Healthcare Finance Solutions Market Size, Share & Trends Analysis Report By Equipment Type (Specialist Beds, IT Equipment), By Healthcare Facility Type (Urgent Care Clinics, Pharmacies), By Service, And Segment Forecasts, 2022 - 2030

Report Overview

The global healthcare finance solutions market size was valued at USD 111.0 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 7.7% over the forecast period. The continuous need to improve processes and performance and the requirement for hi-tech equipment and technology are some of the factors that are driving the industry's growth. The rising cases of chronic diseases, the growing geriatric population across the globe, and advances in early diagnosis are driving global healthcare expenditures. To support the healthcare sector, some of the key providers are offering great deals. For example, Siemens Financial Services (SFS) is helping healthcare providers to achieve their clinical and operational goals by adopting digitalization.

It is difficult for healthcare systems to succeed financially and provide high-quality care due to government budget constraints, scarce resources, and limited-to-nonexistent access to the capital market. In addition, continuously decreasing the cost of treatment owing to technological advancement is anticipated to drive industry growth over the forecast period. The pandemic had a negative impact on the industry. Negative growth in 2020 was majorly due to initial restrictions mandated by the government to control the spread of the virus and the global slowdown of healthcare activities. For instance, as per an article published by Equipment Leasing & Finance Association (ELFA), the equipment finance industry witnessed a volume decrease of 7% in 2020.

The decrease was due to the COVID-19 pandemic that gripped the world and transformed the healthcare businesses. Moreover, the medical imaging equipment finance solution volume declined by -2.9% in 2020. However, the ease in restrictions in 2021 and sudden spike in demand for hospital equipment have mitigated the negative impact of the pandemic and the market witnessed a drastic rebound in 2021, which is anticipated to be reflected throughout the forecast period. Healthcare is an evolving and rapidly expanding industry. Advancements in digital technology, the rising prevalence of diseases, and the introduction of advanced drugs & medicines have led to an increased healthcare demand and expenditure.

The healthcare system is shifting from volume to value-based care to improve patient care and patient engagement. Traditional healthcare services, also referred to as “fee for service”, such as volume-based care, do not assure that patients would have a successful outcome. Whether a service is successful or necessary, healthcare providers are compensated for every service rendered. The primary objective of the value-based care delivery framework is to improve healthcare outcomes while keeping costs down. In this model, payers can designate a prime provider to be responsible for budget disbursement to secondary healthcare providers rather than paying healthcare providers directly.

Equipment Type Insights

Based on equipment, the industry is segmented into diagnostic/imaging equipment, specialist beds, surgical instruments, decontamination equipment, and IT equipment. The decontamination equipment dominated the market with a share of more than 35.00% in 2021 as they are costly and need huge capital investment. Decontamination equipment is the patient care equipment. As more patients are exposed to infections and the urgency of eradicating infections develops, the decontamination equipment segment is anticipated to grow. Surgical devices can only be considered safe to reuse after decontaminated.

In addition, the increasing demand for the most appropriate care and the desired outcomes are likely to boost the demand for advanced equipment, which is anticipated to support the market growth.The segment of specialist beds is anticipated to grow at the fastest CAGR over the forecast period. This is due to the high demand for advanced beds in healthcare facilities. Moreover, favorable government initiatives pertaining to the development of healthcare infrastructure are expected to fuel the industry growth over the forecast period. Specialist beds are produced to effectively treat various injuries. These includes egacy beds, standing beds, and turning beds. These are typically used to treat severe trauma, including back and spinal injuries.

Healthcare Facility Type Insights

Based on healthcare facility types, the market is divided into outpatient imaging centers, hospitals & health systems, physician practices, outpatient surgery centers & outpatient clinics, diagnostic laboratories, skilled nursing facilities, urgent care clinics, pharmacies, and other healthcare providers.The hospital & health systems segment accounted for the largest shareof more than 24.50% of the global revenue in 2021 owing to a rise in the number of hospitals & health systems. Among frequently changing laws, increasing patient demands, and expansion of healthcare access & hospitals need financial support.

Simultaneously, healthcare facilities are expected to offer patients the most appropriate care and the most desired outcomes. On the other hand, the outpatient surgery centers segment is anticipated to witness the fastestCAGR over the forecast period, owing to an increasing number of such facilities being established across the globe. As per an article published by Radius Anesthesia in 2021, the number of outpatient surgery centers, such as Ambulatory Surgical Centers (ASCs), has grown steadily over the years. There has been a significant growth in the total number of outpatient surgeries performed across the ASCs. For instance, the total number of outpatient surgeries performed across the ASCs in 2008 was 32%, which has considerably grown to 50% by 2017.

Services Insights

On the basis of services, the global industry has been further segmented into working capital finance, equipment and technology finance, corporate lending, and project finance solutions. The equipment and technology finance segment dominated the global space and accounted for the largest share ofmore than 45.00% of the overall revenue in 2021. This is due to the huge capital required for the setup along with the costly healthcare equipment, which requires financial support. In the future, digital technology might evolve the patient experience by providing real-time access to medical services and related assistance.

This upgradation would require the installation of equipment that can handle and manage such tasks seamlessly. As technology advances and the demand for advanced healthcare increases, the cost of the devices will be a critical factor for healthcare providers. The cost for such devices would have a significant impact on the industry's growth.The corporate lending segment is anticipated to witness a lucrative growth rate over the forecast period. The high growth of the segment is due to the increasing number of private players offering flexible solutions in terms of corporate lending, thus gaining attraction in developed as well as developing economies.

Regional Insights

Based on geography, North America dominated the industry in 2021 and accounted forthe largest share of more than 38.5% of the global revenue. The region has a high adoption rate of advanced medical technology. Furthermore, the expansion of the regional market would be fueled by a growinggeriatric population, an increase in chronic illness cases, and supportive government initiatives. Due to the presence of numerous key players, the region is also anticipated to experience profitable growth during the forecast period. The U.S. is one of the top producers and developers of technologically advanced products for the healthcare sector, which is raising the overall cost of healthcare for patients.

Patients are now facing a greater financial burden as a result of this. There is a 40 to 50% increase in cost per year due to new medical technology. The AsiaPacific region is anticipated to witness the fastest growth rate over the forecast period. A large patient base and an increase in healthcare expenditure are some other factors to propel the growth of the market in the region. For instance, healthcare costs are increasing more rapidly than real wages, with increases of 3.3 times and 7.8 timesin Australia and Singapore, respectively. Overall, 57% of consumers find that paying for medical expenses out of pocket is unaffordable, and 42% believe that private insurance premiums are out of control.

Key Companies & Market Share Insights

Industry participants are investing in R&D, mergers, partnerships, etc.to strengthen their position.For instance, in July 2021, CIT Group Inc. acted as the primary arranger of a $100 million financing for the long-term acute care hospital division of Cornerstone Healthcare Group Holdings Inc. Also, Oxford announced the completion of a $50 million secured debt term loan with OncoResponse, a clinical-stage biotech company, in February 2022. The loan would be used to advance immunotherapies obtained from the immune function of top cancer responders. The agreement would pay for general operating capital as well as clinical trials for OR2805, the company’s lead drug that is currently in development.Some prominent players in the global healthcare finance solutions market include:

• Koninklijke Philips N.V.

• General Electric Company

• Commerce Bancshares, Inc.

• Siemens Financial Services, Inc.

• Thermo Fisher Scientific, Inc.

• Stryker

• Gemino Healthcare Finance

• Oxford Finance LLC

• TCF Capital Solutions

• CIT Group, Inc.

Healthcare Finance Solutions Market Report Scope

Global Healthcare Finance Solutions Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global healthcare finance solutions market report on the basis of equipment type, healthcare facility type, service, and region.

• Equipment Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Diagnostic/Imaging Equipment

  • Specialist Beds

  • Surgical Instruments

  • Decontamination Equipment

  • IT Equipment

• Healthcare Facility Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hospitals & Health Systems

  • Outpatient Imaging Centers

  • Outpatient Surgery Centers

  • Physician Practices & Outpatient Clinics

  • Diagnostic Laboratories

  • Urgent Care Clinics

  • Skilled Nursing Facilities

  • Pharmacies

  • Other Healthcare Providers

• Service Outlook (Revenue, USD Billion, 2018 - 2030)

  • Equipment And Technology Finance

  • Working Capital Finance

  • Project Finance Solutions

  • Corporate Lending

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • India

    • China

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE