CMS Projects Hospital Services to Grow By at Least 6% per Year through 2014

Research and Markets has announced the addition of Hospital Systems Market Overview to their offering.

The Hospital Systems Market Overview provides the information and analysis you need to gain an understanding of the issues and trends affecting hospitals. The report also identifies approximately 25 market participants and provides information on each company which includes (when available): company background, company strategy, facilities, financial and statistical information, and recent activities.

The Centers for Medicare and Medicaid Services projected total U.S. healthcare spending to grow by 7.3% in 2005, by an average of 7.4% annually from 2006 through 2008 and by 6.9% annually from 2009 through 2014. By these estimates, healthcare expenditures will account for approximately $3.6 trillion, or 18.7% of the total U.S. gross domestic product, by 2014. Hospital services is the largest single category of healthcare at 30% of total healthcare spending in 2004, or $570 billion, as reported by CMS.

The CMS projects the hospital services category to grow by at least 6.0% per year through 2014. It expects growth in hospital healthcare spending to continue due to the aging of the U.S. population and consumer demand for expanded medical services. The U.S. hospital industry is broadly defined to include acute care, rehabilitation, and psychiatric facilities that are either public (government owned and operated), not-for-profit private (religious or secular), or for-profit institutions (investor owned).

During the late 1980s and early 1990s, there was significant industry consolidation involving large, investor owned hospital companies seeking to achieve economies of scale. While consolidation activity in the hospital industry is continuing, the consolidations are primarily taking place through mergers and acquisitions involving not-for-profit hospital systems.