Healthcare Finance Solutions Market Size, Share & Trends Analysis Report By Equipment Type, By Healthcare Facility Type, By Service, And Segment Forecasts, 2020 - 2026

Report Overview

The global healthcare finance solutions market size was valued at USD 106.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of7.9% from 2020 to 2026. The continuous need to improve processes and performance and requirement of hi-tech equipment and technology are some of the factors that are driving this market’s growth. The surge in chronic diseases, growing aging world population, and advances in early diagnosis are driving global healthcare expenditures.

The U.S. healthcare sector requires a large number of investments to enable the current digital shift. To support the healthcare sector, some of the big financial solution providers are offerings great deals in the market. 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. Also, continuously decreasing the cost of treatment owing to technological advancement is anticipated to drive the market’s growth over the forecast period.

Healthcare Finance Solutions Market Trends

Healthcare is an evolving and expanding industry. Increasing prevalence of diseases, advancements in digital technology, and introduction of advanced drugs & medicines have led to increased healthcare demand and expenditure. The healthcare system is shifting from volume to value-based care to improve patient care and patient engagement.

Volume-based care is a traditional healthcare service, which is known as (Fee for Service), which does not assure positive outcome for patients. Healthcare providers are paid for each service provided, regardless of whether the service is successful or necessary. Value-based care delivery framework is aimed at enhancing healthcare outcomes at a lower cost. Under this model, payers do not pay healthcare providers individually, but can commission a prime provider to be liable for budget disbursement to secondary healthcare providers.

The healthcare industry is evolving with rising adoption of technologically advanced products for enhancing functions and processes. Advancements can be observed in healthcare equipment, software, infrastructure, and therapy, among others. Safe and effective therapy or treatment is a primary concern of every healthcare provider, and technological advancements make it easy to achieve this goal.

Improvements in technological access, internet, and video & remote monitoring capabilities can help providers deliver healthcare services in more cost effective, patient-centered settings. This strategy is likely to decrease overall burden of healthcare expenses on patients. The COVID-19 pandemic has positively impacted reimbursement policy; thus, there has been increase in the adoption of home-based care and telehealth.

The need for healthcare facilities is increasing due to rising prevalence of chronic diseases & disabilities and growing geriatric population the country. Elderly people account for 15% market share of hospital admission in the U.S. In the country, chronic diseases have affected more than 40% of the total population and more than 75% of the healthcare cost is due to chronic conditions, such as cancer, diabetes, hypertension, stroke, heart disease, pulmonary conditions, and mental illness.

Equipment Insights

Based on equipment, the market is segmented into diagnostic/imaging equipment, specialty beds, surgical instruments, decontamination equipment, and IT equipment. The decontamination equipment dominated the market  share in 2018 as they are costly and need huge capital investment. Additionally, the increasing demand for most appropriate care and the desired outcomes are likely to boost the demand for the advanced equipment which is anticipated to support the market growth.

The segment of specialty beds is anticipated to grow at the fastest CAGR of 8.9% over the forecast period. This is due to the increase in demand for advanced beds in the healthcare facilities. Moreover, favorable government initiatives about the development of healthcare infrastructure are expected to fuel this industry’s growth over the forecast period.

Healthcare Facility Insights

Based on the healthcare facility, the market is divided into 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.

The hospital & health systems segment was the largest segment in 2018 accounting for 23.6% of the market share owing to the increasing number of hospitals & health systems along with their increasing demand. Among frequently changing laws, expansion of healthcare access, and increasing patient demands, hospitals need financial support. Simultaneously, healthcare facilities are expected to offer the most appropriate care and the most desired outcomes to the patients. Hence, the hospital & health system facility is anticipated to witness significant growth over the forecast period.

Services Insights

Based on services, the global market is segmented into equipment and technology finance, working capital finance, project finance solutions, and corporate lending. Equipment and technology finance contributed to the largest market share accounting for 43.5% of the share in 2018. This is due to the huge capital required for the set up along with the costly healthcare equipment which requires financial support.

In the future, digital technology might evolve the patient’s experience by providing real-time access to medical service and related assistance. This update will require the installation of equipment that can handle and manage such tasks seamlessly. As technology advances and demand for advanced healthcare increases the cost of the devices, it will be a critical factor for healthcare providers. The cost of such devices will have a significant impact on the healthcare finance solutions market growth.

Regional Insights

Geographically, the healthcare finance solution market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominated the market in 2018 with a market share of 38.2%. This is due to the high demand for advanced healthcare systems and electronic data management initiatives. North America is also expected to witness lucrative growth over the forecast period due to the presence of a large number of key players. For instance, Siemens Financial Services, Inc and Commerce Bancshares, Inc.

The U.S. is one of the leading countries to manufacture and develop technologically advanced products for the healthcare industry, which is resulting in increase in the total cost of healthcare for patients. This is directly increasing financial burden on patients. New medical technology is responsible for 40% to 50% increase in annual cost.

Healthcare administrative costs in the U.S. account for about 30% of total healthcare expenditure, and the country spends far more than other wealthy nations on healthcare administration. Rising healthcare cost and introduction of new & expensive technology are resulting in increase in administrative expenses of healthcare providers.

Asia Pacific region is expected to witness the fastest growth over the forecast period. An increase in healthcare expenditure and a large patient base are some of the other factors anticipated to propel the growth of the healthcare finance solution market in the region. The investment by international healthcare finance solution providers such as the Asian Development Bank is anticipated to drive the market’s growth over the forecast period.

Key Companies & Market Share Insights

The players are focusing on adopting various growth strategies, such as partnership and expansion of product portfolio to retain their market position. For instance, Siemens expanded its financial solutions in the Asia- Australia region to offer financial support to the local healthcare providers. Siemens Bank GmbH received approval from the Monetary Authority of Singapore to operate as a merchant bank in the country. Some of the prominent players in the healthcare finance solutions market include:

• Koninklijke Philips N.V.

• General Electric Company

• Commerce Bankshares, 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

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2026. For this study, Grand View Research has segmented the global healthcare finance solutions market report based on equipment, healthcare facility, services, and region:

• Healthcare Finance Solutions Equipment Outlook (Revenue, USD Billion, 2015 - 2026)

  • Diagnostic/Imaging Equipment

  • Specialty Beds

  • Surgical Instruments

  • Decontamination Equipment

  • IT Equipment

• Healthcare Finance Solutions Healthcare Facility Outlook (Revenue, USD Billion, 2015 - 2026)

  • 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

• Healthcare Finance Solutions Services Outlook (Revenue, USD Billion, 2015 - 2026)

  • Equipment and Technology Finance

  • Working Capital Finance

  • Project Finance Solutions

  • Corporate Lending

• Healthcare Finance Solutions Regional Outlook (Revenue, USD Billion, 2015 - 2026)

  • North America

    • The 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