendly. Many practices face challenges in extracting actionable insights from EHR data due to inconsistent documentation or limited interoperability across platforms. In multi-physician or multispecialty groups, coordination between different departments can become time-consuming without efficient communication tools or centralized decision-making. Denials management and insurance claims processing further exacerbate administrative strain, leading to delayed payments and financial instability for smaller groups.

These inefficiencies hinder operational scalability and impact patient satisfaction due to longer wait times and less personalized care. Investing in robust health IT infrastructure, process automation, and specialized staff for administrative functions is essential, but resource constraints often prevent smaller practices from making these upgrades. As the healthcare landscape shifts toward more performance-based care, physician groups that cannot resolve these inefficiencies may face challenges in maintaining competitiveness and delivering high-quality outcomes. Addressing this issue requires strategic investments, workflow redesign, and policy support to ease the administrative burden and improve care delivery at the group level.

Key Market Trends

Focus on Multispecialty and Integrated Care Models

​The United States Physician Groups Market is experiencing a significant shift toward multispecialty and integrated care models, driven by the imperative to deliver comprehensive, patient-centered services that enhance outcomes and reduce costs. Multispecialty physician groups enable providers to offer a broad spectrum of services within a single organizational structure, facilitating seamless communication between primary care physicians and specialists. This approach enhances care coordination and efficiency, particularly benefiting patients with chronic conditions and multiple comorbidities. Integrated care models align clinical, administrative, and financial aspects of healthcare delivery, promoting operational synergy and meeting the performance standards required under value-based reimbursement frameworks.​

Healthcare payers, including Medicare and private insurers, are increasingly incentivizing integrated care through programs such as bundled payments, shared savings models, and performance-based bonuses. These financial structures reward physician groups that demonstrate high-quality care, improved patient satisfaction, and reduced hospital readmissions. The growing availability of health IT tools, electronic health records, and population health analytics supports the transition to integrated care by providing real-time data that helps monitor outcomes and tailor treatment plans.​

As of December 2024, the Centers for Medicare & Medicaid Services (CMS) reported that approximately 2,100 practices are participating in the Primary Care First (PCF) model across 26 regions, with 17 payer partners involved. This model emphasizes advanced primary care practices ready to assume financial risk and receive performance-based payments. The PCF model aims to improve care for Medicare fee-for-service beneficiaries and lower costs for CMS by offering capitated payments along with visit-based payments, with the opportunity for substantial performance-based adjustments. According to CMS's second annual evaluation report, PCF practices provided care to 11% of all Medicare fee-for-service beneficiaries, approximately 2 million individuals. This underscores the growing adoption of integrated care models in the physician group landscape.​

The Centers for Medicare & Medicaid Services (CMS) has also introduced the Making Care Primary (MCP) model, a 10.5-year multi-payer initiative launched in July 2024 across eight states. The MCP model aims to improve care management and coordination, equipping primary care clinicians with tools to form partnerships with specialists and community-based organizations. By addressing patients' health-related social needs, such as housing and nutrition, the MCP model seeks to strengthen the primary care foundation of the healthcare system. These initiatives reflect a broader trend toward integrated, value-based care models that prioritize patient outcomes and cost efficiency.​

As healthcare continues to evolve toward preventative and coordinated care, physician groups adopting multispecialty and integrated models are better positioned to thrive in a competitive and outcomes-driven landscape.

Increased Investment in Digital Health and Remote Monitoring

​The United States Physician Groups Market is experiencing a significant shift toward multispecialty and integrated care models, driven by the imperative to deliver comprehensive, patient-centered services that enhance outcomes and reduce costs. Multispecialty physician groups enable providers to offer a broad spectrum of services within a single organizational structure, facilitating seamless communication between primary care physicians and specialists. This approach enhances care coordination and efficiency, particularly benefiting patients with chronic conditions and multiple comorbidities. Integrated care models align clinical, administrative, and financial aspects of healthcare delivery, promoting operational synergy and meeting the performance standards required under value-based reimbursement frameworks.​

Healthcare payers, including Medicare and private insurers, are increasingly incentivizing integrated care through programs such as bundled payments, shared savings models, and performance-based bonuses. These financial structures reward physician groups that demonstrate high-quality care, improved patient satisfaction, and reduced hospital readmissions. The growing availability of health IT tools, electronic health records, and population health analytics supports the transition to integrated care by providing real-time data that helps monitor outcomes and tailor treatment plans.​

As of 2024, the Centers for Medicare & Medicaid Services (CMS) reported that Accountable Care Organizations (ACOs) are now serving nearly half of the people with Traditional Medicare, a 3% increase since 2023. This growth in ACOs is significant, as they have been shown to deliver superior quality performance compared to similar physician groups not participating in ACOs, and they have generated year-over-year savings for the Medicare Trust Fund. ​

In fiscal year 2024, CMS outlays totaled approximately USD 1,516 billion, accounting for 22% of total federal outlays. This substantial investment underscores the federal government's commitment to supporting integrated care initiatives and reflects the growing importance of coordinated care models in the U.S. healthcare system.​

These developments highlight a broader trend toward integrated, value-based care models that prioritize patient outcomes and cost efficiency. As healthcare continues to evolve toward preventative and coordinated care, physician groups adopting multispecialty and integrated models are better positioned to thrive in a competitive and outcomes-driven landscape.

Segmental Insights

Practice Type Insights

Based on the Practice Type, Single Specialty Group emerged as the dominant segment in the United States Physician Groups Market in 2024. This is its streamlined operations, clinical efficiency, and specialized focus. These groups typically concentrate on a particular area of medicine, such as cardiology, dermatology, or orthopedics, allowing physicians to develop deep expertise, standardized treatment protocols, and improved patient outcomes within their specialty. This focused care model attracts both patients and payers seeking high-quality, cost-effective treatment options. Additionally, single specialty groups benefit from operational efficiencies and stronger negotiating power with insurers due to their specialization, helping to boost revenue and profitability.

Practice Size Insights

Based on the Practice Size, Fewer than 5 Physicians emerged as the dominant segment in the United States Physician Groups Market in 2024. This is due to the growing preference for personalized care and patient-centric service models. Smaller physician groups are often more agile, allowing them to build stronger relationships with patients, offer flexible scheduling, and provide consistent continuity of care. These practices typically emphasize individualized treatment and maintain a high level of physician involvement in administrative and clinical decisions, which enhances trust and satisfaction among patients. The intimate structure of smaller practices is especially attractive in primary care and family medicine, where long-term patient engagement is essential.

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Regional Insights

The Mid-West region emerged as the dominant region in the United States Physician Groups Market in 2024. This is due to its well-established healthcare infrastructure, favorable reimbursement landscape, and increasing consolidation of physician practices. States in the Mid-West, such as Illinois, Ohio, and Michigan, have seen significant growth in both independent and hospital-affiliated physician groups, driven by a strong emphasis on value-based care and coordinated service delivery. These states benefit from a relatively balanced mix of urban and rural populations, prompting healthcare providers to adopt diverse practice models that address both high-volume urban demand and rural access gaps.

Recent Developments

• In March 2025, Seoul Medical Group (SMG) and Korean American Medical Group (KAMG) merged to create a leading independent physician association in the U.S. The transaction is sponsored by Ascend Capital Partners, a private equity firm focused on enhancing healthcare access and affordability for underserved populations. The merger forms one of the largest physician-led networks in the U.S., providing high-quality clinical and non-clinical services. SMG and KAMG now serve nearly 100,000 patients and over 5,000 primary care and specialist physicians across several states, including California, Georgia, and New York.
• In November 2024, Cardinal Health announced definitive agreements to acquire two companies, boosting its strategic growth and enhancing patient care. The company will acquire a 71% majority stake in GI Alliance (GIA), the leading gastroenterology management services organization in the U.S., for USD 2.8 billion in cash. GIA will become part of Cardinal Health’s Pharmaceutical and Specialty Solutions segment. Additionally, Cardinal Health will acquire Advanced Diabetes Supply Group (ADSG), a major provider of diabetic medical supplies, for USD 1.1 billion in cash. ADSG will be integrated into Cardinal Health’s at-Home Solutions business. These acquisitions align with the company’s growth objectives and strengthen its healthcare services portfolio.
• In July 2024, Sanford Health, the largest rural health system in the U.S., and Marshfield Clinic Health System, a physician-led integrated health system, announced a nonbinding Memorandum of Understanding to combine their assets and create an integrated health system focused on advancing world-class care in rural Midwest regions. Both organizations have a strong history of providing exceptional healthcare to rural communities in the U.S.
• In April 2024, Elevance Health and Clayton, Dubilier & Rice (CD&R) announced a strategic partnership aimed at advancing primary care delivery in the U.S. The collaboration combines Elevance Health’s Carelon Health and CD&R's apree health and Millennium Physician Group (MPG) assets to innovate and enhance healthcare services. The partnership focuses on improving the healthcare experience and outcomes across multiple U.S. regions.

Key Market Players

• Cleveland Clinic
• Kaiser Foundation Health Plan, Inc. (The Permanente Medical Group, Inc.)
• UNITEDHEALTH GROUP (Optum, Inc.)
• Select Medical (Select Physical Therapy)
• C-HCA, Inc. (HCA Florida Healthcare Physicians (HCA, Inc.))
• University of Pittsburgh Physicians (UPMC Physicians)
• NYU Langone Health (NYU Langone Hospitals)
• Northwestern Memorial HealthCare (Northwestern Medicine)
• HealthCare Partners IPA (HealthCare Partners, MSO)
• Northwell Health (Northwell Health Physician Partners)
• Penn Medicine Physicians (The Trustees of the University of Pennsylvania)

Report Scope:

In this report, the United States Physician Groups Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Physician Groups Market, By Practice Type:

o   Single Specialty Group

o   Multi-Specialty Group

• United States Physician Groups Market, By Practice Size:

o   Fewer than 5 Physicians

o   5 to 10

o   11 to 24

o   25 to 49

o   50+ Physicians

• United States Physician Groups Market, By Ownership:

o   Physician-owned

o   Hospital-owned

o   Private Equity-owned

o   Others

• United States Physician Groups Market, By Region:

o   North-East

o   Mid-West

o   West

o   South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Physician Groups Market.

Available Customizations:

United States Physician Groups Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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