Vital Signs: 2025 Healthcare Update

Robust Growth in Outpatient Services Growth in all outpatient services will total 11% in the next five years.

GROWTH DRIVERS

• Outpatient endocrinology services, particularly those focused on diabetes, glucose monitoring and diabetes management, are expected to experience the highest growth over the next five years. As the population ages, the prevalence of diabetes — driven by sedentary lifestyles and unhealthy diets — is projected to increase significantly, increasing demand for these services. Additionally, high obesity rates in the U.S. continue to drive demand for endocrinology services 1 . However, the rise of GLP-1 (glucagon-like peptide 1) medications could reduce long-term needs as expanded Medicaid and Medicare coverage 2 makes these treatments accessible to a broader population. • The growing focus on mental health and wellness is expected to increase the need for additional outpatient psychiatry services. However, the widespread adoption Obstetrics services are expected to decline further over the next five years, driven by rising insurance premiums, low reimbursement rates, fewer medical students specializing in obstetrics and a declining national birth rate. Gaps in obstetric outpatient services will significantly impact rural communities as many rural hospitals discontinue their obstetrics services. 1. https://www.nytimes.com/2024/11/14/well/obesity-epidemic america.html 2. https://www.bloomberg.com/news/articles/2024-11-26/biden proposes-medicare-and-medicaid-coverage-of-obesity drugs?srnd=homepage-americas of telehealth by behavioral health practitioners is reshaping the overall footprint of this service line.

Five-Year Growth (2023-2028) Top 10

Endocrinology

25.3%

Psychiatry

19.0%

Spine

17.0%

Vascular

14.8%

Physical Therapy/Rehabilitation

14.8%

Cardiology

13.8%

Ophthalmology

13.7%

Orthopedics

12.4%

ENT

12.3%

Lab

12.3%

All Services

11.0%

Pulmonology

-0.6%

Obstetrics

-8.2%

-15%

-5%

5%

15%

25%

35%

Source: Advisory Board, Cushman & Wakefield Research

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