October 2024
The global third-party medical institutions market size is on an upward trajectory, poised to generate substantial revenue growth, potentially climbing into the hundreds of millions over the forecast years from 2024 to 2034. This surge is attributed to evolving consumer preferences and technological advancements reshaping the industry. The demand for third-party institutions is increasing due to the growing senior population. This population constantly needs medical support. However, hospitals are fully occupied most of the time, and hence, not everyone can visit the hospital for healthcare purposes and seek medical attention from third-party institutions.
The third-party medical institutions market comprises healthcare providers that operate independently outside the significant medical systems and hospitals. Third-party service providers include laboratories, clinics, rehabilitation centers, and imaging centers. These institutions provide various healthcare services in specialized areas or multiple areas of healthcare. The institutions also collaborate with major healthcare systems to mitigate the gaps in medical services and provide support in various areas such as care options, diagnostics, and treatment. The market is growing significantly due to the growing number of patients. It becomes hectic and complicated for hospitals to handle all the services associated with patient care; hence, third-party medical institutions support hospitals to provide quality care.
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Chronic conditions pose a huge burden on healthcare resources and hospitals. Chronic conditions require continuous monitoring and treatment to avoid emergency situations. The growing elderly population and unhealthy lifestyles are the major causes of the growing number of patients with chronic conditions. Third-party medical institutions play a significant role in supporting major medical systems by providing test results, data analysis, and treatment options. Many third-party institutions specialize in one area and are capable of providing better services to highly skilled professionals.
The third-party medical institutions market faces challenges because of the continuous changes in healthcare policies. The institutions need to strictly stick to the rules and guidelines provided in the new policies to avoid any legal issues, which becomes a challenge in the long run.
North America Dominated the third-party medical institutions market in 2023. North America is home to advanced healthcare infrastructure, technological advancements, and highly skilled healthcare professionals, all of which contribute to the market’s growth. There are several other factors that add up to the growth, including government initiatives, collaboration among key players, investments by government & organizations, and growing awareness among people. The U.S. and Canada have contributed significantly to the growth.
The U.S. is the major shareholder in the third-party medical institutions market due to the presence of a highly advanced medical system, health insurance companies, and partnerships between different organizations. Another major factors that contribute to the market’s growth is the growing prevalence of diseases like obesity, cancer, diabetes, COPD, cardiovascular diseases, etc. Also, there is a strong presence of healthcare laboratories in the U.S. that are responsible for providing top-quality care. According to the Centers for Disease Control and Prevention, there are more than 330,000 CLIA-certified laboratories in the U.S. responsible for conducting 14 billion tests annually. Around 70% of medical decisions depend on these laboratory tests.
Canada held the second-largest share of the third-party medical institutions market in 2023. Canada has a strong presence of third-party institutions such as physicians' offices and diagnostic laboratories. According to the Government of Canada, there were 99,142 physicians' offices and 4,215 medical & diagnostics laboratories in Canada. The government is also investing significantly in the life science sector to improve healthcare services.
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Asia Pacific is expected to grow at the fastest rate during the forecast period. Asia Pacific is advancing in healthcare systems and technology. Governments and various organizations are taking necessary steps to promote the growth of the third-party medical institutions market in Asia Pacific. The region consists of the largest population, which puts the burden on the healthcare sector. Therefore, third-party institutions are important for addressing healthcare needs. The region also has a growing number of various diseases, including diabetes, cancer, COPD, and infectious diseases.
India is a significant contributor to the market’s growth because there has been a growing number of policies and investments by the government and organizations to improve the country's healthcare system. For instance, the number of DMCs has increased by 80% from 2014 (13583) to 2023 (24449). In the last decade, there have been 6196 new molecular diagnostic laboratories, and TB treatment centers’ numbers increased from 127 in 2014 to 792 in 2022. Apart from this, the ABPM-JAY scheme launched by the India Government is also promoting people's use of healthcare services. For instance, under this program, there has been a total of 6.11 crore hospital admissions accounting for Rs. 78,188 crores, out of which 1.7 crore admissions occurred in 2023, which accounted for Rs. 25,000 crores.
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By type, the technical medical third-party institutions segment dominated the third-party medical institutions market in 2023. These institutions provide various services in the medical industry but services are not directly related to healthcare. The services include maintenance & calibration of medical equipment, technical support, and data analysis. Such institutions are in high demand because they reduce healthcare costs by maintaining equipment and other functions.
By type, the clinical medical third-party institutions segment is expected to grow at the fastest rate during the forecast period. These institutions are becoming popular as they provide specialized clinical services. Services provided by these institutions include medical testing, clinical trials, data analysis, and specialized medical procedures. They play a crucial role in providing support to hospitals to improve the quality of care.
By application, the hospital segment held the largest share of the market in 2023. Many patients visit hospitals daily, and many tests are conducted daily to diagnose diseases and develop proper treatment options. It becomes hectic for hospital staff to handle everything on their own, and hospitals collaborate with third-party institutions to run tests, analyze data, and provide treatments.
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October 2024
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Deepa has certified the degree of Master’s in Pharmacy in the Pharmaceutical Quality Assurance department from Dr D.Y. Patil College of Pharmacy. Her research is focused on the healthcare industry. She is the author or co-author of four Review Articles, which include Solid dispersion a strategic method for poorly soluble drugs and solubility improvement techniques for poorly soluble drugs, Herbal Drugs Used In Treatment Of Cataracts, Nano sponges And Their Application in Cancer Prevention and Ayurvedic Remedies of Peptic ulcer. She has also published a Research Article on the Formulation and Evaluation of Mucoadhesive Tablets of Miconazole cocrystal which was published in GIS Science Journal Volume 9 Issue 8. Her passion for secondary research and desire to take on the challenge of solving unresolved issues is making her flourish is the in the research sector.