Direct Primary Care: A Growing Market

The rapidly rising cost of healthcare has created challenges for employers seeking to provide healthcare coverage for their employees. In search of solutions, employers are looking beyond traditional health plans to find ways to reduce costs and give employees a better healthcare experience. Hint Health Data Analytics reports that thousands of employers have turned to direct primary care (DPC). Their data show that:

• Employers sponsors offering a DPC benefit increased by 800% from 2017 to 2022

• 49% of all DPC memberships in 2022 were employer-sponsored

• The proportion of memberships that were employer-sponsored increased by 133% between 2017 and 2022

• 79% of working age adults surveyed are "very" or "somewhat likely" to use DPC if offered by their employer

• Since 2019, the proportion of DPCs who work with employers has remained steady at 45%

• 25% of DPC practices working with employers received a portion of their employer-sponsored memberships through DPC networks.

The financial benefits of DPC for employers are significant. An independent study from Milliman commissioned by the Society of Actuaries in 2020 showed that compared to employees in a traditional health plan, employees enrolled in DPC had:

• 40% fewer emergency room visits

• 53% lower emergency room spend

• 20% fewer hospitalizations

• 8% lower inpatient spend

• 5% lower outpatient surgery cost, and

• 12.6% lower overall claim cost.

Straits Research estimates the global DPC market was valued at USD 61.34 billion in 2024. It projects a 5.15% compounded average growth rate during the 2025 through 2033 forecast period for the industry. Straits Research commented that, " [a] major driver of the global [DPC} market is the growing demand for personalized and accessible healthcare services. Patients increasingly seek longer consultations, direct communication with physicians, and preventive care, features that DPC offers without the constraints of insurance billing." In a 2023 survey by the American Academy of Family Physicians (AAFP), 9% of family physicians reported operating a DPC practice, up sharply from just 3% in 2022 and 5% in 2021. In another AAFP survey, 11% of physicians in 2023 were either already in a DPC practice or transitioning to one (up from 2% in 2022).