Industry Analysis & Industry Trends
Demand for specialty hospitals will continue to rise over the next five years, driven by an aging population and new technologies. While fluctuating Medicare reimbursement rates and a shortage of skilled healthcare personnel will hamper profitability, the industry has proven to be resilient. As a result, revenue will experience steady growth over the period... purchase to read more
Industry Report - Industry Investment Chapter
The Specialty Hospitals industry has a low level of capital intensity. For every $1.00 spent on labor in the industry, about $0.11 is spent on capital. Labor costs account for 37.9% of total hospital revenue, whereas depreciation expenses represent about 4.0%. The industry is highly dependent on skilled labor (i.e. physicians, surgeons and nurses) to provide services. Although the industry is labor-intensive, the use and cost of technology is increasing. Medical device and appliance manufacturers are constantly developing new equipment that hospital operators are pressured, mostly by competitors, to implement. Although expenditure on high technology equipment is increasing, there is also a rise in patient acuity, which pushes up staff-to-patient ratios... purchase to read more