U.S. Physician Groups Market Latest Innovations And Challenges By 2030

U.S. Physician Groups Market Summary

The U.S. physician groups market size was valued at USD 349.49 billion in 2024 and is projected to expand at a CAGR of 7.62% from 2025 to 2030. Growth is being driven by multiple factors, including favorable government initiatives aimed at improving physician group revenues, the adoption of value-based care models, and a notable shift of solo practitioners toward joining larger healthcare organizations. Over the past few years, there has been a clear movement of physicians transitioning away from independent or small practices to larger physician groups and health systems, creating a more consolidated healthcare landscape.

The increasing trend of solo practitioners joining larger physician groups is significantly contributing to market expansion in the U.S. Cost-effectiveness, improved access to advanced infrastructure, and better financial stability are the primary reasons influencing this transition. Additionally, the implementation of the Health Information Technology for Economic and Clinical Health (HITECH) Act, which incentivizes the adoption of Electronic Health Record (EHR) systems, has further accelerated the movement towards larger groups. According to a study conducted by the Physicians Advocacy Institute in collaboration with Avalere Health, the number of physicians employed by hospitals or corporate-owned practices rose to approximately 484,100 in 2022, up from 375,400 in 2019, marking an increase of 28.9%. This rapid rise in employment has reduced the proportion of solo practitioners, signaling a broader consolidation trend across the U.S. healthcare industry.

Key Market Trends & Insights

• Based on practice type, the single-specialty segment dominated the market with the largest revenue share of 60.74% in 2024. This dominance is largely due to declining patient volume, financial challenges, and reduced visits to single-specialty practices, which have led to consolidation within this segment. Despite these challenges, many single-specialty groups continue to attract patients seeking focused care for specific medical needs.
• The multi-specialty group segment is anticipated to grow at the fastest CAGR over the forecast period. These groups provide patients with access to multiple medical specialties under one roof, offering convenience, continuity of care, and comprehensive treatment options. This integrated approach reduces the need for patients to visit multiple providers across different locations, improving care coordination and overall patient satisfaction.
• Based on practice size, groups with fewer than five physicians held the largest revenue share of 36.49% in 2024. The preference for smaller practices stems from the autonomy they provide to physicians, as well as the ability to maintain control over clinical decisions and practice operations. Such groups are often associated with high-quality, personalized care, as they place a strong emphasis on patient relationships and tailored services. According to the American Medical Association, about 20% of physicians work in practices with 5 to 10 physicians, reflecting the continued importance of smaller groups within the U.S. market.
• In terms of ownership, the physician-owned segment led the market with the largest revenue share of 48.88% in 2024. These practices benefit from higher profit margins, economies of scale, and strong patient loyalty due to their reputation for delivering quality care. Physician-owned groups also tend to retain greater decision-making authority, allowing them to adapt quickly to changing healthcare policies and patient demands.
• Geographically, the Southeast region accounted for the largest revenue share of 25.32% in 2024. States such as Florida and Georgia have witnessed a significant transformation, with independent physician practices collaborating to form broader networks. These networks enable enhanced resource sharing, better care coordination, and improved accessibility for patients. The consolidation trend in the Southeast has become a defining feature, positioning the region as a key growth hub within the U.S. physician groups market.

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Market Size & Forecast

• 2024 Market Size: USD 349.49 billion
• 2030 Projected Market Size: USD 542.99 billion
• CAGR (2025 - 2030): 7.62%

Key Companies & Market Share Insights

The market is fragmented, with the presence of multiple major players. Key players are adopting growth strategies to enhance their market presence, including collaborations and mergers & acquisitions. The integrated physician group model - characterized by shared governance, unified financial strategies, centralized operations, and value-based clinical services - is becoming increasingly prominent in the U.S. healthcare market.

Key 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)
• RWJ Barnabas Health Medical Group
• Ascension
• Penn Medicine Physicians (The Trustees of the University of Pennsylvania)

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Conclusion

The U.S. physician groups market is witnessing strong growth, supported by government initiatives, technological advancements, and the widespread adoption of value-based care. The consolidation of smaller practices into larger physician groups is reshaping the healthcare delivery model, ensuring cost efficiency and better patient outcomes. While single-specialty practices continue to hold a dominant share, multi-specialty groups are expanding rapidly due to their integrated service offerings. Ownership models and regional dynamics further highlight the diversity of the market. With evolving patient expectations, physician groups are expected to play a central role in shaping the future of accessible and efficient healthcare delivery.