Health care consulting industry is enjoying boom times

As health professionals seek more and more outside business advice, experts caution doctors to choose carefully because literally anybody can become a consultant.

By Katherine Vogt, AMNews staff. May 8, 2006.

Just as demand for health care services has increased in recent years, so has demand for advice about those services.

The health care consultant industry is in the middle of what one report says is a striking growth period, with an 8.5% estimated compound annual growth rate from 2004 to 2009, according to a new report from Kennedy Information, which provides research about different professional services.

The Peterborough, N.H.-based company's report on the health care consulting marketplace says the cash value of industry services will jump from $17.3 billion in 2004 to $26.6 billion in 2009.

The statistics reflect growth among consultants serving all facets of health care, including insurance and pharmaceutical industries, but experts say there is a surge among consultants who help physicians as well.

To physicians, the boom means more choices to draw from when seeking consultants and more specialized expertise. There is little evidence that the cost of those services will change significantly, though certainly a competitive market could lead to competitive prices.

If nothing else, knowing that there are more consultants offering advice can give physicians some reassurances as they embark on new projects.

"It gives me peace of mind, and I've learned from good experience that when there's a significant decision to be made and a significant buy-in from the practice, having a good consultant on board legitimizes what we're trying to do," said Robert W. Yelverton, MD, chief executive and medical director of Tampa Bay Women's Care, which has 66 ob-gyns in the Tampa, Fla., area.