Medical professions show healthy growth
The medical professions employ more than 12.5 million people in the United States, providing a payroll of $703.3 million, according to data compiled by GeoLogix. And nearly all businesses in the sector are growing, with the exception of dentists and dental labs, making them excellent targets for agents with markets that can provide the needed coverages. GeoLogix reports that average growth for the sector is around 2% and is forecasted to remain about the same for the next few years.
Medical offices and clinics represent the largest segment, employing nearly 6.5 million people, followed by offices and clinics of dentists, which employ 2.3 million people. No other segments employ more than one million people.
The study looks at 15 medical SIC segments: offices and clinics of medicine (8011); offices and clinics of dentists (8021); offices and clinics of doctors of osteopathy (8031); offices and clinics of chiropractors (8041); offices and clinics of optometrists (8042); offices and clinics of podiatrists (8043); offices and clinics of health practitioners not elsewhere classified (8049); general hospitals (8062); psychiatric hospitals (8063); specialty hospitals, except psychiatric (8069); medical labs (8071); dental labs (8072); home health care services (8082); specialty outpatient facilities not elsewhere classified (8093); and health and allied service not elsewhere classified (8099).
Medical professions employ some 2.17 million people in the Rough Notes Region 5, with California employing the greatest number at approximately 1.09 million, followed by Washington, with about 270,000. There are pockets of strong growth in several classes and several states, with the exceptions being California, Hawaii and North Dakota, where the growth rates are anemic. The forecast calls for improvement in Hawaii and North Dakota. However, California is expected to remain at a low level of growth. Nevada has the distinction of being the only state in the union where dental offices and clinics show employment growth—substantial growth in this case. Arizona boasts the best growth in the region at 2.9%, followed by Idaho (2.6%) and Utah (2.3%). The forecast calls for eight states to enjoy better than 2.0% growth—Utah (3.4%), Washington (3.1%); Idaho (2.8%), Alaska (2.7%), Arizona (2.6%), Oregon (2.6%), Nevada (2.3%), and Wyoming (2.3%).
The fact that medical professions managed to ride out the economic downturn and remain healthy (pun intended) certainly makes them an attractive exception for agents and brokers to target. It's always nice to have a growing industry in your portfolio to help counter-balance the declines that many businesses continue to experience, to say nothing of the impact of the continued soft market that tends to dampen premium rates even for markets that are growing.
GeoLogix Solutions (www.geologixsolutions.com) is a market data and analytics firm specializing in insurance industry solutions serving the P&C, Life & Annuity, Health & Group Benefits marketspace through strategic alliances including one with Oxxford Insurance Technology. For more information, please contact GeoLogix Solutions at (860) 974-2306 or e-mail firstname.lastname@example.org.