20 Statistics About the US Gastroenterology Market

Vertical: Gastroenterology
Author: JC Lupis
Date: July 2021

Download the stats in PDF format here.

Gastroenterology: An Active and Maturing M&A Market

Gastroenterology is one of the most active sectors in healthcare provider mergers and acquisitions (M&A). Acquisitions by private equity (PE) firms and PE-backed companies have surged as these outfits form platform groups and acquire physician practices. Even so, the market remains fragmented, with one estimate suggesting that almost half of states lack any practices with more than 20 physicians.

PE firms and strategic acquirers are attracted to the multiple ancillary revenue sources enjoyed by gastroenterology practices, such as pathology, ambulatory surgery centers (ASCs), and anesthesia. Meanwhile, an aging population portends growing demand for gastroenterological services, and broader awareness of the benefits of early colorectal screening indicates that demand for services will also increase among younger populations.

Providers

1. There are approximately 1,800 practices in the US listing gastroenterology (GI) as their primary specialty.

2. As of 2019, there were 15,469 active gastroenterologists in the US.

3. There were 1,755 active gastroenterology (internal medicine) residents in 2019-2020.

4. From 2014 to 2019, the number of active gastroenterologists in the US grew by 10.0%, compared to 9.6% for all specialties.

5. 81.1% of gastroenterologists in 2019 were male, well above the 63.7% recorded for all specialties.

6. Gastroenterologists reported an average salary of $406K in 2020, down from $419K in 2019.

7. Gastroenterologists estimate spending an average of 15.2 hours per week on paperwork and administration.

8. Some 50% of surveyed gastroenterologists participate in the Merit-based Incentive Payment System (MIPS).

9. Approximately 61% of gastroenterology practices have 3 or fewer physicians and 5% have 20 or more physicians.

10. It is estimated that approximately 1,000 gastroenterologists are employed under some type of private equity model.

Sources: Definitive Healthcare, Association of American Medical Colleges, Medscape, NextServices

Practice Data

11. Gastroenterologists report seeing an average of 69 patients per week, a slight decline from 76 patients per week reported prior to the onset of the COVID-19 pandemic.

12. Among single-specialty ASCs in the US, GI ASCs made up the largest share with 1,082 (21%) in 2019, up 2.2% from the 2014 total of 1,059.

13. GI cases accounted for 29% of all case volume in ASCs in 2017, with median net revenue per case of $1,004.

14. Gastroenterologists average about $3.0M in net annual hospital revenue per physician.

15. Adjustments by CMS to the 2021 Medicare Physician Fee Schedule are expected to reduce gastroenterologists’ Work RVUs and reimbursements by 3% and 4% respectively.

Sources: Medscape, MedPAC, VMG Health Intellimarker, Merritt Hawkins, VMG Health

Private Equity and Consolidation Trends

Please download our deck here for statistic numbers 16-20, which contain information on the private equity-backed gastroenterology platforms in the US as well as the number of gastroenterology mergers and acquisitions in 2020 and Q1 2021.

Sources: GHA Research, ENT and Allergy Associates, GHA M&A Database

Download the stats in PDF format here.

For more information, please contact GHA Managing Director JC Lupis at jclupis@ghadvisors.net.