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. 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...read more.

Industry Statistics & Market Size
Revenue
$49bn
Annual Growth 12-17
2.8%
Forecast Growth 17-22
Profit
Employment
320,071
Businesses
1,228
What Our Customers Say

Industry Threats & Opportunities

  • The aging population and rising number of insured individuals will drive revenue growth
  • Industry consolidation was encouraged by provisions of healthcare reform
  • Reform will create powerful incentives for specialty hospitals to form large systems of care
  • 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 $0.10 is spent on capital. Labor accounts for 39.3% of total hospital revenue, whereas depreciation expenses represent 3.8%. The industry is highly dependent on skilled full-time and contract labor (i.e. physicians, surgeons and nurses) to provide specialized 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. 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 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 and 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
  • Healthcare reform changes the landscape
  • Growing competition
  • 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
  • Profit
  • Wages
  • Purchases
  • Other
  • 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 CenterHealthSouth Corp.Kindred Healthcare Inc.
  • Table: Memorial Sloan-Kettering Cancer Center - financial performance
  • Table: HealthSouth Corp. - financial performance
  • Table: Kindred Healthcare Inc. - 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal funding for Medicare and Medicaid (2008-2022)

  • 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.
  • Why buy this report?

    IBISWorld’s Specialty 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 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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