U.S. Office Based Labs Market Size, Share, Market Research and Industry Forecast Report 2020-2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: U.S. Office Based Labs Market


The U.S. office based labs market size was valued at USD 8.5 billion in 2019 and is expected to register a CAGR of around 9% from 2020 to 2027. The rising trend of performing surgical procedures in outpatient settings coupled with rising prevalence of various vascular diseases is projected to drive the demand for office-based labs (OBL) in the country. Additionally, high patient satisfaction with a focused and dedicated team of doctors is expected to boost the market. The service providers available in the country, such as National Cardiovascular Partners and Envision Healthcare and Surgery Partners, provide office-based surgical solutions and services at affordable cost.

Furthermore, key manufacturers such as Philips Healthcare and Siemens Healthineers have been entering into partnerships with physicians to set up OBLs, equipping laboratories with required devices and providing complete solutions from start to end, which is expected to propel the market over the forecast period.

When compared with Hospital Outpatient (HO) settings, establishing an OBL is beneficial for physicians in terms of reimbursements. Office-based laboratories reduce the cost of vascular procedures, due to availability of high reimbursement. According to Elsevier, Inc., the percentage of procedures performed for Medicare beneficiaries increased to 76% from 2011 to 2015. Overall, the adoption of procedures has increased by 30% in HO settings, by 380% in OBLs, and has decreased by 16% in Hospital Inpatient (HI) settings.

The U.S. OBL market faces challenges such as limited availability of anesthetic techniques and resources, which can put patient safety at risk, and lack of technical training for minimally invasive surgical procedures. The lack of definitive training and educational programs pertaining to the use of MIS devices makes surgeons reluctant to use this technology in OBL settings.

Modality Insights

Based on modality, the U.S. office-based labs market has been trifurcated into single specialty, multispecialty, and hybrid laboratories. Single specialty OBLs spearheaded the market in 2019, whereas hybrid laboratories are anticipated to witness high growth during the forecast period. Single-specialty OBLs offer more patient-centric treatments with minimum risk of partner divestment in the business. Hybrid models, on the other hand, offer more profitability with multiple facilities under one roof. However, the high cost associated with setting up such kind of labs may restrict their establishment. Multi-specialty labs are also gaining popularity as a partnership business of three to five physicians.

Specialist Insights

On the basis of specialist, the market has been categorized into vascular surgeons, interventional cardiologists, interventional radiologists, and others. Vascular surgeons are the leading service providers in OBL settings and the segment held the dominant market share in 2019. This can be primarily attributed to the rising burden of vascular diseases in the country. All major vascular surgeries, such as aortic, mesenteric, renal, subclavian, iliofemoral, tibial, and pedal, are being performed by vascular surgeons in office settings. With the increasing acceptance of minimally invasive procedures in office settings, the interventional radiologist segment is expected to witness lucrative growth during the forecast period. When compared to vascular surgeons, interventional radiologists are involved in more complex procedures such as coil embolization.

Service Insights of U.S. Office Based Labs Market

Based on service, the U.S. OBL market is segmented into peripheral vascular intervention, endovascular intervention, cardiac, interventional radiology, venous, and other services. Vascular procedures are the most performed kind of servicesin OBL settings. Peripheral Vascular Interventions (PVI) dominated the market in 2019, owing to the high prevalence of atherosclerosis in the country and a large number of balloon angioplasty and stenting procedures performed in patients with blocked arteries and veins.

The endovascular intervention segment is expected to witness high growth during the forecast period, owing to the factors, such as rising prevalence of aortic and coronary aneurysms in the country, increasing acceptance of various endovascular procedures in outpatient settings as well as office-based labs along with growing preference of patients for daycare treatment options.

Regional Insights of U.S. Office Based Labs Market

The concept of OBLs has been most widely accepted and practiced in the U.S. Currently, almost 70% of surgical procedures are performed in outpatient settings. The concept was introduced primarily to focus on vascular surgical procedures in office settings, providing more efficient care at a lower cost. The trend is witnessing a rise owing to less licensing and paperwork required when compared to ambulatory surgery centers (ASC). According to the Journal of the American College of Cardiology in March 2015, the number of peripheral vascular procedures performed in inpatient settings in the country has decreased, thereby leading to an increased number of procedures performed in outpatient settings. This indicates the rising preference for daycare and Office-based treatment options among patients.

Market Share Insights of U.S. Office Based Labs Market

The vendor landscape of this market can be divided into three different sectors, namely, medical imaging device manufacturers, vascular intervention device manufacturers, and service providers who offer end-to-end services to physicians for setting up the labs. Among medical imaging device manufacturers, Philips Healthcare, Siemens Healthineers, and GE Healthcare are the key providers of equipment required in setting up OBLs. Key vascular intervention devices manufacturer include Abbott; Medtronic; Boston Scientific; and Cardiovascular System, Inc. Mergers and acquisitions, technological advancements, and new product launches are some of the strategies adopted by major market players.

For instance, In December 2019, GE Healthcare launched more than 30 new smart devices and imaging intelligent applications at the Radiological Society of North America (RSNA), for radiology departments. In August 2019, Boston Scientific acquired BTG PLC to expand its portfolio of minimally-invasive surgical devices. In March 2019, Koninklijke Philips acquired the Healthcare Information Systems (HCIS) business of Carestream Health to provide imaging IT solutions to radiology services providers, multi-site hospitals, OBLs, specialty clinics, and imaging centers across the globe. Envision Healthcare; Surgery Care Associates, Inc. (SCA); Surgery Partners; National Cardiovascular Partners; CardioVascular Coalition; and Tenet Healthcare Corporation are some of the leading service providers.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of U.S. Office Based Labs Market Research Report

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, this market research report has segmented the U.S. office-based labs market report based on modality, service, and specialist:

Modality Outlook (Revenue, USD Million, 2019 - 2030)

  
Single Specialty Labs
  
Multi-specialty Labs
  
Hybrid Labs

Service Outlook (Revenue, USD Million, 2019 - 2030)

  
Peripheral Vascular Intervention
  
Endovascular Intervention
  
Cardiac
  
Interventional Radiology
  
Venous
  
Others

Specialist Outlook (Revenue, USD Million; 2016 - 2027)

  
Vascular Surgeon
  
Interventional Cardiologist
  
Interventional Radiologist
  
Others