U.S. Integrated Delivery Network Market Size, Share & Trends Analysis Report By Integration Model (Horizontal, Vertical), Services Type (Acute Care/Hospitals, Long Term Health), And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. integrated delivery network market size was valued at USD 998.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 10.1% from 2020 to 2027. Growing demand for value-based healthcare services and an increasing number of geriatric population, which is highly prone to chronic diseases, are expected to boost the need for low-cost and organized healthcare systems. This, in turn, will augment the U.S. IDN market growth. Moreover, the ongoing consolidation of healthcare facilities, either by collaborations or partnerships, are expected to drive the market. Integrated delivery network (IDN) also known as the Integrated delivery system (IDS) aims at providing more effective, efficient, and quality health care services at a lower cost with a focus on the patient’s health. IDNs are formed through the consolidation of physicians’ groups, clinics, and hospitals. These IDNs offer multiple benefits to the healthcare providers as well as patients availing the healthcare services.

For providers (including hospitals, doctors, physicians, etc.) IDNs offers the ability to adapt to the changing healthcare environment, improved geographic reach, improved quality of service, contractual benefits, strengthened financial capabilities, and economies of scale. Other benefits include increased market visibility of hospitals and secured income to the physician. On the other side, patients benefit from a well-coordinated system with access to multiple healthcare services (such as primary care, acute care, financial services, among others) through a single entity at low costs.

With the introduction of the Affordable Care Act in 2010, the healthcare facilities have started focusing on outpatient settings, as the federal government started providing greater incentives to care providers for outpatient facilities. Therefore, the outpatient setting is gaining more traction. Moreover, the surging demand for accountable care and clinical integration has led the hospitals to adapt as Accountable Care Organizations (ACOs). This results in reduced healthcare costs and improved quality of treatment. This is expected to promote the adoption of integrated healthcare services provided by IDNs and boost the growth of the market.

Furthermore, high prevalence of chronic diseases and disorders (such as heart-related conditions, cancer, diabetes, respiratory disorders, and neurological disorders) and the sudden outbreak of pandemics/epidemics are fueling the demand for healthcare services in U.S. According to the National Health Council, the number of people suffering from the chronic disease will increase from 157 million in 2020 to 171 million in 2030. Integrated delivery networks provide a comprehensive system for organizing chronic disease care with the provision of equitable and integrated health services. Thus, this makes treatment options easily accessible and profitable for patients suffering from chronic diseases.

Integration Model Insights

The vertical integration model led the market with a share of 62.0% in 2019. The horizontal integration model involves grouping of organizations that offer a similar type of care; whereas, vertical integration involves grouping of healthcare systems, which are offering different levels of care under one umbrella. Kaiser Permanente is a well-known example of a vertically integrated delivery system as it provides various services, such as pharmacy, surgery, laboratory, and health education institutes.

Such setup supports patients and increases opportunities for physicians at the primary stage to connect and speak with specialists, hospital staff, and others. Various collaborative initiatives are undertaken by key IDNs to improve their existing service portfolio along with the investments in research & development of new treatment options. For instance, HCA healthcare partnered with Galen College of Nursing (U.S.), which is expected to bolster the market growth. The introduction of new acts, such as The Medicare Access and CHIP Reauthorization Act (MACRA), by the government, is also likely to boost the market growth.

Service Type Insights

In 2019, acute care/hospital service segment held the largest share of 48% owing to the presence of a large number of hospitals offering a wide range of disease treatment services; high adoption of acute care/hospital facilities; and an increase in the number of surgeries performed in hospital infrastructure. Acute care/hospital settings offer patients with well equipped, advanced treatment facilities, along with trained healthcare professionals under one roof. This is further supported by satisfactory reimbursement guidelines for patients who regularly visit hospitals as compared to those looking for treatment at primary care centers.

In addition, various initiatives undertaken by IDNs to improve their service capability are propelling the growth of the acute care/hospital segment. For instance, HCA Healthcare Inc. made it public about its plan to build a training and development center in Pearland Town Center by the start of the year 2021. This facility will serve organizations’ ongoing clinical development and education as well as provide training to more than 7,000 nurses. Similarly, TH Medical, which is integrated with 65 hospitals, has taken up the possession of ST. Mary’s and Good Samaritan medical centers. The acquisition is aimed at upgrading the amenities. It is also expected to help increase the number of patient admission, thereby contributing to the segment growth.

Key Companies & Market Share Insight

Many major market participants, such as HCA Healthcare, Inc., have undertaken several strategic initiatives to gain competitive advantage. These strategies include partnerships, collaborations, regional expansion, and M&A. Some prominent players in the U.S. integrated delivery network market include:

• HCA Healthcare, Inc.

• CommonSpirit Health

• UnitedHealth group

• Kaiser Permanente

• University of Pittsburgh Medical Center

• Trinity Health

• Tenet Healthcare Medical

• CHI Health

• Ascension Health

• Providence St Joseph Health

U.S. Integrated Delivery Network Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country (U.S.) 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. Integrated Delivery Network (IDN) market report on the basis of integration model and service type:

• Integration Model Outlook (Revenue, USD Million, 2016 - 2027)

  • Vertical

  • Horizontal

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

  • Acute Care Hospitals

  • Primary Care

  • Long-term Health

  • Specialty Clinics

  • Other Services