Growing up: Healthcare reform will spur industry expansion, despite Medicaid funding threats

Although children's specialty hospitals represent less than 5.0% of all hospitals in the United States, they are the backbone of the pediatric healthcare infrastructure. Due to the indispensable nature of services provided by these hospitals, demand for the Children's Specialty Hospitals industry has remained strong over the past five years. Furthermore, children's hospitals benefit from a unique mix of revenue sources. Unlike adults, the vast majority of children have some type of health insurance coverage, either through their parents' private, employer-sponsored plans, Medicaid or the Children's Health Insurance Program (CHIP). As a result, the number of uninsured children has fallen dramatically since 1987, further bolstering demand for and affordability of hospital services...purchase to read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 12-17
1.0%
Forecast Growth 17-22
Profit
Employment
176,404
Businesses
588

Industry Threats & Opportunities

  • Rising prevalence of chronic conditions among school-aged children will keep demand strong
  • Competition from other healthcare service providers has risen, limiting profit
  • The PPACA will continue to support industry demand by raising the number of insured patients
  • Industry Report - Industry Key Buyers Chapter

    The Children's Specialty Hospitals industry has a low market share concentration and is characterized by many small-scale, geographically dispersed participants. The four largest companies combine to account for 28.6% of industry revenue in 2017. This low concentration indicates that the industry is highly fragmented and that there is significant scope for facility expansion by some of the industry's major players. For example, Lucile Packard Children's Hospital is currently looking to expand its existing facilities, with a goal of adding 104 new beds in 2017. IBISWorld estimates that market share concentration has increased over the five years to 2017, as the number of industry operators has fallen an annualized 1.5%, even as demand has grown and industry employment has expanded...purchase to read more.

    Additional Insights for the Children's Specialty Hospitals Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Children's 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 Federal funding for Medicare and Medicaid and Number of people with private health insurance in the Children's Specialty Hospitals industry impact industry performance..

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    What's in this report

    What is the Children's Specialty Hospitals Industry?

    This industry includes hospitals that provide diagnostic and medical treatment (surgical and nonsurgical) to inpatients who are typically aged 21 and younger. These hospitals treat a specific type of disease or medical condition (except psychiatric conditions or substance abuse), maintain inpatient beds and provide patients with food services and other services (e.g. outpatient services, X-ray services, laboratory services, operating room services and pharmacy services).

    Industry Products
  • Cardiology and CT surgery services
  • General pediatric services
  • Neonatology services
  • General surgery services
  • Critical care and anesthesia services
  • Other services
  • Oncology
  • Industry Activities
  • Inpatient care
  • Outpatient care
  • Operating room services
  • Diagnostic X-ray services
  • Clinical laboratory 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 births
  • Per capita disposable income

  • Current Performance
  • Industry headwinds and tailwinds
  • Consolidation continues
  • Shortage of physicians and nurses
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing landscape
  • Ongoing shortage of medical personnel
  • Table: Children's Specialty Hospitals Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Children's 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
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling
  • Primary Care Doctors
  • Specialist Doctors
  • Waste Collection Services

  • Products & Services
  • General surgery services
  • Other services
  • Cardiology and CT surgery services
  • General pediatric services
  • Critical care and anesthesia services
  • Neonatology services
  • Oncology
  • Chart: Children's Specialty Hospitals Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private health insurance
  • Medicaid
  • Out-of-pocket expenditures
  • Other
  • Chart: Major Market Segmentation for the Children's Specialty Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesProvision for doubtful accountsPurchases and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Children's Specialty Hospitals

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Children's Specialty Hospitals Industry

  • Industry Globalization
    Children's Hospital of Philadelphia, Boston Children's Hospital, Children's Medical Center of Dallas,
  • Table: Children's Hospital of Philadelphia - financial performance
  • Table: Boston Children's Hospital - financial performance
  • Table: Children's Medical Center of Dallas - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Children's 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 Children's 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
    Accountable Care Organizations
  • Groups of physicians, hospitals and other healthcare providers that provide coordinated care to their patients.
  • Inpatient
  • Admitted patients who say overnight or longer.
  • Outpatient
  • A patient admitted to a hospital, clinic or associated facility for diagnosis or treatment and released the same day.
  • Pediatrics
  • The branch of medicine dealing with children and their diseases.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Children'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 Children's 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 Children's 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 Children's 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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