Hospitals and Outpatient Care Centers Global Market Report 2021: COVID-19 Impact and Recovery to 2030

Major companies in the hospitals and outpatient care centers market include National Health Service; Kaiser Permanente; Fresenius Medical Care AG & Co. KGaA; DaVita Inc. and Universal Health Services, Inc.

The global hospitals and outpatient care centers market is expected to grow from $3384.21 billion in 2020 to $3784.65 billion in 2021 at a compound annual growth rate (CAGR) of 11.8%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $4959.61 billion in 2025 at a CAGR of 7%.

The hospitals and outpatient care centers market consists of sales of hospitals and outpatient care services by entities (organizations, sole traders and partnerships) that are engaged in providing diagnostic and medical treatment to patients with a wide range of medical conditions. Clinics offer medical care or treatment that does not require any overnight stay in a hospital or medical facility. Outpatient care may be carried out in a medical office or at hospital. The hospitals and outpatient care centers market is segmented into hospitals and outpatient care centers.

North America was the largest region in the global hospitals and outpatient care centers market, accounting for 40% of the market in 2020. Asia Pacific was the second largest region accounting for 26% of the global hospitals and outpatient care centers market. Africa was the smallest region in the global hospitals and outpatient care centers market.

Mobile and IoT technologies are being implemented by hospitals to provide information to various stakeholders in the hospital ecosystem. This technology offers real time visibility of patient health through active and passive data collection. This technology can monitor medical conditions and prevent life threatening diseases. Data generated through I0T devices is becoming critical for patient care managers, patients to diagnose, track and treat medical conditions. Major hospitals adopting IoT technology in the USA include HCA, Mercy Virtual Care Center and Kaiser Permanente. Thus, this technology enables healthcare providers to make accurate and informed decisions on patients’ health.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the hospitals and outpatient care centers market in 2020 as governments-imposed lockdowns and restricted the movement of people and goods to contain the transmission. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. The pandemic had a detrimental effect on the hospitals and outpatient care centers market due to disruptions in the supply chain and decrease in the footfall as patients remained cautious about visiting hospitals. The postponement of surgeries that are not urgent has resulted in a decline in revenues of the hospitals and outpatient care centers. According to the Investment information and credit rating agency (ICRA), Limited, an India based independent and professional agency, private hospitals and healthcare services companies in India are expected to suffer a 15% to 20% drop in revenues in the financial year 2021. The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the hospitals and outpatient care centers market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy.

Access to healthcare services in developing countries is expected to improve. Effective implementation of health plans is the core reason for the improvement in healthcare access in many developing regions such as India, China and many Latin American countries. Some of the country-specific health reforms which are set to improve healthcare access are China’s urban resident basic medical insurance and new rural cooperative medical insurance schemes, Brazil’s unified health system and Mexico’s popular health insurance. Hence, increasing access to healthcare services is expected to be a major driver of the hospitals and outpatients care centers market.