Global health care spending is projected to increase from US$ 6.5 Trn in 2012 to US$ 10 Trn in 2020 at a compound annual growth rate of 5.5%. Hospital services account for a significant proportion of health care spending. In 2015, around US$ 3.2 Trn was spent on health care in the U.S., with hospital services accounting for 32%, or over US$ 1 Trn.
Key drivers of hospital services are aging population, rise in prevalence of chronic diseases, increase in disposable income specifically in developing countries, and growth in penetration of health insurance. People aged 60 years and above are projected to account for 17% of the global population by 2030, up from the present 12%. Moreover, non-communicable diseases accounted for around 70% of global deaths in 2015 (Source: WHO and Lancet).
The hospital infrastructure is still underdeveloped in emerging economies in Asia Pacific, Africa, and Latin America. In India, the number of hospital beds per 1,000 population is less than 1, which is well below the World Health Organization (WHO) average of around 2.7 and the Organization for Economic Co-operation and Development (OECD) average of over 5. This gap between demand and supply of hospital beds in emerging economies has led to significant growth (organic and inorganic) of the private hospitals market. Apollo Hospitals Enterprise Ltd., India’s largest private hospital services operator, has expanded from a 150-bed facility in 1983 to providing over 9,500 beds in 69 hospitals.
Based on ownership of hospitals, the global hospital services market can be segmented into public hospitals and private hospitals. Private hospitals can be divided into standalone private hospitals and private hospital groups. The public health care system is overburdened in several countries where universal health care coverage is available for all citizens. Long waiting time and poor quality of health care in public hospitals are factors driving the private hospital services market. For example, the Government of Indonesia plans to cover all citizens under the National Health Insurance (JKN) program by 2019. Private hospital groups such as The Siloam Hospital Group and Mitra Keluarga have adopted aggressive strategies to benefit from the surging demand for health care services in the country. The Siloam Hospital Group aims to double the number of member hospitals to 50 by 2019.
In terms of region, the global hospital services market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Spending on hospital services is high in North America because the U.S. accounts for almost 40% of the global healthcare spending. Asia Pacific is also expected to account for a significant proportion of the global hospital services market with healthcare spending in China projected to cross US$ 1 Trn by 2020.
Based on type of services, the global hospital services market can be classified into inpatient services and outpatient services. Inpatient and outpatient services can be segmented based on type of specialty into cardiovascular, orthopedics, neurology, oncology, gastroenterology, and others.
Key private hospital groups operating in the global hospital services market include Ramsay Health Care, IHH Healthcare Berhad, Apollo Hospitals Enterprise Ltd., China Resources Phoenix Healthcare Holdings Company Limited, Helios, Community Health Systems, Hospital Corporation of America, Ascension Health, and Tenet Healthcare.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.