UBS Group AG analysts led by Andrew Mok have attributed the recent surge in healthcare utilization rates to an unexpected source: pickleball. According to a note released on Monday, the firm estimates that pickleball injuries could cost Americans between $250-500 million in 2023.
What Happened: Earlier this month, shares of major health insurance companies, including UnitedHealth Group Inc. UNH, took a hit after the company warned of increased healthcare utilization rates. UnitedHealth noted a higher-than-expected rate of hip replacements, knee surgeries, and other elective procedures. UBS analysts now suggest that the booming sport of pickleball could be a contributing factor to this trend, Bloomberg reports.
The analysts used a 2021 study titled “Non-fatal senior pickleball and tennis-related injuries treated in United States emergency departments, 2010-2019” by Harold Weiss, Jacob Dougherty, and Charles DiMaggio, and a 2020 study in the Journal of Emergency Medicine titled “Pickleball-Related Injuries Treated in Emergency Departments” by Mathias B. Forrester to estimate that pickleball players visit emergency departments at a rate of about 0.27%. The most common injuries are strains, sprains, and fractures, primarily affecting the wrist and lower leg.
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Why It Matters: The sport of pickleball has seen a significant surge in popularity in recent years, with a 150% increase in players expected this year, bringing the total to 22.3 million. As previously reported, even Bill Gates, co-founder of Microsoft Corporation MSFT, has been a fan of the sport for over 50 years. The sport has also attracted retired professional athletes and has seen investment from celebrities like LeBron James, Tom Brady, and Gary Vee.
However, the increasing popularity of the sport and the associated rise in injuries could pose a significant financial burden. UBS estimates that the total medical costs related to pickleball could reach $377 million, with $302 million (80%) attributable to the outpatient setting and $75 million (20%) to the inpatient setting.
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