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What is the size of the onsite medical clinic market in the US?
Hi! Thank you for your request to research the size of onsite medical clinic market in the U.S.
The short version is that the market for workplace wellness clinics in the U.S. is valued at $8.2 billion annually. The market is estimated to grow to $14.1 billion by 2020.
Below you will find a deep dive of my research and methodology.
METHODOLOGY
To answer your query my colleague and I looked for market research and industry study about on-site medical clinics in the U.S. We also looked at government papers about the size of this market. Finally, I identified market opportunities that arise from the growing numbers of employers establishing onsite health clinics for their workers in the U.S. Please read on to see the results.
MARKET SIZE
The Department of Labor defines workplace wellness program as an "employment-based activity or employment-sponsored benefit aimed at health-related behaviors (primary prevention or health promotion) and disease management (secondary prevention)." Programs may be part of a group health plan and include lifestyle management interventions. The report published by SAGE Journals entitled "Onsite Health Centers: A Strategic Perspective" interchanges onsite health clinics with stand-alone worksite health centers and states that midsize and large employers are implementing "onsite health and wellness centers with the objective of improving access to health services, cost performance and quality of care outcomes for their health benefit plan investment."
According to the Department of Labor's paper "A Review of the U.S. Workplace Wellness Market", there are about 73 million workers in companies with more than 100 employees as shown by Census data. This is the typical company size at which corporations start offering wellness programs. The Department reports that an estimated 55 million employees have access to workplace wellness programs. With cost ranging from $50 and $150 per program-eligible employee per year, the Department estimates the market for workplace wellness in the U.S. at $2.7 billion to $8.2 billion annually.
MARKET GROWTH
The pioneering white paper from Fuld & Company estimated the growth of onsite health clinics at 15% to 20% a year. Applying the same Compound Annual Growth Rate to the higher-end market size of $8.2 billion gives us the onsite medical clinic market size of $12.4 billion to $14.1 billion by 2020.
According to a 2015 survey conducted by Mercer among employers, worksite clinics are now offered in 29% of companies with more than 5,000 employees compared to 24% in 2013.
Another survey from Towers Watson and Willis also show that two-thirds (66%) of surveyed employers plan to expand their onsite health service by 2018. 38% also said they plan to add more health centers.
MARKET OPPORTUNITY
Modern Healthcare observes that the growing number of U.S. employers opening on-site health clinics have produced a growth market for companies that operate clinics for employers. Top players include Healthstat, Marathon Health, Premise Health, and QuadMed.
The article also adds that 64% of employers contract their on-site clinic contract to a third-party vendor while 23% of employers directly operate their clinics.
CONCLUSION
To wrap it up, the market for workplace wellness clinics in the U.S. is valued at $8.2 billion annually. The market is estimated to grow to $14.1 billion by 2020, thanks to more employers establishing onsite health clinics either directly or through third-party vendors.
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