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2018 Hospitals and Health Systems Market Report

  • ID: 4655462
  • Report
  • September 2018
  • Region: Global
  • 40 Pages
  • Health Industry Distributors Association (HIDA)
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The 2018 Hospitals And Health Systems Market Report (formerly Acute Care) provides analysis of market trends and reviews the impact of legislative changes on industry outlook.

  • By 2018, hospital care accounted for the largest share of U.S. healthcare spending at $1.2 trillion (32%)
  • In 2017, 33% of merge and acquisition activity involved health systems; 19% involved hospitals
  • As of 2017, 30% of hospitals were losing money.


National spending on healthcare increased to $3.6 trillion by 2018, representing 18% of U.S. total gross domestic product (GDP). Growth in hospital spending increased 4.1%, 0.8% lower than the growth in overall healthcare spending.

As of 2017, 30% of hospitals were losing money. Hospital executives cite government and payer constraints allowing costs to rise faster than revenues, and increased labor costs due to shortages.

In 2017, the ratio of hospital credit downgrades to credit upgrades exceeded that of the 2008 financial crisis.

One-Third Of 2017 Healthcare M&A Activity Involved Health Systems

In a 2018 survey, 71% of healthcare executives reported an expected increase in M&A activities. The survey, based on 2017 activity, reported 33% of recorded deals involved health systems, and 19% involved hospitals. Each year, there are an average of 88 merger and acquisition (M&A) deals involving hospitals and health systems.

Both acquiring and acquired entities cited the top reasons for pursuing M&A as: improving access to capital, increasing market share, and delivering care more efficiently. Executives report it takes two years to reach these goals. Despite the lag in desired outcomes, executives largely agreed that M&Aactivity had an overall positive effect on their organizations.

Who Should Buy This Report:

  • Healthcare investors
  • ASC management companies
  • Health systems
  • Healthcare distributors
  • Healthcare manufactures
  • Group Purchasing Organizations
  • Government Health Agencies
  • State Health Agencies
  • Educational Hospitals
  • Healthcare Providers
Note: Product cover images may vary from those shown
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  • Executive Summary
  • Healthcare Spending Projected To Reach $5.5 Trillion By 2025
  • Hospital Price Growth Outpaces Other Settings
  • Medicare Margins Drive Down All-Payer Margins
  • One-Third Of Hospitals Are Losing Money
  • Financial Outlook Negative For Half Of U.S. Hospitals
  • Not-For-Profit Hospital Credit Downgrades Increase In 2017
  • Hospitals Turn To Investments To Improve Financial Outlook
  • Hospital Profit As a Percent Of Revenue Down 2.5% From 2014 - 2017
  • Number Of Hospitals Continues To Decline
  • Hospitals Struggle To Find Employees
  • Inpatient, Outpatient Volumes Up In 2016
  • Projected Volumes Vary By Service
  • Acuity Continues To Increase
  • ER Volumes Unchanged By ACA
  • Medicare, Medicaid Cover 75% Of ER Visits
  • ER Spending Doubles In 7 Years
  • Uncompensated Care Costs Down 17.5%, 2013 - 2016
  • Individual Mandate Repeal Shifts Projected Costs, Coverage
  • More Hospitals Close Than Open 2010 - 2016
  • Average Of 88 Hospital M&A Deals Annually
  • One-Third Of M&A Activity Involves Health Systems
  • Financial Goals Top Of Mind During M&A
  • M&A Benefits Take Two Years To Realize
  • One-Third Of Systems Report Improved Patient Outcomes After M&A
  • Most Executives Find M&A Outcome Positive
  • Hospitals And Health Systems Value Distribution
  • Health System, Hospital Affiliation Seen As A Positive By Consumers
  • Nearly All Hospitals Use EHRs
  • Healthcare Data Breaches Projected To Increase
  • Medical Devices Vulnerable To Cyber Attacks
  • Population Health Important To Hospitals But
  • Investment Lags
  • Provider-Owned Plans Largely Unprofitable
  • Payer-Provider Partnerships Focus On Value-Based Compensation
  • Value-Based Purchasing Bonuses Increase In 2018
  • HAC Penalties Down In 2018
  • More Hospitals Penalized Under HRRP In 2018
  • 6% Of Hospitals Receive 5-Star Ratings In 2018
  • Free-Standing ERs Eyed For Cuts
  • Future Uncertain For Micro-Hospitals
  • GHX Reports $27.2 Billion In Hospital Sales Through Distribution In 2017
  • GHX Lists Top Acute Care Products Sold Through Distribution
Note: Product cover images may vary from those shown
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