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Health care industry

The Managed Healthcare Industry: A Concentrated Market with $350 Billion in Annual Revenue

Strategic Insights

— 1 min read

The managed healthcare industry in the US is a large and complex market, with over 3,000 companies generating approximately $350 billion in annual revenue. The industry has become increasingly concentrated, with the 50 largest companies holding more than 60% of the market share. This concentration is driven by the rising costs of providing medical care, which creates a demand for efficient operations and favorable contracts with healthcare providers. Large companies and organizations have an advantage in negotiating these contracts, while small companies can only compete successfully by offering special coverage plans or serving small markets.

Key Takeaways:

  • The managed healthcare industry in the US includes over 3,000 companies with combined annual revenue of approximately $350 billion.
  • The 50 largest companies in the industry hold more than 60% of the market share, indicating a high level of concentration.
  • Large companies and organizations have an advantage in negotiating contracts with healthcare providers, while small companies face significant challenges in competing.
  • Annual revenue per employee in the industry is close to $1 million, indicating a high level of automation.
  • The industry provides various types of health insurance plans, including HMOs, PPOs, POS plans, and indemnity benefit plans, each with built-in cost containment measures.
  • Companies such as Aetna, UnitedHealth Group, and Humana, as well as the Blue Cross and Blue Shield Association and nonprofits such as Kaiser Permanente, are major participants in the industry.
  • The industry is driven by the rising costs of providing medical care, creating a demand for efficient operations and favorable contracts with healthcare providers.

Statistics:

  • The managed healthcare industry in the US includes over 3,000 companies with combined annual revenue of approximately $350 billion.
  • The 50 largest companies in the industry hold more than 60% of the market share.
  • Annual revenue per employee in the industry is close to $1 million.
  • The industry provides various types of health insurance plans, including HMOs, PPOs, POS plans, and indemnity benefit plans.

Sources:

  • Research and Markets (http://www.researchandmarkets.com/research/f78b21/managed_healthcare)
  • Managed Care Weekly Digest editors
  • NewsRx.com

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