Hospital Services Market Size, Share & Trends Analysis Report By Service Type (Inpatient Services), By Hospital Type (State Owned), By Service Area (Others, Cancer Care), By Region, And Segment Forecasts, 2019 - 2026

Report Overview

The global hospital services market size valued at USD 7.8 trillion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2019 to 2026. Medical costs have increased in the last few decades. Advanced diagnostic technology has paved the way for improved & early disease detection and aided research on treatments for terminal diseases, such as cancer. Medical innovation is primarily fueled by the sales profits made by various cutting-edge medical institutions. With increasing awareness and affordability, the market for medical services is expected to grow, which is already evident among many developed nations, as healthcare services contribute significantly to the growth of their GDP.

As a result of growing healthcare costs, most developed nations have established national health insurance plans. In North America, the healthcare insurance sector in itself is a significant part of the overall industry. The growth of the healthcare insurance industry in the U.S. and other developed nations, which is the largest payer of healthcare services in the U.S., is expected to further propel the market for healthcare services.

Healthcare services are the largest shareholders of the healthcare industry. Pharmaceutical companies, medical devices sector, term care services, healthcare facility management services, and medical consumables industry together contribute toward the healthcare services market. Even as an end-use segment, hospitals have the largest consumer base within the healthcare industry.

Hospitals, therefore, are an integral part of the healthcare sector and are a major revenue source for the entire industry, which fuels research and innovation. Therefore, multiple corporations invest significant efforts, both in terms of revenue & marketing strategies, to promote their product/services among the hospitals. Hence, strategic decisions within the hospital sector can affect other sectors within the healthcare industry, giving them considerable power to dictate terms of the contract with suppliers/service providers/distributors.

Hospital services include the cost of equipment and ancillary services, but primarily involve service costs of healthcare professionals. Besides personnel cost, healthcare services also include the revenue from hospital disinfection services, asset maintenance costs (repairs of equipment and infrastructure), and other costs.

Service Area Insights

Hospital service areas are segmented by medical conditions into acute care, cancer care, cardiovascular, neurorehabilitation & psychiatry services, pathology lab diagnostics & imaging, obstetrics & gynecology, and others. Each service area covers a significant condition for a demographic and observes major diseases/conditions with high prevalence.

Among these segments, cancer and cardiovascular care were observed to be the largest individual in terms of medical costs incurred. The rise in the incidence of cancer and a globally aging population are expected to promote the growth of this segment. However, in terms of revenue, the others segment was observed to be the largest. This segment includes various medical services provided in a hospital, ranging from cosmetic to orthopedic procedures and includes dentistry as well. With the rise in demand for esthetic procedures and awareness about dental hygiene, a significant rise in revenue of the others segment is anticipated.

Service Type Insights

Based on type, the hospital services market has been classified into inpatient and outpatient services. Till recently, inpatient services, including hospitalization procedures that require a patient stay, were considered as a primary revenue source for hospitals. However, in recent times, due to improved quality of wound healing equipment and quicker recovery from surgeries, patient stay duration has decreased significantly, resulting in the gradual decline of the inpatient market. Furthermore, the longer hospital stay is an additional cost for hospitals, as they reduce a hospital’s capacity to admit new patients.

The outpatient market, on the other hand, is expected to grow in the future as a result of development in communication technology, which paved the way for the growth of telemedicine and remote consultation procedures. Shorter patient stay and higher medical costs for inpatients have therefore made outpatient segment a more lucrative market for hospital services providers.

Hospital Type Insights

The market has been segmented on the basis of hospital ownership type into private, state-owned, and community/public hospitals. The hospital market structure was influenced by the privatization of the hospital industry in the U.S. and U.K. Many retail clinics fall under the network of private hospitals. Globally, the hospital ownership segment indicates the revenue generated by the hospital institution type per region.

The hospital services industry is expected to exhibit growth, majorly attributed to private and community hospitals. Community/public hospitals remain the largest segment globally. Community hospitals are observed to have the largest number of patient beds and cater to numerous service areas/medical conditions via their specialized departments. They are generally promoted by local philanthropist organizations, corporations, and crowdfunded communities. However, as per the analysis of the hospital industry, private hospitals have been increasingly observed to expand their specialist capabilities and specifically cater to patients with critical care requirements, such as cancer & cardiovascular care. On the other hand, state-owned hospitals aim to primarily target patients needing acute care, including infection control and accident/trauma treatments. These hospitals are therefore expected to have a declining market share in the future, especially in developed parts of the world.

Regional Insights

North America dominated the regional segment in 2018 and held around 49.0% of revenue share. The rising cost of medical services and the increasing incidence of cancer in North America are expected to fuel the market growth during the forecast period.

However, Asia Pacific is anticipated to witness the fastest growth over the forecast period. Improving the quality of hospital services and the rising number of private players in countries such as China, India, & Thailand are expected to fuel the growth of the regional market.

Key Companies & Market Share Insights

Increasing focus on specialty services and cancer care is expected to be the major driver among hospital services providers globally. Retail clinic chains are expected to observe a rise in various parts of the world. Mergers and acquisitions among hospitals pave way for bigger institutions, although resulting in increased costs, as per the Journal of the American Medical Association (JAMA) hospital mergers report. Focus on outpatient services is expected to lower the risk and associated cost of hospital-acquired infections and, therefore, result in the growth of outpatient services sector. Some of the prominent players in the hospital services market include: 

• HCA Healthcare

• Mayo Clinic

• Cleveland clinic

• Tenet Healthcare

• Spire Healthcare Group plc

• Community Health Systems, Inc.

• Fortis Healthcare

• Ramsay Healthcare 

Hospital Services Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2015 to 2026. For the purpose of this study, Grand View Research has segmented the hospital services market report based on service type, hospital type, service areas, and region.

• Service Type Outlook (Revenue, USD Million, 2015 - 2026)

  • Inpatient Service

  • Outpatient Services

• Hospital Type Outlook (Revenue, USD Million, 2015 - 2026)

  • Private Hospital

  • State-owned Hospital

  • Public/Community Hospital

• Service Areas Outlook (Revenue, USD Million, 2015 - 2026)

  • Acute Care

  • Cardiovascular

  • Cancer Care

  • Neurorehabilitation & Psychiatry Services

  • Pathology Lab, Diagnostics, and Imaging

  • Obstetrics & Gynecology

  • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2026)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Italy

    • France

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Columbia

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa