Acute Hospital Care Market

The global Acute Hospital Care Market is valued at USD 3.26 Trillion in 2023 and is projected to reach a value of USD 5.43 Trillion by 2032 at a CAGR (Compound Annual Growth Rate) of 5.9% between 2024 and 2032

Key Highlights

• North America dominated the market in 2023, with 57.2% market share driven by the advanced technology and increased government support for R&D
• Asia Pacific is anticipated to register the fastest growth rate during the forecast period
• In 2023, the Emergency Care segment took the lead in the market, contributing 54.1% revenue share due to the high frequency of accidents, burns, heart attacks, trauma, strokes, acute infections, and similar conditions
• The General Acute Care Hospitals segment dominated the market and accounted for revenue share of 61.3% in 2023, driven by the high volume of patients requiring comprehensive medical treatment, including emergency care, surgical procedures, and critical care services
• Based on Service, the Intensive Care Unit (ICU) segment dominated the market in 2023, with 58.5% of the market share due to critical need for specialized care for patients with severe, life-threatening conditions that require constant monitoring and advanced medical interventions
• The events such as the COVID-19 pandemic have underscored the importance of preparedness, resilience, and capacity building in Acute Hospital Care systems, prompting investments in healthcare infrastructure and crisis management strategies

Regional Overview

North America Dominated Sales with a 57.2% share in 2023. North America leads the global market due to a growing patient population, advanced technology, increased government support for Research & Development (R&D), and substantial healthcare spending. Additionally, the region's market growth is driven by heightened R&D activities and the presence of major market players. Furthermore, the government is implementing supportive measures to control rising healthcare costs. CMS estimates from 2019 indicate that there are around 4,749 acute hospitals in the US.

The Asia Pacific region is experiencing the fastest growth during the analysis period, driven by rapid advancements in healthcare technologies, significant healthcare expenditure, and a large patient population. The increasing demand for Acute Hospital Care in countries like China, India, & South Korea is expected to boost overall market growth. Furthermore, the rising need for high-quality equipment in the healthcare industry for early diagnosis and treatment is propelling the market demand.

U.S. Market Overview

The market in the United States, with a valuation of USD 1.15 Trillion in 2023, is projected to reach around USD 2 Trillion by 2032. A significant Compound Annual Growth Rate (CAGR) of 6.4% from 2024 to 2032 is projected in this forecast. According to the American Hospital Association, the United States has a network of 6,120 hospitals. Most of these, 5,129 in total, are community hospitals with diverse ownership structures, including not-for-profit, for-profit, and government entities. These hospitals provide 916,752 staffed beds and manage over 33.6 million admissions each year, highlighting their essential role in the country's healthcare system.

Medical Condition Overview

In 2023, the Emergency Care segment dominated the global market with 54.1% of revenue share. Based on Medical Condition, the global market is segmented into Emergency Care, Trauma Care, Acute Care Surgery, Short-term Stabilization, and Others.

This is due to the high occurrence of accidents, burns, heart attacks, trauma, strokes, acute infections, and similar conditions. Additionally, favorable reimbursement and coverage policies established by various governments support the growth of this segment. In the United States, injuries result in over 150,000 deaths and more than 3 million non-fatal injuries annually. Globally, injuries cause more than 5 million deaths each year. The high prevalence of trauma-related disability and mortality is expected to increase the demand for emergency services.

Acute care surgery, which is increasingly replacing trauma care, is expected to register the fastest compound annual growth rate (CAGR) from 2024 to 2032. This relatively new surgical specialty combines training in surgical critical care, trauma surgery, and emergency general surgery to evaluate and treat patients with general surgical problems. Most emergency cases requiring acute care surgery involve abdominal disorders such as acute appendicitis, diverticulitis, cholecystitis, intestinal blockage, pancreatitis, intra-abdominal infection, intestinal ischemia, incarcerated hernias, and ruptured internal organs.

Short-term stabilization involves providing integrated medical and mental interventions in a medical setting on a short-term basis, tailored to the severity of the emergency—whether mild, moderate, or severe. Prompt medical attention is critical if an individual has consumed a toxic amount of alcohol or medications, such as opiates. Short-term stabilization can also be beneficial in psychiatric emergencies. Many psychiatric patients injure themselves due to stress, worry, and substance addiction, among other factors. These factors are anticipated to drive segment growth during the forecast period.

Key Government Initiatives

• Launch and Success of Acute Hospital Care at Home Waiver: In response to the COVID-19 pandemic, the Centers for Medicare & Medicaid Services (CMS) introduced the Acute Hospital Care at Home waiver. A study published by JAMA revealed promising outcomes: out of 11,159 patients treated at home from November 2023 to March 2023, only 7.2% needed hospital transfer, and only 0.34% (38 patients) experienced unexpected deaths, mostly due to COVID-19 progression.
• Data Collection and Legislative Requirements: For the continuation of the Acute Hospital Care at Home program beyond 2024, legislative action is necessary. The Centers for Medicare and Medicaid Services are collecting data on the initiative through the Research and Data Assistance Center (ResDAC). Data from November 2020 to March 2023 is being analyzed to evaluate the program's effectiveness. Hospitals reported data to CMS weekly or monthly.
• Boston Medical Center's Remote Acute Care Unit: Boston Medical Center has launched a new hospital-at-home program to enhance healthcare access and equity. This initiative involves daily clinical home visits and remote monitoring using Medically Home technology, targeting conditions like pneumonia, dehydration, and heart failure for improved patient outcomes and cost-effective care. This program aims to shorten recovery times and reduce complications.
• CMS Waiver and Clinical Outcomes: Researchers published findings in the Annals of Internal Medicine on the clinical outcomes of the CMS Acute Hospital Care at Home waiver. By lifting certain Medicare Hospital Conditions of Participation, approved hospitals can provide inpatient care in patients’ homes. As of December 2023, 308 hospitals across 37 states are approved for the waiver. The study examined patient outcomes, including mortality, hospital readmissions, and skilled nursing facility use.
• Cost and Innovation in U.S. Healthcare: Despite annual hospital care costs exceeding $1 trillion, the U.S. has relatively poorer health outcomes compared to similar nations. The Hospital at Home (HaH) program, offering acute-level care at home, is a promising model to reduce costs and improve outcomes. Technological advancements in remote patient monitoring, wearable sensors, and health information technology have driven the program's progress, especially during the COVID-19 pandemic.
• CMS Research on Acute Hospital Care at Home: CMS research, published in the Journal of the American Medical Association Health Forum, highlighted the program’s low mortality rate and minimal complications related to escalations back to the hospital. The program, originally practiced by Johns Hopkins since 2002, was expanded during the pandemic, with CMS granting waivers for home-based acute care due to hospital bed shortages.
• Extension and Future of the Program: Launched under section 1135 of the Social Security Act, the AHCAH initiative allowed hospitals to provide inpatient-level care at home by waiving specific requirements. The Consolidated Appropriations Act, 2023, extended these waivers until December 31, 2024. The program’s future depends on further Congressional action for its continuation beyond 2024. The continuation of the AHCAH initiative beyond December 31, 2024, is contingent on further Congressional action, as specified by CMS.

Key Trends

1. Rapid advancements in medical technology, including digital health solutions, AI-driven diagnostics, telemedicine, & robotic-assisted surgeries, are transforming Acute Hospital Care delivery.
2. There's a growing preference for ambulatory care over traditional inpatient hospitalizations, driven by cost-effectiveness, patient convenience, and advances in outpatient treatment options.
3. Hospitals are increasingly emphasizing patient-centered care models that prioritize personalized treatment plans, improved patient experience, and better outcomes.
4. Healthcare providers are leveraging big data analytics & predictive analytics to enhance clinical decision-making, optimize resource allocation, and improve operational efficiencies in acute care settings.
5. Increasing healthcare spending globally, particularly in emerging markets, is driving expansion and modernization of acute hospital facilities to meet growing demand and improve healthcare access.
6. Evolving regulatory frameworks and changes in reimbursement policies influence hospital operations, pricing strategies, & adoption of new technologies in acute care settings.

Premium Insights

According to the Society of Critical Care Medicine, around 20% of acute care admissions and 58% of emergency department visits lead to a transfer to an Intensive Care Unit (ICU), thus broadening the critical care segment of the acute care market. Acute care services focus on promoting, restoring, and maintaining patient health. These systems are designed for quick access, providing vital first-line health services to patients in emergencies or critical conditions, encompassing preventive, curative, rehabilitative, and palliative care. Acute care telemedicine is an emerging area within healthcare, offering virtual specialist assistance during emergencies.

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Market Dynamics

The overall market growth is primarily driven by the rising prevalence of chronic diseases, increasing inpatient volume, and favorable reimbursement policies through Medicaid and Medicare. Factors such as a higher incidence of trauma, a growing geriatric patient population, increasing demand for acute care hospitals, and unmet medical needs in developing countries are also projected to boost market growth. The surge in inpatient volumes due to the global prevalence of chronic diseases is pushing hospitals to reduce Turnaround Time (TOT) and Length of Stay (LOS). Overcrowded emergency rooms, with average wait times of 55 minutes, have led more patients to opt for high-deductible health plans, thereby increasing the demand for acute care hospitals, especially for patients with severe medical conditions.

The uneven distribution of healthcare facilities and resources between urban and rural areas intensified the pandemic's impact on the industry. Non-COVID-19 healthcare utilization decreased due to factors such as state and federal guidance to preserve hospital bed capacity, patient reluctance to seek in-person care, and the shift to telehealth. The increased health spending, favorable reimbursement policies, and strong government support is influencing the market growth. For example, in September 2021, Tenet Healthcare Corporation and Cigna Corporation announced the extension and expansion of their network access with a new multi-year contract. This agreement will ensure that Cigna customers have continued in-network access to Tenet’s hospitals, physician clinics, & outpatient centers, including the ambulatory facilities operated by United Surgical Partners International, which are consolidated in Tenet’s financial statements, through 2025.

Competitive Landscape

The industry is highly fragmented with the presence of various multinational and local healthcare facilities. Industry players are focusing on collaborations and merger, industry expansion, and acquisition strategies to gain a competitive edge and expand their business footprint.

For instance, Ramsay Health Care is extending its mental health services into the community via Australia's rapidly expanding national psychology business. In the past year, Ramsay has launched 11 psychology clinics nationwide and aims to establish 30 clinics, employing over 200 psychologists in the next two years. Carmel Monaghan, CEO of Ramsay Australia, said that this initiative builds on Ramsay's reputation as a leading provider of acute mental health care, broadening access to mental health services. The response has been very positive, with almost 10,000 consultations carried out since the clinics started operating.

Recent Market Developments

Expansion in Behavioral Health Services: Shannon Medical Center Acquires River Crest Hospital

• In June 2024, Shannon Medical Center has entered into a contract to purchase River Crest Hospital, a San Angelo-based behavioral health center, from Universal Health Services, Inc. River Crest Hospital, established over three decades ago, operates as an 80-bed facility offering comprehensive behavioral health and substance use disorder programs for children, adolescents, adults, and military personnel. Shannon currently operates a 22-bed regional inpatient psychiatric facility catering to adults and senior adults, alongside outpatient behavioral health programs.

Joint Venture Initiative: Mercy Health - Youngstown and Lifepoint Behavioral Health

• In April 2024, Mercy Health - Youngstown and Lifepoint Behavioral Health, a division of Lifepoint Health, have begun construction on a new behavioral health hospital. This facility is the outcome of a joint venture partnership announced last year between Mercy Health - Youngstown and Lifepoint Behavioral Health. Spanning 61,900 square feet with 72 beds, the hospital will be named Mercy Health Behavioral Hospital. It will offer comprehensive inpatient & outpatient services, including partial hospitalization and intensive outpatient programs, tailored for adults and geriatric patients dealing with a wide spectrum of mental health conditions such as depression, anxiety, PTSD, bipolar disorder, psychosis, personality disorders, and dual diagnosis involving substance abuse.

Sustainability Milestone: IHH Healthcare Malaysia's Solar Power Initiative

• In April 2024, IHH Healthcare Malaysia achieved a significant milestone by initiating a broad renewable energy project across its network, making it the first private healthcare provider in Malaysia to adopt solar power. The installation of solar panels at its hospitals aligns with Malaysia's efforts to decrease reliance on fossil fuels and support global initiatives addressing climate change.

Strategic Transaction: Tenet Healthcare Corporation's Sale to Adventist Health

• In February 2024, Tenet Healthcare Corporation has finalized an agreement with Adventist Health to sell two Tenet hospitals and associated operations in San Luis Obispo County. Additionally, Tenet's Conifer Health Solutions subsidiary will provide revenue cycle services for Adventist Health. The transaction encompasses Sierra Vista Regional Medical Center and Twin Cities Community Hospital, along with affiliated physician practices and related operations. The agreement amounts to approximately $550 million, resulting in after-tax proceeds of about $450 million for Tenet.

Collaborative Healthcare Project: UCI Health and Lifepoint Rehabilitation's New Rehabilitation Hospital

• In February 2024, UCI Health and Lifepoint Rehabilitation, a division of Lifepoint Health, commenced construction on a new inpatient rehabilitation hospital in Irvine, California. The UCI Health Rehabilitation Hospital, a collaborative venture between UCI Health and Lifepoint Rehabilitation established in 2022, will span 68,000 square feet across two stories. It will operate independently as a hospital with 52 beds, featuring specialized structural designs across all units to cater to patients requiring acute inpatient rehabilitation for conditions such as stroke, traumatic brain and spinal cord injuries, amputations, and various other injuries and disorders.

The global Acute Hospital Care market can be categorized as Medical Condition, Facility Type, Service, and Region.