GVR Report cover U.S. Hospital Facilities Market Size, Share & Trends Report

U.S. Hospital Facilities Market Size, Share & Trends Analysis Report By Patient Services, By Facility Type, By Service Type (Acute Care, Cancer Care, Cardiovascular), And Segment Forecasts, 2020 - 2027

  • Published Date: Jan, 2021
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-326-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 60

Report Overview               

The U.S. hospital facilities market size was valued at USD 909.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2020 to 2027. The growing impetus for better patient care and entry of novel healthcare technology is expected to increase the demand for well-equipped hospitals in coming years.

U.S. hospital facilities market size, by patient services, 2016 - 2027 (USD Billion)

The demand and supply gap of the healthcare system in the U.S. 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 average life expectancy of the people has created a large geriatric population in the country which requires special medical care, which in turn has created 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 like hospitals is growing continuously in the U.S.

The U.S. government in 2018 spent USD 3.6 trillion on national healthcare. The country spent 17.7% of its GDP on healthcare; however, as the number of patients keeps growing, the country’s healthcare expenditure is expected to grow rapidly and in turn likely to create diversity in the allotment of funds into various healthcare sectors further, enhancing the gap between supply and demand.

The COVID-19 pandemic has further bolstered the demand for healthcare facilities in the U.S. as the hospitals are facing financial as well as operational challenges. One of the key steps undertaken by the hospitals at the onset of the pandemic was postponing elective surgeries, which has led to monumental monetary losses for the hospitals. Furthermore, hospitals now facing a financial crunch are also witnessing increased cost and shortage of necessary equipment such as ventilators due to a surge in demand for treatment of COVID-19 patients. Moreover, the increased spending caused by protective equipment such as PPE kits is further adding to the strain on the healthcare systems and hospital facilities' profits.

The ongoing pressure on the hospital facilities is expected to reduce by mid-2021 as Covid-19 vaccine 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. As of 2019, nearly 79% of the hospitals in the U.S. are private. Furthermore, as these hospitals face dynamic regulatory changes, financial pressure, and reduced profits, the market is expected to witness rapid consolidation, which will enable these hospitals to pool resources and increase their capital expenditure. 

Patient Service Insights

The inpatient services segment dominated the market for hospital facilities and accounted for the largest revenue share of 72.8% in 2019. Inpatient services are the primary source of revenue for hospitals. This segment is expected to remain dominant throughout the forecast period. 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 being reduced which in turn is expected to decrease the share of the inpatient services segment in the near future.

The outpatient services segment is expected to witness the fastest CAGR of 11.9% over the forecast period. 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 hospital overhead costs and patient fees. Furthermore, minimally invasive surgeries have made it possible for ambulatory surgical centers to flourish and this, in turn, is expected to boost the outpatient service segment in the U.S. hospital facilities market.

Service Type Insights

The cardiovascular segment dominated the market for hospital facilities and accounted for the largest revenue share of 20.3% in 2019. The segment is expected to remain the most dominant segment over the forecast period. The cancer care service segment is expected to account for the second-largest market share over the forecast period. The increase in cancer incidence and an aging population worldwide are projected to stimulate revenue growth for the segment.

The acute care segment is expected to witness a CAGR of 9.7% from 2020 to 2027. The increasing number of trauma cases and infectious diseases is expected to boost demand for acute care facilities. This segment is followed by the other services segment, which includes numerous hospital care facilities, ranging from cosmetic, orthopedic, dental, and other services.

Facility Type Insights

The private facilities segment dominated the market for hospital facilities and accounted for the largest revenue share of 78.3% in 2019. The growing number of private hospitals and consolidation of healthcare facilities is expected to bolster the growth of the privately held hospital facilities. Private hospitals have gradually been seen to broaden their advanced technology to directly appeal to critical-care patients, such as cancer. On the other end, state-owned hospitals tend mainly to reach people in need of emergency care, including infection control and accident/traumatic treatment.

U.S. hospital facilities market share, by facility type, 2019 (%)

The state-owned and federal hospitals segment accounted for 11.2% of the revenue share in 2019. Whereas, the public and community-led hospitals segment accounted for 9.9% of the total revenue share in 2019. The segment is expected to expand at a CAGR of 7.8% over the forecast period. Community hospitals hold the highest number of patient beds and tend to a wide variety of care areas/medical issues through their different services. Local philanthropic groups, businesses, and crowd-funded societies typically support them.

Key Companies & Market Share Insights

Strategic expansions by companies in the form of integration are expected to boost the competition and propel the growth of the market. With the entry of novel products, the hospital facilities are expected to witness strong consolidation in order to expand their healthcare offerings. Some of the prominent players in the U.S. hospital facilities market include:

  • HCA Healthcare

  • Ascension Health

  • CommonSpirit Health

  • Community Health Systems

  • Trinity Health

  • LifePoint Health

  • Tenet Healthcare

  • Vibra Healthcare

  • Providence St. Joseph Health

  • Atrium Health

  • AdventHealth

  • Baylor Scott & White Health

U.S. Hospital Facilities Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 951.2 billion

Revenue forecast in 2027

USD 1688.7 billion

Growth Rate

CAGR of 8.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Patient service, facility type, service type

Country scope

The U.S.

Key companies profiled

HCA Healthcare; Ascension Health; CommonSpirit Health; Community Health Systems; Trinity Health; LifePoint Health; Tenet Healthcare; Vibra Healthcare; Providence St. Joseph Health; Atrium Health; AdventHealth; Baylor Scott & White Health

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research, Inc. has segmented the U.S. hospital facilities market report on the basis of patient service, facility type, and service type:

  • Patient Services Outlook (Revenue, USD Billion, 2016 - 2027)

    • Inpatient

    • Outpatient

  • Facility Type Outlook (Revenue, USD Billion, 2016 - 2027)

    • Private Hospitals

    • State-Owned & Federal Hospitals

    • Public/Community Hospitals

  • Service Type Outlook (Revenue, USD Billion, 2016 - 2027)

    • Acute Care

    • Cardiovascular

    • Cancer Care

    • Neurorehabilitation & Psychiatry Services

    • Pathology Lab, Diagnostics, and Imaging

    • Obstetrics & Gynecology

    • Others

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