Urology’s Provider Shortage Trend: Finding Solutions for Increasing Demand

Urology is facing provider supply constraints amid the aging population and rising incidence of chronic disease in the United States. The industry will need to find ways to leverage the provider base to meet increasing demand for urology services. The industry is ripe for consolidation, and the ability to expand ancillary service lines is one of the most widely cited drivers of growth and consolidation. Consolidation will allow for leverage of back-office infrastructure, investment in outpatient facilities to drive efficiency, and the ability to leverage technology and physician extenders to meet the demands on the market.

A sharp contrast exists in the geographical location of practicing urologists in the U.S., with only 10% practicing in non-metropolitan areas, leaving a majority (62.2%) of counties without urological care.

The shortage of practicing urologists is expected to exceed 3,600 by 2025.

In the United States, there are more than 13,000 urology providers, 51.2% of whom work in private practice. Nearly 40% (38.6%) of private practices have fewer than three urologists, of which 20.2% are solo practitioners. The imbalance of supply and demand is exacerbated by the aging population of practicing urologists, with 50% over the age of 55. This poses a significant challenge to the industry to continue to meet the surging demand from the aging population and the growing prevalence of urologic conditions. Further, there are fewer students graduating from residency programs in the urology field each year to combat the issue.

How will this and other industry trends shape the urology M&A landscape going forward? BGL’s Healthcare Provider Services investment banking team has released a full report, now available for download; learn more in the BGL Healthcare & Life Sciences Insider: Consolidation to Accelerate in Urology. 

BGL’s Healthcare Provider Services team has the investment banking and capital markets experience to advise clients across a broad spectrum of physician practice M&A, capital markets activities and strategic assignments. To learn more about how we can help with strategies for valuing a physician practice, selling a physician practice or buying a physician practice, as well as other strategies to position you for growth, please reach out via our contact form below.