III. Industry Analysis
The Primary Care/Family Doctors industry is expected to continue to grow at a steady pace over the next five years.
A major driver of the industry is the rise of chronic illnesses, which are disproportionately prevalent in older adults, has risen significantly due to demographic shifts brought on by the aging of the baby-boomer population. The number of individuals aged 65 and older has grown at an annualized rate of 3.3% over the past five years.
Rising total health expenditure and increasing federal funding for Medicare and Medicaid were also principal drivers of revenue during the current period. Total health expenditure, which measures private and public spending on health, has grown at an annualized rate of 3.7% over the past five years. In addition, federal funding for Medicare and Medicaid has grown at an annualized rate of 3.9% during the same period. Broadly speaking, an aging US population and longer life expectancies brought about by advancements in the medical field fueled demand for primary care services.