Industry Analysis & Industry Trends
The Hospitals industry experienced somewhat softened demand during the recession as insurance coverage rates and disposable income decreased. However, healthcare reform is expected to result in more people with insurance, which will drive demand for hospital services and reduce the number of uninsured patients treated by industry operators. Additionally, rising service prices and cost-cutting efforts such as the implementation of electronic health records systems will likely boost profit margins in the next five years. However, healthcare reform may also have the long-term effect of driving patients out of the industry altogether, as less expensive alternatives to hospital care become more popular... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Hospitals industry are high due to the significant regulatory requirements and the experience and strength of incumbents.
Licensure, accreditation and regulation
Medical licensure creates a barrier to entry in the healthcare sector. Operators must meet extensive federal, state and local laws and regulations when establishing and operating hospitals. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures. Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly to enter the industry... purchase to read more