Vital sign: Revenue will continue to grow alongside the aging population and increasing number of people with health insurance

As a primary provider of healthcare in the United States, revenue for the Hospitals industry is expected to grow over the five years to 2017. This traditionally fragmented industry has recently begun consolidating, largely due to the pressures of healthcare reform. Demand for industry services has steadily grown over the past five years, as healthcare reform legislation broadened insurance coverage and the sinking unemployment rate increased disposable income. As the Patient Protection and Affordable Care Act (PPACA) continues to increase the number of insured Americans, demand for industry services will likely continue to increase and the number of uninsured patients that hospitals treat will drop...read more.

Industry Statistics & Market Size
Revenue
$1tr
Annual Growth 12-17
3.0%
Forecast Growth 17-22
Profit
Employment
5.4m
Businesses
5,620
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Industry profitability has generally risen over the past five years due to increases in service prices
  • Hospitals are consolidating to reduce costs and improve negotiating power with suppliers and payers
  • Industry-wide adoption of electronic health record systems is expected to both help and hurt the industry
  • Industry Report - Industry Key Buyers Chapter

    Despite widespread consolidation in recent years, the Hospitals industry remains fragmented. No player accounts for more than 5.0% of industry revenue, and the four largest companies combined are estimated to account for 9.9% of industry revenue in 2017. Hundreds of providers of various sizes are spread throughout the country and concentrations vary among geographic markets. For example, Hospital Corporation of America, concentrated in Florida and Texas, holds 20.0% to 40.0% market share in most of the areas in which it operates. Universal Health Services seeks leadership in growth markets and concentrates on medium-size cities with populations of up to 500,000 people, avoiding larger cities with many competitors. Com...purchase to read more.

    Additional Insights for the Hospitals Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hospitals Industry are

  • Access to highly skilled workforce
  • Proximity to key markets
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Medicaid and Number of people with private health insurance in the Hospitals industry impact industry performance..

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    What is the Hospitals Industry?

    This industry includes operators licensed as general medical and surgical hospitals that provide surgical and nonsurgical diagnostic and medical treatment to inpatients. Hospitals maintain inpatient beds and usually provide other services, including outpatient, operating room and pharmacy services. The industry excludes psychiatric and other specialty hospitals.

    Industry Products
  • Inpatient care
  • Outpatient care
  • Industry Activities
  • Inpatient care
  • Outpatient care
  • Anatomical pathology services
  • Diagnostic X-ray services
  • Clinical laboratory services
  • Operating room services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Number of people with private health insurance
  • Number of adults aged 65 and older
  • Per capita disposable income

  • Current Performance
  • Healthy revenue and profit
  • Consolidation and reform
  • Consolidation
  • Physician and nurse shortage
  • Chart: Revenue Growth

  • Industry Outlook
  • Effects of reform
  • Acquisitions and employment
  • Table: Hospitals Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hospitals Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Health & Welfare Funds
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Diagnostic & Medical Laboratories
  • Food Service Contractors
  • Janitorial Services
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling
  • Primary Care Doctors
  • Psychologists, Social Workers & Marriage Counselors
  • Specialist Doctors
  • Waste Collection Services

  • Products & Services
  • Inpatient care
  • Outpatient care
  • Chart: Hospitals Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private insurance
  • Government insurance
  • Nonpatient care revenue
  • Other
  • Out-of-pocket payments
  • Chart: Major Market Segmentation for the Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesProvision for doubtful accountsOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Hospitals

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hospitals Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hospitals Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hospitals Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of physician visits (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Circulatory System
  • The system that moves blood throughout the body, including the heart, arteries, capillaries and veins.
  • Critical Access Hospital (Cah)
  • A small facility that gives limited outpatient and inpatient hospital services to people in rural areas. CAHs must meet Medicare requirements.
  • Disproportionate Share Hospital
  • Hospitals that treat a disproportionate number of uninsured patients; under Medicaid, these hospitals are entitled to federal compensation.
  • Electronic Health Record (Ehr)
  • The systematic collection and maintenance of electronic health information about an individual patient.
  • Inpatient
  • Admitted patients who stay overnight or longer.
  • Outpatient
  • A patient admitted to a hospital, clinic or associated facility for diagnosis or treatment and released the same day.
  • Teaching Hospital
  • Instruction for medical students combined with assistance to patients and often linked to a medical school.
  • Telemedicine
  • An application of clinical medicine whereby medical information is transferred through interactive audiovisual media for the purpose of consulting and remote medical procedures or examinations.
  • Why buy this report?

    IBISWorld’s Hospitals Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hospitals:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hospitals market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hospitals, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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