Insight

Cardiology M&A update

U.S. Cardiology Market at a glance

Walter Olshanski

Walter Olshanski

Managing Director, KPMG Corporate Finance LLC

+1 646-874-4878

Strong sector tailwinds and expansion dynamics signal ‘hearty’ growth opportunities for cardiology practices in the U.S.

  • The cardiology physician market in the U.S. generates approximately $51 billion annually, and is expected to grow at a CAGR of 2.3 percent between 2020 and 2025.(1)
  • Internal medicine subspecialties (including cardiology), often treat conditions associated with age, for which demand remains robust as the U.S. population ages.
    • The number of adults aged 65 and older is projected to increase from approximately 48 million to over 80 million by 2050.(2)
    • Adults over the age of 60 years contribute to approximately 89 percent of cardiology practice revenue(1)
  • Underlying medical conditions increasing the prevalence of heart diseases include diabetes, hypertension, and obesity.
    • An estimated 88 million adults have prediabetes.(3)
    • The prevalence of obesity was 42.4 percent in 2017-2018.(4)
    • Nearly 108 million U.S. adults have hypertension.(5)
  • As of March 2020, there were 33,055 active number of cardiologists in the U.S.(6)
    • As demand for cardiology services is growing and a large number of active cardiologists are nearing retirement, the estimated deficit of cardiologists in the U.S. is expected to reach 7,080 physicians, by 2025.(7)
  • Most recently, the specialty has witnessed an increasing trend towards the provision of cardiovascular procedures in the outpatient setting, particularly in ASC’s.
    • This trend is largely driven by CMS’s ruling finalizing the addition of multiple cardiovascular CPT codes to the list of covered ASC surgical procedures.
    • This is further supported by lower costs of procedures in outpatient facilities and advancements of outpatient technologies.

Cardiology quick facts(9),(10)

805,000

Americans have heart attack
every year

108 million

People with high blood 
pressure

38.2%

American adults had total cholesterol of 200 mg/dl or higher

$214 billion

annual cost to the health 
care system


Fragmented cardiology practice market in the U.S.(8)

Physician generated average revenue vs. average salary(11)

 




Cardiovascular surgeons, invasive cardiologist and non-invasive cardiologists generate 8.7x, 5.9x, and 5.4x of their respective salaries

Product and service segmentation(1)

 


⇨$50.9 billion

(2020 revenue)

Footnotes

Sources:

  1. IBISWorld industry report, “Cardiologists” (March 2020);
  2. U.S. Census Bureau (April 2019);
  3. CDC, “National Diabetes Statistics Report” (February 2020);
  4. CDC, “Adult Obesity Facts” (February 2020);
  5. CDC, “Facts About Hypertension” (February 2020);
  6. Statista, “Number of active physicians in the U.S. 2020 by specialty area” (June 2020);
  7. Merritt Hawkins, “2019 Review of Physician and Advanced Practitioner Recruiting Incentives” (July 2019);
  8. Active practices with at least 1 physician and main specialty of cardiology per Definitive Healthcare (June 2020);
  9. CDC, “Division for Heart Disease and Stroke Prevention At A Glance” (April 2020);
  10. Heart Disease and Stroke Statistical Update Fact Sheet At-a-Glance (2020);
  11. Merritt Hawkins, “2019 Physician Inpatient/Outpatient Revenue Survey” (February 2019).


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