6 Healthcare Insights from Q4 2024 and What They Mean for You

Healthcare data reveals a stabilizing industry for physician practices as patient visits and consumer spending have reached consistent levels, suggesting steady demand. However, declining online searches by prospective patients highlights the importance of patient retention over digital discovery. While physician job postings have leveled off, the ongoing labor market competition for staff drives wage pressures higher for practices, requiring strategic financial planning to stay competitive.

Heading into next year, here are the top six takeaways the healthcare industry should keep in mind.

1. Patient visits reach new equilibrium levels

Patient visit data, excluding flu cases, is trending upward. Over recent months, there has been a consistent increase in the 12-month average, with a slight but steady rise in the linear trend line. Despite seasonal fluctuations, patient visits per provider have shown resilience, bouncing back after each dip.

Patient Visits

Key takeaway: The steady growth in patient visits indicates that demand for in-office care is sustaining a reliable level. For physician offices, this trend supports a stable forecast for staffing and resource planning. With patient numbers reaching new equilibrium levels, it’s an opportune moment to focus on operational efficiencies, such as optimizing appointment scheduling and enhancing patient experience, to retain this base and encourage word-of-mouth referrals.

2. Stabilization in consumer spending on health-related items

Recent data on consumer spending shows subtle year-over-year changes across both pharmacies and drug stores, as well as health and personal care stores. Following a highly volatile period during 2020 and 2021, growth rates have now stabilized, showing modest but consistent positive percentages over the last several months. This steadying effect suggests that spending habits in these sectors are returning to more predictable, baseline levels.

Consumer Spending

Key takeaway: The stability in consumer spending on health-related items indicates a likely return to regular spending patterns among patients. For physician practices, this trend could mean that patients may be more inclined to maintain compliance with prescriptions and their regular visits and follow-up appointments. Practices could benefit from focusing on promoting preventative care services and maintaining consistent communication with patients about the value of routine visits to prevent health issues, as patients seem ready to invest in their health steadily.

3. Online searches for primary care decline to pre-pandemic levels

Google search data for “primary care near me” has declined significantly from pandemic-era peaks. Following a steady rise in 2020 and 2021, interest levels have trended downward over the past two years, with the three-month average now approaching pre-pandemic levels. This shift suggests that fewer people are actively seeking primary care providers online compared to the initial pandemic recovery period.

Google Trends: “Primary Care Near Me”

Key takeaway: This decline in search interest could reflect a normalization of interest in primary care services to pre-pandemic levels. For physician offices, this trend emphasizes the importance of patient retention strategies and referrals over digital outreach alone. Investing in patient satisfaction, building strong patient-provider relationships, and leveraging patient referral networks could be more effective than relying solely on online discovery through search engines.

4. Job postings for physicians stabilize after pandemic surge

The recent trend in job postings shows a notable stabilization after a period of sharp increases, particularly for physician and surgeon positions. After peaking during the height of the pandemic, job postings have gradually normalized, though the postings for physician and surgeon roles remain slightly elevated compared to national job posting trends.

Indeed Job Postings: Physicians and Surgeons

Key takeaway: The stability in job postings, especially for physicians and surgeons, suggests that hiring demand has leveled off after the surge of the past few years. For physician offices, this means that competition for hiring might be less intense than at the pandemic’s peak but still higher than pre-2020 levels. Practices should consider maintaining competitive compensation and benefits packages and fostering a positive workplace culture to attract and retain talent, as demand for qualified medical professionals remains resilient.

5. High job openings and improved retention in healthcare labor market

Healthcare job openings, quit rates, and hires highlight a complex labor market. While job openings remain elevated, quit rates have declined, and hires have shown steady improvement. This suggests that while demand for healthcare workers is high, there is a slight easing in turnover as employees are more likely to stay in their roles.

Healthcare Jobs Market

Key takeaway: For physician-owned practices, these trends indicate both opportunities and challenges in staffing. High job openings mean that recruiting skilled professionals remains challenging and competitive, yet lower quit rates provide a positive signal for retention efforts. To retain existing staff, physician offices might benefit from focusing on employee satisfaction initiatives, such as career development and workplace support. Additionally, positioning themselves as stable and desirable workplaces could give them an edge in attracting new hires in a competitive labor market.

6. Wage pressures rising for physician offices amid tight labor markets

Recent data on wage growth highlights varying trends across different sectors. While national and overall healthcare wage growth have been relatively stable, wage growth specific to physician offices has shown more volatility, with a recent uptick following a period of stagnation. This indicates that wage pressures within physician practices may be on the rise as labor markets remain competitive.

Wage Growth

Key takeaway: The increase in wage growth for physician offices suggests that practices may need to budget for higher labor costs in the near future. For physician-owned practices, this trend underscores the importance of strategic financial planning to accommodate wage increases while managing operating costs. Competitive compensation is critical in retaining staff and attracting new talent. Physician-owned practices should consider balancing wage adjustments with other benefits, such as flexible hours or professional development, to offer a comprehensive and appealing employment package.

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