US Radiology Service Market Analysis

US Radiology Service Market Executive Summary

The US Radiology Service market is at around $1,680 Mn in 2023 and is projected to reach $3,879.5 Mn in 2030, exhibiting a CAGR of 12.7% during the forecast period.

Radiology, also known as diagnostic imaging, is a branch of medicine that uses imaging technology to diagnose, characterize, monitor, and treat diseases. Some of the most common imaging techniques include X-ray, MRI, ultrasound, CT scan and PET scan. Radiology is important as every sector within the healthcare field relies on radiology, including surgery, paediatrics, obstetrics, oncology, emergency medicine, to name a few. Radiology is a broader term composed of diagnostic radiology, interventional radiology, and therapeutic radiology which use radiant energy to diagnose and treat the diseases. Diagnostic radiology involves visualization of the various images of the body for evaluating symptoms, screening of illnesses, and diagnosis of diseases. Diagnostic radiology is usually non-invasive and performed without any incisions or surgical interventions. Interventional radiology is basically image-guided surgery and is used as a part of the medical treatment process. The various procedures under interventional radiology include angiography, angioplasty, embolization, gastrostomy, stent placement, catheter placement, and many more. It is often used to help treat cancer, lymphatic diseases, and vascular abnormalities. Therapeutic radiology is also referred to as radiation oncology or radiation therapy which involves treatment of cancer and other diseases using radiation.

The US faces a heavy burden in the healthcare sector due to the rising chronic diseases prevalence, leading to a change in the quality of life of the citizens. The US Radiology Service Market is thus driven by significant factors such as the increasing burden of chronic diseases, geriatric population, and technological advancements. However, stringent regulatory compliance, radiation exposure concerns, and security challenges restrict the growth and potential of the market.

The major players of the US Radiology Service Market are Massachusetts General Hospital, Brigham and Women’s Hospital, University of Pittsburgh Medical Centre, John Hopkins Hospital, UCLA- Health Ronald Reagan Medical Centre, and Stanford Healthcare, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: Approximately 129 Mn of the total 330 Mn population was suffering from at least one chronic disease as of 2022. As these chronic conditions become more prevalent, the need for early detection, treatment monitoring, and progression tracking increases. Radiology, with its advanced imaging techniques, plays a vital role in all these stages, leading to more frequent use of radiology services and propelling market expansion.

Geriatric Population: Nearly 58 Mn adults age 65 and older lived in the US in 2022, accounting for 17.3% of the nation’s population. The aging population is a significant growth driver for the radiology service market. As people live longer, they are more likely to develop chronic conditions that require regular medical imaging for diagnosis and monitoring. These growing elderly demographic translates to a higher demand for X-rays, CT scans, MRIs, and other radiology procedures, driving the need for expanded services and pushing the market towards continued growth.

Technological Advancements: Hybrid imaging technologies, which merge various imaging modalities, have significantly enhanced diagnostic capabilities and accuracy. By integrating functional and anatomical data, techniques such as positron emission tomography-computed tomography (PET-CT) and magnetic resonance imaging-guided focused ultrasound (MRgFUS) offer more comprehensive information. This approach has proven especially beneficial in fields like oncology, cardiology, and neurology, allowing for precise localization and detailed characterization of diseases. The continuous technological developments in the field of radiology are revolutionary, acting as significant market growth driver.

Market Restraints

Stringent Regulatory Compliance: The Radiology Service Market in the US faces a hurdle in the form of stringent regulatory compliance. These regulations, while crucial for patient safety, can be complex and ever-changing. This necessitates navigating a challenging regulatory landscape for healthcare facilities, requiring investment in staff training and adherence protocols. The associated costs and administrative burden can potentially slow down the market growth by discouraging new entrants and limiting the ability of existing facilities to expand services.

Radiation Exposure Concerns: Imaging tests that use radiation are valuable tool in diagnostics, but exposure to radiation poses some risk. Such concerns negatively affect the expansion of the Radiology Service Market. In the US, about 15% of all imaging tests are computed tomography (CT), but up to 70% of radiation exposure from all imaging tests comes from CT. The radiation dose for CT is much higher than other imaging tests. The exposure risk is higher among certain situations such as during infancy, childhood, pregnancy, and for certain tissues, such as lymphoid tissues, bone marrow, blood, the testes, the ovaries, and the intestine. Although varied and uncertain, the radiation exposure can be harmful which can reduce the demand and the subsequent growth of the Radiology Service Market.

Security Challenges: Medical images are confidential as they contain valuable information for disease diagnosis and treatment. Thus, it is essential to secure their storage, processing, analysis, and transmission without violating ethical and legal issues regarding health information privacy. This is difficult due to the multimedia and communication technologies development, which makes tampering and misuse an easy process. Attaining high security of medical images thus remains a challenge, in technological era, negatively affecting the market.

Regulatory Landscape and Reimbursement Scenario

The United States Food and Drug Administration (USFDA) is a federal agency of the Department of Health and Human Services. The main goal of the USFDA is to protect public health by ensuring the safety and efficacy of drugs, biological products, medical equipment, along with food, cosmetics, and items that emit radiations. The Federal Food, Drug, and Cosmetic Act and several other comparable statutes are enforced by the FDA.

The process of gaining approval of new drugs involve rigorous and cumbersome evaluation by the USFDA. The two divisions of the USFDA, Centre for Drug Evaluation and Research (CDER) and the Centre for Biologics Evaluation and Research (CBER) extensively review applications for approval which makes it challenging for pharmaceutical companies to bring a new product to the market. The various types of applications submitted to the USFDA for getting approval of pharmaceuticals include Investigational New Drug Application (INDA), New Drug Application (NDA), Abbreviated New Drug Application (ANDA) for generic drugs and Biologics License Application (BLA).

Medicare and Medicaid are two of the health insurance programs administered by the US Government, with differences in covered services and cost-sharing. Medicare is a government health insurance program available to Americans 65 years of age or older, as well as to younger individuals with disabilities. Medicaid provides health coverage to low-income families, based on eligibility determined by comparing the income with the federal poverty level. Initially launched in 1965 by the Social Security Administration, the Centres for Medicare and Medicaid Services (CMS) currently oversee its administration. Medicare and Medicaid thus provide financial security and lessen the financial burden of healthcare and provides better outcomes for beneficiaries.

Competitive Landscape

Key Players

Here are some of the major key players in the US Radiology Service Market:

• Massachusetts General Hospital
• Brigham and Women’s Hospital
• University of Pittsburgh Medical Centre
• John Hopkins Hospital
• UCLA- Health Ronald Reagan Medical Centre
• Stanford Healthcare
• Northwestern Memorial Hospital
• Vanderbilt University Medical Centre
• Cleveland Clinic
• Sanford USD Medical Centre