The U.S. hospital facilities market was estimated at USD 1.46 trillion in 2022 and it is expected to surpass around USD 3.07 trillion by 2032, poised to grow at a CAGR of 7.73% from 2023 to 2032.
Report Scope of the U.S. Hospital Facilities Market
|Market Size in 2022||USD 1.46 trillion|
|Revenue Forecast by 2032||USD 3.07 trillion|
|Growth rate from 2023 to 2032||CAGR of 7.73%|
|Forecast Period||2023 to 2032|
|Market Analysis (Terms Used)||Value (US$ Million/Billion) or (Volume/Units)|
|Companies Covered||The Johns Hopkins Hospital; Mayo Clinic Health System (Mayo Clinic); Cleveland Clinic; Cedars Sinai; The General Hospital Corporation (Massachusetts General Hospital); The Regents of The University of California (UCSF Health); NewYork-Presbyterian Hospital; Brigham And Women's Hospital; UCLA Health; Northwestern Memorial Hospital|
The growing need for better patient care and the introduction of novel healthcare technology are among the factors expected to boost the demand for well-equipped hospitals in the forecast period. According to the CDC, 6 out of 10 adults in the U.S. have a chronic disease, such as cancer, stroke, heart disease, diabetes, and others including 4 in 10 adults who have 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 healthcare costs and are expected to drive the market growth 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 the 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 2022, the U.S. government spent USD 12,455 per person on healthcare. As the number of patients keep growing, the country’s healthcare expenditure is expected to grow rapidly, in turn favoring the overall market growth.
Hospitals can treat various conditions, including heart-related, neurological, infectious, mental health, and gastrointestinal. The increasing prevalence of these illnesses leads to more frequent hospital visits. The American Hospital Association (AHA) reported that over 34 billion patients were admitted to hospitals in the U.S. in 2022. In addition, the growing number of elderly people needing emergency care contributes to the overall rise in hospital visits and drives market growth.
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 propel the market growth during the forecast period. For instance, Cleveland Clinic and PathAI announced a 5-year strategic collaboration to leverage better patient care and increase AI-powered pathology to enhance diagnostic accuracy & treatment selection.
The COVID-19 pandemic had a moderate impact on hospitals and patients seeking medical treatment. A decline in the number of patients visiting hospitals in the U.S. was observed in the initial few months of the pandemic. Based on the AHA’s COVID-19 Financial Impact Report Estimates, U.S. hospitals and health systems faced significant losses from March 1, 2020, to June 30, 2020. They lost approximately USD 202.6 billion, which averages around USD 50 billion per month. During the same period, the estimated collective loss for hospitals and health systems due to COVID-19 hospitalizations, including payments for COVID-19 patients, was around USD 36.6 billion.
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 in 2022 with a revenue share of 52%. 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 the high cost of care for inpatients. The growing population, rise in life expectancy to more than 75 years, and increasing prevalence of lifestyle illnesses in the U.S. have increased the need for continuous & coordinated care for patients recuperating from an acute accident or sickness. As a result of these factors, the inpatient services segment is likely to grow in the market over the forecast period. However, the segment growth is projected to be moderate 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 in 2022 with a market share of 21%. The segment is expected to dominate the market throughout the forecast period. Growing adoption of a sedentary lifestyle has led to a rise in the incidences of obesity in the U.S., thereby, increasing the risk of heart disease. Thus, the increasing number of patients suffering from CVDs is expected to propel segment growth.
The cancer care segment is anticipated to register a significant CAGR over the forecast period. Cancer is the second leading cause of death in the U.S. after CVD. The relapsing nature of the disease and frequent chemotherapy sessions are contributing to an increase in the number of hospitalizations due to cancer. According to the American Cancer Society, around 1.9 billion new cancer cases are expected to be diagnosed in the U.S. in 2022. The increasing cost of cancer treatment, the rising number of specialized oncology departments & oncologists, and a supportive reimbursement framework are among the factors expected to propel segment growth.
The acute care segment is anticipated to register the fastest CAGR of 8.83% over the forecast period owing to the increasing demand for primary care services and 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.
Bed Size Insights
Based on bed size, the market is segmented into 0-99, 100-199, 200-299, and 300-more. The 0-99 segment dominated the market in 2022 with a revenue share of 54%. This segment comprises small hospitals that primarily serve rural or remote areas with low population density. These hospitals play an important role in providing access to basic healthcare services to communities although some hospitals in this segment fulfill specialized needs of the services based on the local population. Their primary focus is on delivering essential medical care.
The 100-199 segment is anticipated to register the fastest CAGR of 8.19% over the forecast period. These hospitals are better equipped to offer a wider range of services and specialties compared to the smaller facilities. With a higher bed capacity, they can accommodate more patients and address a broader spectrum of medical needs.
The 399 and more segment is anticipated to witness a lucrative CAGR over the forecast period. They are equipped with modern technology, specialized medical staff, and research capabilities, driving advancements in medical science. These are the factors attributed to the growth of this segment.
Facility Type Insights
In terms of facility type, the market is segmented into public/community hospitals, state owned & federal hospitals, and private hospitals. The public/community hospitals segment dominated the market in 2022 with a share of 53%. For instance, community hospitals had a total of 789,354 beds. Community hospitals hold the highest number of patient beds and tend to 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 rise in inpatient admissions and the financial support from business groups is expected to drive the segment growth.
The state-owned and federal hospitals segment held the second prominent position in the market. The 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 healthcare services to patients who have limited access to quality care. According to AHA, in 2022, there were 207 federal hospitals in the U.S. Increasing access to public healthcare is expected to drive the segment growth.
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.
U.S. Hospital Facilities Market Segmentations:
By Patient Service
By Facility Type
By Service Type
By Bed Size