Hospitals

 

At Healthcare Opportunities Investment Advisors, we see hospitals as a primary provider of healthcare in the United States, the Hospitals industry is expected to grow an annualized 3.6% to $1.1 trillion over the five years to 2019, with an expected increase of 3.1% in 2019 alone. This traditionally fragmented industry has recently begun consolidating, largely due to the pressures of healthcare reform. Demand for industry services has steadily grown over the past five years, as healthcare reform legislation broadened insurance coverage and the sinking unemployment rate increased disposable income. To maintain an advantaged position in this competitive industry, hospitals seek the most skilled and specialized healthcare professionals, thereby increasing labor costs. However, hospitals have also contended with nurses.

Market Share in the US

The Hospitals in the US industry has no companies with major market shares. Get the full report to find out why.

What Products & Services Make Up This Industry in the US?

The Hospitals in the US industry consists of Inpatient care, outpatient care and emergency room visits.

Industry SWOT Analysis

The industry is exposed to the following threats and opportunities:

• Federal and state healthcare funding, as well as the government-determined terms of access to Medicare and Medicaid, affect industry demand and prices. Increased government healthcare funding will increase reimbursement for industry services, thereby raising industry revenue. Federal funding for Medicare and Medicaid is expected to increase in 2019, however, planned cuts to Medicare Disproportionate Share Hospital (DSH) payments pose a potential threat to some industry hospitals.
• People with higher incomes typically spend more on healthcare, including hospital services, and are more likely to have private health insurance to provide coverage for hospital services, boosting industry demand. Disposable income is expected to increase in 2019, representing a potential opportunity for the industry.