A difficult diagnosis: Pressure on NHS budgets limits growth despite increasing demand

Operators in the Hospitals industry provide medical, diagnostic and treatment services at both general and specialised hospitals. They have benefited from a growing and ageing population over the past five years, increasing demand for health care. However, public health-care budgets have failed to keep pace with ballooning demand and the NHS has consistently fallen below targets, with waiting times increasing over the period. This has caused the private sector to expand as frustration at NHS shortcomings has led to a greater number of patients seeking private treatment. Over the five years through 2018-19, industry revenue is expected to increase at a modest compound annual rate of 0.1%...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • An ageing population has supported demand for the industry over the past five years
  • The expanding older population has resulted in increasing demand for industry services
  • Controls on immigration from Europe could lead to staff shortages and higher wage costs
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits a high level of concentration, with the largest four operators accounting for a combined market share of 92.7%. The NHS is by far the most dominant player in the industry, accounting for 90.2% of revenue. IBISWorld includes all public hospitals under the NHS banner as one player because they are publicly funded and represent the public health-care system in the United Kingdom.The private hospital segment in the United Kingdom is relatively small, accounting for slightly less than 10% of total hospital activity. Competition in the private sector is intense, and the top five private operators account for over 90% of all beds in that market between them. The...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
  • Limited NHS funding
  • Population pressures
  • Unhealthy staff levels
  • More private patients
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry Outlook continued
  • A bitter pill to swallow
  • Fewer EU workers
  • 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
  • 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
  • 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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