Under the weather: Restrictions on government expenditure have limited revenue growth

Revenue in the Hospitals industry is expected to rise at a compound annual rate of 0.8% over the five years through 2018-19 to reach £74.9 billion, following an expansion of 0.1% in the current year. This growth has been stimulated by booming demand for the industry's services from an ageing, expanding population. Public expenditure on health care has necessarily risen to satisfy demand. However, falling consumer confidence in the wake of the EU referendum could negatively affect private health-care expenditure.Through the National Health Service (NHS), the government is responsible for administering the vast majority of hospitals nationwide. As a result, the size of the government grants that finance the NHS significantly affect total industry revenue...read more.

Industry Statistics & Market Size
Revenue
£74.9bn
Annual Growth 14-19
0.8%
Forecast Growth 19-24
Profit
Employment
825,287
Businesses
254
Market Share of Companies

Industry Threats & Opportunities

  • An ageing and expanding population has supported demand over the past five years
  • An increase in the size of the older population has raised demand for services
  • Potential controls on immigration from Europe could lead to staff shortages and higher wages costs
  • Industry Report - Industry Products Chapter

    The Hospitals industry provides acute and planned health care to both inpatients and outpatients. The public sector provides free hospital services to patients and accounts for an estimated 90% of the UK hospital market, with the private sector accounting for the remainder.Ordinary and planned surgery bedsOrdinary and planned surgery beds constitute the largest segment and are estimated to account for 45.3% of total revenue. This segment covers the admission of patients for scheduled surgery and treatment given after a referral from a general or specialist medical practitioner. Treatment for patients suffering from chronic illnesses is also included in this segment. Inp...purchase to read more.

    Additional Insights for the Hospitals Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hospitals Industry are

  • Access to highly skilled workforce
  • Proximity to key markets
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Population aged 65 years and over and Real government consumption expenditure in the Hospitals industry impact industry performance..

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    What's in this report

    What is the Hospitals Industry?

    Industry players provide medical, diagnostic and treatment services at both general and specialised hospitals. General hospitals include civilian and military hospitals, not-for-profit operations and university and prison hospitals. Specialised hospitals include mental health and substance abuse hospitals, hospitals for infectious diseases, maternity hospitals and sanatoriums. Medical nursing homes and ambulance transport services are not part of the industry.

    Industry Products
  • Ordinary and planned surgery beds
  • Day-care and outpatient services
  • Emergency care beds
  • Maternity beds
  • Industry Activities
  • Providing medical and paramedical services
  • Providing laboratory and technical facilities, including radiology and anaesthetic services
  • Providing accident and emergency services
  • Operating pharmacies
  • Providing family planning
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population aged 65 years and over
  • Real government consumption expenditure
  • Real private consumption expenditure
  • Number of births

  • Current Performance
  • Funding constraints
  • Population pressure
  • Staff shortages
  • Private hospitals
  • Chart: Revenue Growth

  • Industry Outlook
  • Funding concerns
  • Migrant labour
  • A bitter pill to swallow
  • Table: Hospitals Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hospitals Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Insurance
  • General Medical Practices
  • Specialist Medical Practices
  • Consumers

  • Key Selling Industries
  • Diagnostic & Ambulance Services
  • General Building Cleaning
  • Medical & Dental Instrument Manufacturing
  • Pharmaceutical Preparations Manufacturing
  • Specialist Medical Practices
  • Temporary-Employment Placement Agencies

  • Products & Services
  • Ordinary and planned surgery beds
  • Day-care and outpatient services
  • Emergency care beds
  • Maternity beds
  • Chart: Hospitals Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 15 and 64
  • People aged 65 and over
  • People aged 14 and under
  • Chart: Major Market Segmentation for the Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Hospitals

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hospitals Industry

  • Industry Globalization
    National Health Service,
  • Table: National Health Service - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hospitals Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hospitals Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Clinical Commissioning Group (Ccg)
  • Replaced PCTs in England and assumed responsibility for the commissioning of regional NHS services.
  • Inpatient
  • A patient that is admitted to hospital and stays overnight or for longer.
  • Outpatient
  • A patient who is not hospitalised overnight but visits a hospital, clinic or associated facility for diagnosis or treatment.
  • Primary Care Trust (Pct)
  • Administrative bodies responsible for overseeing and delivering regional NHS services. Abolished in 2013.
  • Teaching Hospital
  • A hospital that combines assistance to patients with teaching medical students.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hospitals market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hospitals:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hospitals market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hospitals, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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