U.S. Hospital Facilities Market Size, Share & Trends Analysis Report By Patient Services, By Facility Type (Private Hospitals, State Owned & Federal Hospitals, Public/Community Hospitals), By Bed Size, By Service Type, By Region And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. hospital facilities market size was valued at USD 1,318.9 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 7.62% from 2022 to 2030. The growing impetus for better patient care and the entry of novel healthcare technology is expected to increase the demand for well-equipped hospitals in the coming years. According to the CDC, six out of ten adults in the U.S. have a chronic disease, such as cancer, stroke, heart disease, diabetes, and others, including four in ten adults having two or more chronic conditions. These and other non-communicable chronic illnesses are the foremost causes of disability and death in the U.S. They are also a leading driver of health care costs and are expected to drive the market during the forecast period.

The demand and supply gap in the U.S. healthcare system is growing rapidly. This is mainly due to the growing number of patients and limited resources available to provide the necessary care. Furthermore, the increase in the average life expectancy of the people has created a large geriatric population in the country, which requires special medical care, creating a strain on the medical system. The limited number of healthcare providers and facilities cannot fulfill the current requirement and thus the demand for healthcare facilities is growing continuously in the U.S. According to CMS, the U.S. government spent USD 4.1 trillion on national healthcare in 2020. The country spent 19.7% of its GDP on healthcare.

As the number of patients keeps growing, the country’s healthcare expenditure is expected to grow rapidly, in turn, favoring the overall market growth. Over the years, there has been a significant rise in the number of surgical procedures performed in the U.S. According to an NCBI study, approximately 40 to 50 million surgical procedures are performed in the country every year. In addition, according to the National Center for Health Statistics, over 40 million inpatient surgical procedures were performed in the U.S., which is closely followed by 31.5 million outpatient surgeries. The procedures that were performed most frequently included the digestive system, musculoskeletal system, cardiovascular system, and ophthalmology.

This is expected to drive the demand for hospital services due to the availability of specialized medical staff and growing awareness about their effectiveness in healthcare settings. Furthermore, technological advancements, such as Artificial Intelligence (AI), electronic health records, mHealth, telemedicine/telehealth, sensors & wearable technology, wireless communication systems, remote-monitoring, robotics, and other notable innovations, are expected to drive the market during the forecast period. For instance, Northwestern Memorial Hospital and Caption Health announced a collaboration in October 2020 to bring new AI-powered ultrasound equipment into clinical practice.

COVID-19 U.S. hospital facilities market impact: 2.2% decrease in revenue from 2019 to 2020

The FDA-cleared, AI-guided ultrasound system enables healthcare practitioners to obtain and interpret high-quality ultrasound pictures of the human heart, therefore boosting access to accurate and rapid cardiac assessments at the point of care. The ongoing pressure on the hospital facilities is expected to reduce by mid-2021 as COVID-19 vaccination and treatments begin to emerge. Furthermore, privatization within the sector is expected to boost capital expenditure and promote revenue growth by the end of the forecast period. Furthermore, as these hospitals face dynamic regulatory changes, financial pressure, and reduced profits, the market is expected to witness rapid consolidation, which will enable them to pool resources and increase their capital expenditure.

Patient Service Insights

In terms of patient services, the market is segmented into outpatient services and inpatient services. The outpatient services segment dominated the market with a share of 50.6% in 2021. The development of new technologies, such as telemedicine, telemonitoring, and diagnostic techniques has led to shorter patient stays as physicians can provide treatment remotely, which, in turn, reduces overhead costs and patient fees. Furthermore, there is a gradual shift to outpatient or daycare surgeries among patients. Minimally invasive surgeries have made it possible for daycare surgeries to flourish. This is expected to boost the outpatient service segment growth.

The inpatient services segment is expected to grow owing to the rising number of hospitalizations and high cost of care for inpatients. According to Healthcare Cost and Utilization Project (HCUP), in 2018, septicemia, heart failure, osteoarthritis, pneumonia, and diabetes with complications were the top five reasons for inpatient stays in the U.S. The inpatient services segment is projected to have moderate growth during the forecast period. Inpatient services are the primary source of revenue for hospitals. However, due to the introduction of novel techniques, such as better diagnostics and interventional surgeries, the recovery time for patients is being reduced. Thus, the average time for an inpatient is reduced, which, in turn, is expected to decrease the share of the inpatient services segment in the near future.

Service Type Insights

Based on service type, the market is segmented into acute care, cardiovascular, cancer care, neurorehabilitation & psychiatry services, pathology lab, diagnostic, and imaging, obstetrics & gynecology, and others. The cardiovascular segment dominated the market accounting for a share of 20.4% in 2021. The segment is expected to dominate the market over the forecast period. The growing adoption of a sedentary lifestyle is leading to a rise in the incidence of obesity in the U.S., thereby, increasing the risk of heart diseases. Thus, an increasing number of patients suffering from CVDs is expected to propel the segment growth. The cancer care segment is expected to account for a significant market share over the forecast period. Cancer is the second leading cause of death in the U.S. after CVD.

According to HCUP, there were about 2.8 million cancer-related hospitalizations in 2017. Out of these, around 1.0 million hospitalizations had cancer as a principal diagnosis and 1.7 million had cancer as a secondary diagnosis. The increasing cost of cancer treatment, rising number of specialized oncology departments & oncologists, and supportive reimbursement framework are among key factors expected to propel the segment growth. The acute care segment is expected to witness the fastest CAGRfrom 2022 to 2030owing to the demand for primary care services and the rising prevalence of acute infections. For instance, according to the CDC, a total of 523,000 emergency visits for infectious and parasitic diseases resulted in admissions in 2018.

Facility Type Insights

On the basis of facility type, the market is further divided into public/community hospitals, state-owned & federal hospitals, and private hospitals. The public/community hospitals segment dominated the market with a share of 52.2% in 2021. Community hospitals hold the highest number of patient beds and offer a wide variety of care areas/medical issues through their different services. They are non-profit organizations meant for public services and are supported by various philanthropic groups, businesses, and crowd-funded societies. The state-owned & federal hospitals segment held the second-largest share of the market.

State-owned hospitals primarily aim to target patients who require acute care, including infection control and accident/trauma cases. Federal hospitals play an essential role in providing health services to patients having limited access to quality care. According to AHA, in 2021, there were 208 federal hospitals in the U.S. Increasing access to public healthcare is expected to drive the segment. On the other hand, the private hospitals segment is anticipated to witness lucrative growth over the forecast period. Private hospitals have gradually advanced their technology to better serve patients in need of critical care, such as cancer patients. The growing number of private hospitals and consolidation of healthcare facilities are expected to bolster the growth of the segment.

Key Companies & Market Share Insights

Hospitals are collaborating with medical technology companies to adopt the latest technologies for healthcare delivery. For instance, in May 2021, UCSF Health announced a collaboration with Royal Philips to develop technology that will enable a more modern, streamlined patient experience and establish a new standard for healthcare delivery. In addition, key players are strengthening their position in the market through activities, such as mergers & acquisitions and facility expansion. Some of the prominent players in the U.S. hospital facilities market include:

• The Johns Hopkins Hospital

• Mayo Clinic

• Cleveland Clinic

• Cedars Sinai

• Massachusetts General Hospital

• UCSF Health

• NewYork-Presbyterian Hospital

• Brigham And Women's Hospital

• Ronald Regan UCLA Medical Center

• Northwestern Memorial Hospital

U.S. Hospital Facilities Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. hospital facilities market report on the basis of patient service, facility type, service type, bed size, and region:

• Patient Service Outlook (Revenue, USD Billion, 2017 - 2030)

  • Inpatient Services

  • Outpatient Services

• Facility Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Private Hospitals

  • State-owned & Federal Hospitals

  • Public/Community Hospitals

• Service Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Acute Care

  • Cardiovascular

  • Cancer Care

  • Neurorehabilitation & Psychiatry Services

  • Pathology Lab, Diagnostics, and Imaging

  • Obstetrics & Gynecology

  • Others

• Bed Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • 0-99

  • 100-199

  • 200-299

  • 300-more

• Region Outlook (Revenue, USD Billion, 2017 - 2030)

  • Northeast

  • Southeast

  • Southwest

  • Midwest

  • West