Clean build of health: The aging population and regulatory shifts are expected to stem revenue declines

The Hospital Construction industry has encountered challenging conditions over the past five years. Hospitals have endured a high degree of fiscal uncertainty due to potential changes from the Patient Protection and Affordable Care Act (PPACA). Furthermore, because of low profit margins resulting from caps on revenue inflows through the PPACA, hospitals shelved expansion plans and new construction work due to less available cash to finance these projects. Over the five years to 2022, the industry's losses are expected to decelerate. The potential repeal of the PPACA would lead to millions of uninsured people, limiting revenue collection for hospital services...purchase to read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 12-17
-4.9%
Forecast Growth 17-22
Profit
Employment
25,101
Businesses
3,973
Market Share of Companies

Industry Threats & Opportunities

  • As a result of the PPACA, hospitals shelved expansion plans and new construction work due to less available cash to finance these projects
  • Inpatient care would be most affected by the potential PPACA repeal
  • New hospital construction will be driven by the gradual aging of the US population
  • Industry Report - Industry SWOT Analysis Chapter

    The Hospital Construction industry is in the mature stage of its industry life cycle, although structural changes to the industry may point to a declining stage. Over the 10 years to 2022, industry value added (IVA), which measures the industry's contribution to the overall economy, is projected to fall at an annualized rate of 2.3%. Comparatively, GDP is forecast to rise at an annualized rate of 2.1%. Although IVA is expected to decline steadily, the stark contrast is a result of the major regulatory uncertainty surrounding the larger healthcare sector. Overall, industry services remain an essential part of the US economy...purchase to read more.

    Additional Insights for the Hospital Construction Industry

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

  • Must comply with government regulations
  • Having links with suppliers
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Federal funding for Medicare and Medicaid in the Hospital Construction industry impact industry performance..

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    What's in this report

    What is the Hospital Construction Industry?

    The industry includes operators that engage in new work, additions and reconstruction projects for both private and public hospital construction projects. The industry excludes the construction of nonhospital medical buildings and special care buildings.

    Industry Products
  • Hospital new construction contracting
  • Hospital remodeling contracting
  • Hospital construction maintenance and repair
  • Industry Activities
  • Private hospital construction and expansion
  • Public hospital construction and expansion
  • Hospital remodeling and renovation
  • Hospital construction management and related 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 physician visits
  • Regulation
  • Yield on 10-year Treasury note

  • Current Performance
  • Healthcare policy and restructuring
  • Potential repeal of the PPACA
  • Industry landscape and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Stagnant demand
  • Industry expansion
  • Table: Hospital Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Healthcare and Social Assistance
  • Hospitals
  • Religious Organizations
  • Public Administration

  • Key Selling Industries
  • Cement Manufacturing
  • Construction
  • Glass Product Manufacturing
  • Heavy Equipment Rental
  • Iron & Steel Manufacturing

  • Products & Services
  • Hospital remodeling contracting
  • Hospital new construction contracting
  • Hospital construction maintenance and repair
  • Chart: Hospital Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Nongovernment Not-for-Profit Community Hospitals
  • Investor-Owned (For-Profit) Community
  • State and local government
  • Federal government
  • Chart: Major Market Segmentation for the Hospital Construction Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hospital Construction Industry

  • Industry Globalization
    Turner Construction Company,
  • Table: Turner Construction Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hospital Construction 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 Hospital Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total health expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computer-Aided Design (Cad)
  • The use of computer technology to aid the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • Developer
  • An enterprise that prepares a real estate site for residential or commercial use. A developer raises capital, gains zoning approvals and hires contractors to design, construct and develop property.
  • General Contractor (Gc)
  • An individual or company that manages the construction of a structure for a property owner or developer; may retain a labor force or use subcontractors. Also called a prime contractor.
  • Leadership In Energy And Environment Design (Leed)
  • An environmental building certificate program that was established under the US Green Building Council and certifies buildings that meet energy-efficiency and green requirements.
  • Patient Protection And Affordable Care Act (Ppaca)
  • This 2010 act aims to increase the rate of health insurance coverage for Americans and to reduce the overall costs of healthcare through mandates, subsidies and tax credits.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hospital Construction Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Hospital Construction industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Hospital Construction:
    • 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 Hospital Construction 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 Hospital Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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