U.S. Hospital Facilities Market (By Patient Services: Inpatient, Outpatient; By Facility Type: Private Hospitals, Public/Community Hospitals; By Service Type; By Bed Size) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. hospital facilities market was estimated at USD 1.57 trillion in 2023 and it is expected to surpass around USD 3.31 trillion by 2033, poised to grow at a CAGR of 7.73% from 2023 to 2032.

Key Pointers

• The outpatient services segment held the highest revenue share of 53% in 2023. 
• The cardiovascular segment led the market with a market share of 22% in 2023. 
• The acute care segment is anticipated to register the fastest CAGR of 8.84% over the forecast period.
• The 0-99 segment dominated the market in 2023 with a revenue share of 55%. 
• The 100-199 segment is anticipated to register the fastest CAGR of 8.20% over the forecast period. 
• The public/community hospitals segment dominated the market in 2022 with a share of 54%.

U.S. Hospital Facilities Market Overview

The U.S. hospital facilities market encompasses a diverse array of healthcare institutions, ranging from small community hospitals to large academic medical centers. As the cornerstone of the nation's healthcare infrastructure, these facilities play a vital role in providing comprehensive medical services to patients across the country.

U.S. Hospital Facilities Market Growth 

The U.S. hospital facilities market is experiencing notable growth, driven by several key factors. Firstly, the increasing demand for healthcare services due to population growth, aging demographics, and the prevalence of chronic diseases is fueling the expansion of hospital facilities across the country. Additionally, advancements in medical technology and treatment modalities are necessitating infrastructure upgrades and the construction of specialized facilities to meet evolving patient needs. Moreover, government initiatives aimed at improving access to healthcare, such as the Affordable Care Act, have stimulated investment in hospital infrastructure development. Furthermore, the growing emphasis on patient-centered care and quality outcomes is driving hospitals to invest in state-of-the-art facilities equipped with advanced amenities and technology. Lastly, strategic partnerships and mergers within the healthcare industry are fostering consolidation and driving investment in modernizing existing hospital facilities to enhance operational efficiency and patient satisfaction. Collectively, these growth factors are shaping the landscape of the U.S. hospital facilities market, positioning it for continued expansion and innovation in the years ahead.

Report Scope of the U.S. Hospital Facilities Market

U.S. Hospital Facilities Market Trends

• Rise of Outpatient Facilities: There's a notable shift towards outpatient care due to its cost-effectiveness and convenience. Hospitals are increasingly investing in outpatient facilities to accommodate the growing demand for ambulatory services, including urgent care centers, outpatient surgery centers, and diagnostic clinics.
• Emphasis on Telemedicine: The adoption of telemedicine continues to grow, driven by technological advancements and the need for remote healthcare services, especially in rural areas. Hospitals are integrating telemedicine capabilities into their facilities to provide virtual consultations, remote monitoring, and telehealth services, enhancing access to care and improving patient outcomes.
• Focus on Patient Experience: Hospitals are prioritizing patient-centered care by redesigning facilities to enhance the overall patient experience. This includes creating healing environments with comfortable amenities, private rooms, and integrated technology to empower patients and improve satisfaction levels.
• Integration of Smart Technology: The incorporation of smart technology is revolutionizing hospital facilities, enabling efficient operations and better patient care. From electronic health records (EHR) systems to IoT-enabled medical devices and automated workflow solutions, hospitals are leveraging technology to streamline processes, reduce errors, and enhance communication among healthcare teams.
• Sustainability Initiatives: Increasing awareness of environmental sustainability is driving hospitals to implement eco-friendly practices and design energy-efficient facilities. This includes utilizing renewable energy sources, reducing waste, and implementing green building standards to minimize the environmental footprint of hospital operations.
• Expansion of Specialty Centers: Hospitals are expanding their offerings by establishing specialized centers of excellence to cater to specific medical needs and attract patients seeking specialized care. These include cancer centers, heart institutes, orthopedic hospitals, and women's health centers, providing comprehensive services tailored to specific patient populations.

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 2023 with a revenue share of 53%. 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 2023 with a market share of 22%. 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 8.84% 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 2023 with a revenue share of 55%. 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 8.20% 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 2023 with a share of 54%. 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 Key Companies

• 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 Segmentations:

By Patient Service 

• Inpatient
• Outpatient

By Facility Type 

• Private Hospitals
• State Owned & Federal Hospitals
• Public/Community Hospitals

By Service Type 

• Acute Care
• Cardiovascular
• Cancer Care
• Neurorehabilitation & Psychiatry Services
• Pathology Lab, Diagnostics, and Imaging
• Obstetrics & Gynecology
• Others

By Bed Size 

• 0-99
• 100-199
• 200-299
• 300-more