The current market size of subscription-based healthcare is approximately $6 million in the United States. It’s projected to grow at a compound annual growth rate (CAGR) of 4.5 percent to reach $7.48 million in 2025.
- The U.S. subscription-based healthcare market size is currently valued at about $6 million. The industry is projected to grow at a compound annual growth rate (CAGR) of 4.5 percent to reach $7.48 million in 2025.
- According to Concierge Medicine Today, a national trade publication, industry experts and observers estimate that growth is “between 3% to 6% each year and has been primarily in the areas of internal medicine and family medicine.”
- American’s are increasingly adopting subscription-based services. According to recent reports, “34% say they plan to increase their number of subscriptions over the next few years.”
- According to the 2018 Survey of American physicians, about 6.6% of respondents stated that they were presently practicing subscription-based healthcare, and an additional 2.4% intended on “transitioning to this model fully, while 9.9% said they would transition in part.”
- The average SaaS churn rate for healthcare subscription providers is roughly 7.5%. “SaaS churn measures the number of SaaS customers who cancel their subscription.”
After thoroughly reviewing industry articles, market research databases, reliable media sites, and medical journals, including IBISWorld, Concierge Medicine Today, Transparency Report, Healthcare Business International, and more — the research team determined that the size of the subscription-based healthcare industry does not exist publicly. While the market of subscription-based healthcare remains small, unexploited, and fragmented; it is growing at a steady pace. Currently, there is a shortage of research into this industry, and statistics around the market size are unavailable in the public domain. However, based on available data from industry experts and observers, we managed to obtain key metrics that enabled us to triangulate the present size of the sector and the projected size in the next five years. To do this, we searched for the top subscription-based healthcare providers in the United States. Concierge Medicine Today, a national trade publication provided this statistic. The publication recognizes the leading subscription medicine services annually, and in 2020, it has provided the year’s top 20 companies. However, this list ranks the providers alphabetically and not by order. As a result, the team searched for the companies financials, including annual reports, proxy statements, SEC Filings, and more, but this was unavailable since these are private organizations, thus are not required to disclose their financials to the public. Therefore, we employed the services of third-party databases, like Crunchbase, Zoominfo, DNB Hoovers, and more, to locate their estimated annual revenues. Based on this strategy, we identified the top five providers by revenue, as shown below.
Top Subscription-Based Healthcare Providers (Est. Revenues)
Diamond Physicians ($5 million — $25 million) ~ $15 million
Campbell Family Medicine ($7 million)
Griffin Concierge Medical ($6 million)
Buckhead Internal Medicine ($1 million — $2 million) ~ $1.5 million
Center for Executive Medicine (CEM) ($0.5 million)
Current Market Size
Taking the revenue of the five providers to estimate the average market size of subscription-based healthcare in the United States = ($1.5 million + $7 million + $0.5 million + $15 million + $6 million) / 5 = $6 million.
Projected Market Size (5 years)
Concierge Medicine Today states that growth in subscription-based healthcare services is estimated to be 3% to 6% each year. Therefore, the market grows at an average of 4.5 percent ((3+6)/2) per year.Using the CAGR calculator, where period (n) is 5 years, starting year (i) is 2020, rate of growth (r) is 4.5 percent, the projected market size (f) is $7.48 millionSources