Demand for fertility care services is at an all-time high as a result of four key drivers: an increased awareness of services, shifts in cultural perspectives around infertility, higher rates of chronic health conditions impacting fertility, and changes in reimbursement and employer benefit trends. As shown below, there is strong growth potential forecasted for the fertility market, spawning organizations to consider significant investments to improve access to fertility care.
In part two of our three-part blog series on fertility care, we will first summarize the major opportunity areas in the fertility care space, and then discuss the key market trends highlighting current organizational approaches to funding and executing on these investments.
Opportunities for Investment
In 2022, the value of the US fertility market was estimated to be $7.9 billion. This value is projected to more than double in six years, growing to $16.8 billion by 2028. This extreme growth presents a major opportunity for investors, including healthcare providers, private equity (PE) firms, start-ups, and the creators of related supplies and equipment, to continue pursuing innovations in fertility care. By supporting initiatives that remove barriers to care, these investors can spearhead positive change in the industry and provide a competitive advantage to organizations looking to diversify women’s health services.
The table below outlines common barriers patients face in accessing fertility care and the related opportunities that should be considered by groups looking to invest in the success and sustainability of their women’s health practice.
Investment Market Trends
To execute on the opportunities above and better serve their patients, organizations are accessing capital and expanding their partnerships via innovative approaches, as demonstrated by five key market trends.
- Consolidation in the Market: Independent clinics are either being acquired or affiliating themselves with larger organizations at a rapid rate. Partnering with a larger institution can provide economies of scale and the necessary capital to invest in the clinic and its patients.
- Funding from PE Firms: In 2018, 15% of practices listed on the CDC’s Fertility Clinic Success Rates Report were affiliated with a PE firm. This number only continues to rise, generating additional opportunities for innovation and growth. The capital provided by PE firms allows fertility clinics to execute on key business strategies that will improve their market share, such as purchasing state-of-the-art equipment, providing benefits to attract skilled employees, and increasing marketing spend. Patients also reap the benefits of this capital through optimized operations (e.g., advanced technologies, standard care pathways, flexible payment plans).
- Employer Benefits: The number of organizations incorporating fertility diagnostic testing and treatment into their standard employee benefits packages has been steadily increasing over the past 10 years. Over 42% of large-scale organizations and 27% of smaller-scale organizations have incorporated IVF as a medical benefit as of 2020. With coverage being crucial for increasing patient access to fertility services, there is an opportunity for employers to partner with payers to negotiate networks that include these services.
- Investment by Start-Ups: In 2021, venture capitalists raised $345 million—a 35% increase from 2020—to invest in fertility care start-ups. Investors have financed a wide range of services provided by start-ups, including fertility testing kits, sperm and egg freezing services, cycle tracking, and assistance for employers looking to enhance their fertility benefits. This increasing investment will only continue to drive improvements to existing care pathways and enable the integration of innovative services that double as market differentiators.
- Third-Party Services: Third-party services aim to improve outcomes, drive lower spend, and improve the patient experience. One such example is third-party payer clearance services focused on fertility coverage administration, which employers are increasingly calling on to improve the coverage administration experience for employers, health plans, and patients. In addition, third-party coaching services play a vital role in fertility treatment by offering therapeutic and educational support for individuals and couples.
Women’s Healthcare Is a Continuum. Invest Accordingly.
Health systems have the opportunity to serve their patients across the whole spectrum of women’s health, from fertility care to menopausal medicine, by investing strategically in innovative solutions. Health systems must ensure they have a comprehensive women’s health strategic plan and ensure operational effectiveness to attract and retain patients across the continuum; this ultimately promotes financial sustainability and growth.
Look out for the final installment of our blog series, where we will address key components of providing patient-centric fertility care.
Considering diversification or expansion into fertility care? ECG can partner with you to strategize.
Editor: Emily Johnson
¹ “US Fertility Clinics Market to 2028: Increasing Awareness of Fertility Treatments Drives Growth.”
² 2021 National ART Summary, CDC.
Published August 14, 2024
