Taking care: Seniors in need of long-term care will boost demand, but profit will likely fall

In contrast to traditional healthcare facilities, operators in the Specialty Hospitals industry provide specialized care to patients in both large-scale, well-known establishments and small, local clinics. Over the five years to 2018, revenue for this industry has increased in line with an aging population and rising heathcare coverage. This labor-intensive industry has consolidated in recent years as large operators have acquired smaller companies to gain market share and to attract relatively lucrative, privately-insured patients, in particular. Meanwhile, wages have increased during the same period, as consolidation has increased demand for skilled labor...purchase to read more.

Industry Statistics & Market Size
Revenue
$52bn
Annual Growth 13-18
3.6%
Forecast Growth 18-23
Profit
Employment
304,779
Businesses
1,003

Industry Threats & Opportunities

  • Large operators have acquired smaller companies to gain market share and to attract relatively lucrative, privately insured patients
  • Shortages in pediatric specialists have been a chronic problem during the past decade
  • Reform will create powerful incentives for specialty hospitals to form large systems of care
  • Industry Report - Industry SWOT Analysis Chapter

    Despite government bans on new physician-owned establishments, the Specialty Hospitals industry is in the growth stage of its life cycle. Specialty hospitals are not new to the healthcare sector, but they have grown in importance and visibility in recent years, and will likely continue to expand during upcoming years. The value that the industry adds to the overall economy is forecast to increase at an annualized rate of 3.6% over the 10 years to 2023. This outpaces growth in US GDP, which is forecast to increase at an annualized rate of 2.1% over the same period.Demand for specialty hospitals is strongly driven by the aging population, which requires more medical attention, particularly at long-term acute care hospitals and inpatient rehabilitation facilities. IBI...purchase to read more.

    Additional Insights for the Specialty Hospitals Industry

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

  • Access to highly skilled workforce
  • Recommendation/accreditation from authoritative source
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Federal funding for Medicare and Medicaid in the Specialty Hospitals industry impact industry performance..

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    What's in this report

    What is the Specialty Hospitals Industry?

    This industry includes companies that provide diagnostic and medical treatment to inpatients with a specific type of disease or medical condition. Specialty hospitals include hospitals that primarily provide long-term care for the chronically ill and those that offer rehabilitation, restorative and adjunctive services to physically challenged or disabled people. The industry does not include specialty units within general hospitals or psychiatric or substance-abuse hospitals.

    Industry Products
  • Long-term acute care hospitals
  • Inpatient rehabilitation facilities
  • Children's hospitals
  • Orthopedic facilities
  • Women's facilities
  • Cancer Centers
  • Industry Activities
  • Inpatient care
  • Outpatient care
  • Diagnostic x-rays
  • Clinical laboratory services
  • Operating room services
  • Physical therapy
  • Educational and vocational services
  • Psychological and social work services
  • Table of Contents

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

  • Current Performance
  • Regulation and labor
  • Federal funding
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthcare reform changes the landscape
  • Growing competition
  • Table: Specialty Hospitals Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Diagnostic & Medical Laboratories
  • Generic Pharmaceutical Manufacturing
  • Glasses & Contact Lens Manufacturing
  • Medical Device Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling
  • Primary Care Doctors
  • Specialist Doctors
  • Waste Collection Services

  • Products & Services
  • Children's hospitals
  • Inpatient rehabilitation facilities
  • Long-term acute care hospitals
  • Cancer Centers
  • Women's facilities
  • Orthopedic facilities
  • Other
  • Chart: Specialty Hospitals Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Government-funded healthcare programs
  • Private insurance
  • Out-of-pocket payments
  • Other
  • Chart: Major Market Segmentation for the Specialty Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Specialty Hospitals

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Memorial Sloan-Kettering Cancer Center, Encompass Health Corporation,
  • Table: Memorial Sloan-Kettering Cancer Center - financial performance
  • Table: Encompass Health Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Specialty 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 Specialty Hospitals Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Federal funding for Medicare and Medicaid (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Accountable Care Organization
  • A group of healthcare professionals who coordinate to give Medicare patients (particularly the chronically ill) high-quality, timely care while minimizing inefficiency and waste.
  • Acuity
  • A measurement of the types of disorders and their severity.
  • Inpatient
  • A patient who is admitted to a hospital to stay overnight or for several weeks or months.
  • Inpatient Rehabilitation Facility (Irf)
  • A freestanding rehabilitation hospital or a specialized unit within an acute care hospital that provides intensive rehabilitation services such as physical, occupational or speech therapy.
  • Long-Term Acute Care (Ltac) Hospital
  • A hospital that offers extended medical and rehabilitative care for patients who are clinically complex and may suffer from multiple acute or chronic conditions.
  • Occupancy Rate
  • The percentage of bed capacity in a specialty hospital that is occupied on average.
  • Outpatient
  • A patient who is not hospitalized overnight but who visits a hospital, clinic, or associated facility for diagnosis or treatment.
  • What Our Customers Say

    Why buy this report?

    The Specialty Hospitals Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 Specialty 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 Specialty 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 Specialty Hospitals, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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