Global Primary Healthcare Services Market Outlook, 2031

The global primary healthcare services industry covers the delivery of first-contact, continuous and comprehensive medical care by providers such as general practitioners, family physicians, internists, paediatricians, nurse practitioners and physician assistants, working in general practices, family medicine clinics, community health centres, retail and urgent care clinics, employer clinics, virtual primary care platforms and home-based primary care programmes. Services include routine check-ups, diagnosis and treatment of common illnesses, management of chronic conditions such as diabetes, hypertension and asthma, preventive services and vaccinations, mental health care, minor procedures and referral and coordination with specialists and hospitals. The market is served by independent practices and by increasingly large corporate organisations. In the United States, major providers include UnitedHealth Group's Optum, CVS Health's Oak Street Health and MinuteClinic, Humana's CenterWell, Amazon One Medical, Privia Health, agilon health, ChenMed, Iora Health, now part of One Medical, and federally qualified health centres, while in Europe and elsewhere national health services, GP partnerships and chains such as Ramsay and private clinics in India, the Middle East and Latin America play major roles. Revenue comes from fee-for-service payments, capitation, value-based contracts, subscriptions and direct payments.

The business of primary care has changed substantially since 2020. Telehealth expanded rapidly during the pandemic and remains an important channel, and consumer-oriented models, including subscription and virtual-first primary care, attracted investment. Large companies bet heavily on primary care: Amazon bought One Medical in 2023, CVS acquired Oak Street Health for about USD 10.6 billion in 2023 and Walgreens invested in VillageMD, while value-based primary care companies focusing on Medicare Advantage patients, such as agilon health, Oak Street and ChenMed, expanded. Several of these strategies struggled after 2023. Walmart closed all of its Walmart Health centres in April 2024, Walgreens wrote down VillageMD and closed many clinics, and rising medical costs and changes to Medicare Advantage risk adjustment squeezed value-based providers, causing some to exit markets and restructure. Medicare's 2027 Advantage rate announcement in April 2026, which raised payments by about 5% including risk score trends after an initially flat proposal, eased some pressure. In England, the 10 Year Health Plan published in July 2025 introduced new neighbourhood contracts for GPs from 2026 and neighbourhood health centres. Across markets, primary care faces physician shortages, burnout and administrative burden, driving rapid adoption of AI documentation tools, team-based care and expanded roles for nurses and pharmacists.

Market Dynamics Market Drivers • Chronic Disease Management and Ageing PopulationsMost people with chronic conditions are managed in primary care, and the rising prevalence of diabetes, hypertension, obesity, heart disease and mental health disorders increases demand for regular visits, monitoring and care coordination. Older adults have more conditions and visits, and ageing populations increase the need for primary care services, including home-based primary care for frail patients.
• Value-Based Payment and Consumer ExpectationsPayers increasingly pay primary care providers to manage the total cost and quality of care for their patients through capitation and shared savings, rewarding prevention and reduced hospital use. Medicare Advantage and accountable care organisations in the United States, and capitation models elsewhere, support investment in primary care. Consumers also expect convenient access, digital services and same-day appointments, encouraging new models.

Market Challenges • Physician Shortages and Administrative BurdenShortages of primary care physicians are severe in many countries, with fewer graduates choosing primary care and many physicians retiring or reducing hours. Administrative work, including documentation, prior authorisations and inbox management, contributes to burnout. Long waits for appointments frustrate patients and push them toward urgent care and emergency departments.
• Financial Pressure on Primary Care Business ModelsPrimary care receives a small share of health spending, and fee-for-service payment rates are often low relative to costs. Value-based providers face financial risk when medical costs rise, as occurred in 2024 and 2025, and several retail and corporate primary care ventures closed or scaled back. Building and maintaining clinics, technology and care teams requires substantial investment with uncertain returns.

Market Trends • AI and Team-Based CarePrimary care practices are adopting AI tools for clinical documentation, inbox management, coding, patient messaging and triage, aiming to reduce administrative burden and free clinicians' time. Team-based care, using nurse practitioners, physician assistants, pharmacists, care coordinators, behavioural health specialists and health coaches, expands capacity and supports chronic disease management. England's neighbourhood teams follow a similar approach.
• Hybrid, Virtual and Home-Based Primary CarePrimary care is increasingly delivered through a mix of in-person visits, video consultations, secure messaging and remote monitoring. Virtual-first primary care companies and health system digital front doors offer convenient access, while home-based primary care serves homebound older adults. Amazon One Medical, health systems and insurers combine digital and physical care, and pharmacies and retail locations provide some primary care services.



Segment Analysis General and family practice accounts for the largest share of primary healthcare services, while retail, urgent care, virtual and home-based primary care are growing delivery models. General practices and family medicine clinics, including independent practices, group practices and GP partnerships under national health systems, deliver the largest share of primary care visits and serve as patients' regular source of care. Community health centres, including US federally qualified health centres and public health centres in many countries, serve low-income and underserved populations. Value-based primary care clinics, such as those run by Oak Street Health, ChenMed and CenterWell, focus on older adults in Medicare Advantage and provide intensive, coordinated care. Retail clinics in pharmacies and stores offer convenient treatment of minor illnesses and vaccinations, though several retailers have scaled back. Urgent care centres treat acute conditions without appointments and increasingly offer primary care. Virtual primary care platforms provide ongoing care through video and messaging, often paired with in-person options. Home-based primary care serves homebound patients with complex needs. Employer on-site and near-site clinics provide primary care for employees. Direct primary care and concierge practices charge membership fees in exchange for enhanced access.

Chronic disease management and preventive care account for the largest share of primary care activity, while acute care and mental health services are major and growing components. Chronic disease management, including diabetes, hypertension, heart disease, chronic obstructive pulmonary disease, asthma, chronic kidney disease and obesity, accounts for a large share of primary care visits and spending, and obesity management has grown with the use of GLP-1 medicines prescribed in primary care. Preventive care, including annual wellness visits, vaccinations, cancer screening, cardiovascular risk assessment and health education, is central to primary care's role. Acute care for common illnesses and injuries, such as respiratory infections, urinary tract infections and minor injuries, forms a large volume of visits, often delivered through same-day, urgent care and virtual services. Mental and behavioural health, including depression, anxiety and substance use disorders, is increasingly managed in primary care through integrated behavioural health models. Paediatric primary care includes well-child visits, vaccinations and developmental screening. Women's health services, including contraception and prenatal care, are provided in primary care. Care coordination and referral management connect patients with specialists and hospitals. Minor procedures, such as skin biopsies and joint injections, are performed in primary care settings.

Physician-owned and hospital-owned practices provide the majority of primary care services, while insurer-owned, corporate and investor-backed providers have gained a growing share. Physician-owned independent practices remain important in primary care, although their share has declined in the United States as physicians join larger organisations for administrative support, technology and bargaining power. GP partnerships in the UK are the traditional model of independent contractors to the NHS. Hospital and health system-owned practices employ many primary care physicians, securing patient referrals and building integrated networks. Insurer-owned and corporate providers, including Optum, CVS's Oak Street Health and MinuteClinic, Humana's CenterWell and Amazon One Medical, have become major primary care employers, integrating care with insurance, pharmacy and digital services. Private equity and venture-backed primary care companies, including value-based care enablers such as agilon health and Privia, partner with physician groups to take on risk contracts. Public and community providers, including community health centres, public health clinics and national health service facilities, serve large populations. Non-profit organisations deliver primary care in underserved areas. Retail companies have retreated from primary care, with Walmart exiting in 2024.

Fee-for-service payments remain common, while capitation and value-based payments account for a growing share of primary care revenue, especially in Medicare Advantage and national health systems. Fee-for-service payments, in which providers are paid for each visit or service, remain common in the United States commercial market, traditional Medicare and many private markets, but they encourage volume rather than outcomes and often undervalue primary care. Capitation, in which providers receive a fixed amount per enrolled patient, is used in the UK's NHS general practice contracts, many European countries and Medicare Advantage arrangements, giving providers flexibility to invest in prevention and care coordination. Value-based payments, including shared savings, pay-for-performance and full-risk arrangements through accountable care organisations and Medicare Advantage, reward quality and cost control, and CMS models such as ACO REACH have encouraged primary care providers to take on risk. Subscription and membership fees, used by direct primary care, concierge practices and some virtual providers, form a smaller segment. Out-of-pocket payments are significant in countries with limited coverage. Employer contracts pay for workplace clinics. The balance of payment models strongly shapes the business strategies of primary care organisations.

Regional Analysis North America leads the primary healthcare services market by value because of high US spending and extensive corporate investment in primary care, while Europe has strong GP-led systems and Asia-Pacific is the fastest-growing region. North America, led by the United States, accounts for the largest share of primary healthcare services spending. The US market features independent practices, hospital-owned networks, community health centres and corporate providers such as Optum, CVS, Humana and Amazon One Medical, with value-based primary care focused on Medicare Advantage. The closure of Walmart Health in 2024, the retreat of Walgreens' VillageMD and financial pressure on value-based providers in 2024 and 2025 showed the challenges, while the higher-than-proposed 2027 Medicare Advantage rates announced in April 2026 eased pressure. Canada faces a severe shortage of family doctors, with millions of residents without one. Europe has strong primary care systems led by general practitioners, and England's 10 Year Health Plan introduces neighbourhood contracts and health centres from 2026, while Germany, France, the Netherlands and Nordic countries face GP shortages and are expanding team-based care. Asia-Pacific is the fastest-growing region, with rising private primary care in India, including clinic chains and telemedicine platforms, China's expansion of community health centres and family doctor services, and mature systems in Japan, Australia and South Korea. Latin America has large public primary care programmes, such as Brazil's Family Health Strategy, and growing private clinic chains in Mexico, Colombia and Chile. The Middle East is expanding primary care networks through public investment and privatisation, particularly in Saudi Arabia and the UAE.

Key Developments April 2026: CMS finalised a 2.48% increase in Medicare Advantage payments for 2027, about 5% including risk score trends, easing financial pressure on value-based primary care providers after a nearly flat proposal.
November 2025: CMS finalised a 2026 payment increase for physician services, including primary care visits, while introducing an efficiency adjustment for many procedures.
July 2025: The UK government announced new single and multi-neighbourhood provider contracts from 2026 and neighbourhood health centres to expand primary and community care.
April 2024: Walmart announced the closure of all 51 Walmart Health centres and its virtual care service, exiting primary care.
May 2023: CVS Health completed its acquisition of Oak Street Health, a value-based primary care provider for Medicare patients, for about USD 10.6 billion.
February 2023: Amazon completed its USD 3.9 billion purchase of One Medical, combining in-person and virtual membership-based primary care.

Considered in this report
• Historic Year: 2020
• Base Year: 2025
• Estimated Year: 2026
• Forecast Year: 2031

Aspects covered in this report

• Global Primary Healthcare Services Market with its value and forecast along with its segments
• Various drivers and challenges
• Ongoing trends and developments
• Top profiled companies
• Strategic recommendation

By Care Setting
• General and Family Practices
• Community Health Centres
• Value-Based Primary Care Clinics
• Retail and Urgent Care Clinics
• Virtual Primary Care
• Home-Based Primary Care

By Service
• Chronic Disease Management
• Preventive Care
• Acute Care
• Mental and Behavioural Health
• Paediatric Care

By Ownership
• Physician-Owned Practices
• Hospital and Health System-Owned
• Insurer and Corporate-Owned
• Public and Community Providers

By Payment Model
• Fee-for-Service
• Capitation
• Value-Based Payments
• Subscription and Direct Payments