U.S. Integrated Delivery Network Market Size, Share & Trends Analysis Report, By Integration Model (Vertical, Horizontal), By Service Type (Acute Care/Hospitals, Primary Care, Long-term Health, Specialty Clinics), And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. integrated delivery network market size was valued at USD 1,309.1 billion in 2022 and is anticipated to grow at a CAGR of 10.1% over the forecast period from 2023 to 2030. The need for affordable and well-organized healthcare systems is anticipated to increase with the growth of the elderly population, which is particularly susceptible to chronic diseases. In turn, this will accelerate the growth of the U.S. IDN market. The goal of the integrated delivery network (IDN), also referred to as the integrated delivery system (IDS), is to offer higher quality, more cost-effectiveness, and more effective healthcare services with an emphasis on the well-being of the patient. Hospitals, medical clinics, and physician groups are combined to form IDNs. Both healthcare providers and patients using the services have a lot to gain from these IDNs.

The COVID-19 pandemic has posed unprecedented challenges for health systems around the world, especially for integrated delivery networks (IDNs) that aim to provide coordinated and efficient care across different settings and providers. IDNs have had to adapt to the changing needs and demands of patients, communities, and health workers, while also facing financial and operational pressures. Some of the strategies that IDNs have adopted to cope with the pandemic include leveraging digital technologies for remote consultation, monitoring, and triage of patients, collaborating with other health system actors, and implementing policy measures to support integration.

For providers including hospitals, doctors, and physicians, IDNs offer 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 for 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, and financial services, among others) through a single entity at low costs.

With the introduction of the Affordable Care Act in 2010, 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 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, resulting in market growth.

Furthermore, the high prevalence of chronic diseases and disorders such as heart-related conditions, cancer, diabetes, respiratory disorders, and neurological disorders and the sudden outbreak of the pandemic 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 billion in 2020 to 171 billion 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 dominated the market with the highest revenue share of 65.0% in 2022 and is also expected to grow at the fastest CAGR of 11.7% over the forecast period from 2023 to 2030. Vertical integration integrated delivery networks (IDNs) offer comprehensive care throughout all stages of life, including end-of-life care and hospice support. These networks typically include a wide range of medical specialties, such as pediatricians, orthopedic surgeons, obstetricians and gynecologists, and other healthcare professionals. Additionally, they often include assisted living facilities to cater to patient needs. The primary objective of a vertical IDN is to provide a unified network that addresses patients' healthcare requirements throughout their lifespan. This is in contrast to horizontal IDNs, which consist of multiple dispersed facilities. In a horizontal integration model, multiple hospitals either regional or national are integrated together. These networks include organizations that provide a similar type of care and may include additional healthcare facilities integrated into them. HCA Healthcare is one of the largest for-profit hospital operators in the U.S. with around 185 hospitals that follows the horizontal integration model.

A standard example of a vertically integrated delivery system by Kaiser Foundation Health Plan, Inc., which offers diverse services encompassing pharmacy, surgery, laboratory diagnostics, 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.

Service Type Insights

The acute care segment dominated the U.S. integrated delivery network market with the largest revenue share of 49.5% in 2022 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, in May 2023, HCA Healthcare Inc. announced more than USD 300 billion investments in educating and training nurses clinically. This investment aims to improve the quality of care given to their patients while improving the delivery of treatment.

The long-term health segment is expected to grow at the fastest CAGR of 12.5% over the forecast period from 2023 to 2030 owing to the growing geriatric population leading to longer times of treatment and care needed. In June 2023, the University of Pittsburgh Medical Center began a new patient-guided and patient-involved study addressing various problems faced by the patients such as pain, fatigue, and depression while undergoing dialysis. This procedure enables the patient to set objectives and personalize the treatment to address any concerns they happen to endure.

Key Companies & Market Share Insights

The rise in the adoption of home tests has created a huge demand for integrated delivery networks. The high demand has created fierce competition in the regional market making space for new companies to venture into this field through advanced products and disruptive technology, opening up space for innovation in this field. For instance, in May 2023, CommonSpirit Health, a non-profit hospital chain, operating through its wholly-owned subsidiary Catholic Health Initiatives Colorado announced the acquisition of a collection of five hospitals based in Utah, U.S. Additionally, this acquisition encompasses more than 35 medical group clinics and establishes a robust and complete clinically integrated network of care providers. CommonSpirit Health has 145 hospitals and around 2,200 care sites in 23 states in the U.S.

Similarly, in January 2023, the United Health Foundation in collaboration with Children's Minnesota, has announced a three-year grant partnership valued at USD 3 million. This initiative aims to tackle pediatric issues such as asthma, vaccinations, and mental health among underserved children and families residing in the Twin Cities region. As part of this effort, the partnership will facilitate culturally responsive health interventions in combination with established community partners, as well as local public school districts. The following are some of the major participants in the U.S. integrated delivery network market:

• HCA Healthcare

• Ascension

• Kaiser Foundation Health Plan, Inc.

• UNITEDHEALTH GROUP

• Providence

• UPMC

• Trinity Health

• TH Medical

• CHSPSC, LLC

• CommonSpirit Health

U.S. Integrated Delivery Network Market Report Scope

U.S. Integrated Delivery Network Market Report Segmentation

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. integrated delivery network market on the basis of integration model and service type:

• Integration Model Outlook (Revenue in USD Billion, 2018 - 2030)

  • Vertical

  • Horizontal

• Service Type Outlook (Revenue in USD Billion, 2018 - 2030)

  • Acute Care

  • Primary Care

  • Long-term Health

  • Specialty Clinics

  • Other Services