Health Care Industry Market Research

Competitive Intelligence, Business Analysis, Forecasts, Market Size, Trends, Companies, Statistics

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Industry Overview
Contents/Key Findings
Industry Statistics
Top companies
Industry trends

Health Care OVERVIEW

Health Expenditures and Services in the U.S.:

Health care expenditures continue to rise dramatically in the U.S. and throughout much of the world. Total U.S. health care expenditures were projected to increase to $5.05 trillion in 2024, up from $4.66 trillion in 2023, according to the U.S. Centers for Medicare and Medicaid Services (CMS).

The health care market in the U.S. during 2024 was projected to include massive spending in the major categories of hospital care ($1,559 billion); dental services ($185.2 billion), physician and clinical services ($1,006 billion); and prescription drugs ($463 billion), along with nursing home ($216 billion) and home health care ($154 billion). Registered U.S. hospitals totaled 6,120 properties in 2024, according to an American Hospital Association survey, containing 916,752 beds.

Medicare, the U.S. federal government’s health care program for Americans 65 years or older, provided coverage to an estimated 66.6 million seniors during 2023. National expenditures on Medicare for fiscal 2024 were projected to be $1,086 billion, including premiums paid by beneficiaries and health care costs covered by Medicare. By 2034, the number of people covered by Medicare will balloon to more than 80 million due to the massive number of Americans who will become of eligible age.

Medicaid is the federal government’s health care program for low-income and disabled persons (including qualified children), as well as certain groups of seniors in nursing homes. Enrollment in Medicaid and CHIP (Children’s Health Insurance Program) combined was estimated at 80.9 million for 2024. The majority of Medicaid/CHIP expenses were paid for by the federal government. However, the states pick up a significant share of the cost, which is a massive burden on state budgets.

The CMS estimates Health spending in the U.S., at about 17.7% of Gross Domestic Product (GDP) in 2024. Health care spending in America accounts for a larger share of GDP than in any other country, by a wide margin. Despite the incredible investment America continues to make in health care, 8% of people in the U.S. (26.4 million) lacked health care coverage for at some point in 2023. For some, insurance was unavailable or unaffordable. In other cases, the lack of insurance was due to a personal decision not to pay for it. According to the Kaiser Family Foundation, most uninsured people are in low-income working families, but a large segment of those counted among America’s uninsured are non-U.S. citizens, both lawful and illegal residents.

In March 2010, President Obama signed the Patient Protection and Affordable Care Act (ACA), designed to strengthen insurance company regulation and provide medical coverage to millions of uninsured Americans. Online health care insurance “exchanges” began enabling consumers to shop for health coverage. Consumers whose annual incomes do not exceed set amounts may receive federal financial assistance if they purchase their own health insurance.

Health Expenditures Globally and in OECD Developed Nations:

A comprehensive study published by the Organization for Economic Cooperation & Development (OECD) covering more than 30 nations, including the majority of the world’s most developed economies (but excluding Brazil, Russia, India or China), found stark contrasts between health costs in the United States and those of other nations. While health care spending in the U.S. tops 17% of GDP, in many other well-developed nations the ratio to GDP is more like 9%. In less-developed nations, the ratio is much smaller.

Total health care expenditures around the world are difficult to determine. However, $12.2 trillion would be a reasonable estimate for the formal, global health care market for 2024. That would place health care at roughly 12.6% of global GDP and about $1,612 in health spending per person on average. In the U.S. and other developed nations, the per capita number is much higher. Plunkett Research estimates $14,849 per capita for the U.S. for 2024. The trend over the near future is for the modest amount now spent on health care in emerging nations to rise dramatically, while OECD nations like America will struggle to contain their own mountainous costs. Globally, Plunkett Research estimates the total prescription drug market was $1.5 trillion in 2024.

Health Care Costs in the U.S.

Particularly in the U.S., continuous increases in the cost of health care, growing at rates far exceeding the rate of inflation in general, have been inflicting financial pain on health consumers and payers of all types. Government agencies are strained by the ever-growing cost of public health care programs such as Medicare, while employers are hit hard by vast increases in the cost of providing coverage to employees and retirees.

Many major employers are utilizing unique new programs in efforts to reduce employee illness, and thereby cut costs. For example, the use of preventive care programs is growing, as is the use of employee education aimed at better managing the effects of diseases such as diabetes. Some very large employers are even hiring in-house physicians and nurses or contracting with outside providers for on-premises care facilities, to offer primary and preventive care in the workplace.

Patients and insurance companies are also dealing with sticker shock over the nation’s prescription drug costs. Other factors edging costs upward include expensive new medical technologies and patients’ demands for greater flexibility in choosing doctors and specialists at their own discretion. At the same time, hospitals and health systems write off massive amounts of potential revenues to bad debt, which increases costs for bill-paying patients.

In the wake of the tremendous growth of all aspects of the health care industry from the end of World War II onward, efficiency, competition, price transparency and productivity were, regretfully, largely overlooked. Much of this occurred because employers, plus federal and state governments, pay such a large portion of the health care bill, to the extent that patients were generally not sensitive to health care costs.

The Centers for Disease Control and Prevention (CDC) reported recently that six in ten Americans suffer with at least one chronic disease such as cancer, diabetes, heart disease, pulmonary conditions, stroke or hypertension. In addition to the massive cost of health care for these patients, the lost time at work and lost economic output due to these illnesses substantially reduced the nation’s GDP. These burdens could be vastly reduced through better consumer health practices and better preventive medicine. For example, obesity, lack of exercise and cigarette smoking are immense contributors to these diseases.

The American health care industry faces more challenges than ever, due to many significant factors:

= One of the most dramatic results of the Affordable Care act of 2010 has been consolidation within the hospital industry, with mergers creating massive organizations that in many cases have a dominant, regional or city-wide market share. A similar effect has been a migration of physicians leaving private practice or small clinics in order to join giant physician practice groups or the staffs of hospitals. Independent physicians are concerned about their ability to meet increased regulatory scrutiny, successfully deploy electronic health records and earn the incomes that they desire. Many older physicians state that they will simply retire earlier than they had planned.

= The U.S. population is aging rapidly. At the same time, the life expectancy of seniors is extending. Senior citizens will place a significant strain on the health care system in coming years. America’s millions of surviving Baby Boomers began turning 65 in 2011.

= The future obligations of Medicare and Medicaid are enough to cause vast problems for federal and state budgets for decades to come. The number of seniors covered by Medicare will continue to grow at an exceedingly high rate, from 47.4 million people in 2010 to 77 million in 2030.

= Likewise, costs for Medicaid, which is administered at the state level, have grown so rapidly that they are competing fiercely for budget dollars that might otherwise go to education and other vital state-provided services.

= High, and growing, pharmaceutical costs have created a large backlash among health consumers and payers. Some of the newest cancer drugs cost more than $500,000 to cover one treatment period.

= We are now in what will long be remembered as the beginning of the Biotech Era. Breakthroughs in research for targeted drug therapies, immunotherapies, genetic testing and synthetic biology are occurring at a rapid pace, and highly advanced, genetically engineered drugs are available for many diseases.

= Due to rising costs, employers large and small are straining under the financial burden of health care coverage expenses for current employees and retirees.

= Physicians, hospitals, medical device makers and pharmaceutical manufacturers face daunting pressure from litigation and claims regarding malpractice. Lawsuit reform legislation has recently been enacted in many states with very promising results.

= Vast numbers of Americans fail to lead healthy lifestyles that would prevent disease and cut both the amount and the cost of medical care. Obesity-related illnesses are adding an immense amount to the nation’s health care costs. (The recently launched obesity drugs, such as Ozempic and Mounjaro, while relatively expensive themselves (about $1,000 monthly) could eventually lead to a dramatic reduction in obesity-related chronic diseases, and thus an overall reduction in the costs of treatment and care.)

= The three biggest causes of death in the U.S. are heart disease, cancer and stroke. Nearly one-fourth of America’s annual health expenditures go for treatment of these three killers.

= Only a relatively modest amount of money is spent on preventive medicine and health education. The vast majority of health care funds are spent on the treatment of chronic diseases as well as end-of-life care for dying patients.

Source: Plunkett Research, Ltd.

WE PROFILE HUNDREDS OF TOP COMPANIES:

See All

PLUNKETT PROVIDES IN-DEPTH STATISTICS TABLES COVERING THE FOLLOWING INDUSTRY TOPICS:

Top Companies Profiled

The following is a partial listing for this industry. As a subscriber, you will have access to the leading companies and top growth companies. This includes publicly-held, private, subsidiary and joint venture companies, on a global basis as well as in the U.S.

Hundreds of Top Companies Profiled, Including:

PLUNKETT PROVIDES UNIQUE ANALYSIS OF THE FOLLOWING TRENDS THAT ARE DRIVING THIS INDUSTRY:

Key Findings:

A complete market research report, including forecasts and market estimates, technologies analysis and developments at innovative firms within the Health Care Industry. Gain vital insights that can help shape strategy for business development, product development and investments.

Key Features:

Business trends analysis
In-depth industry overview
Technology trends analysis
Forecasts
Spending, investment, and consumption discussions
In-depth industry statistics and metrics
Industry employment numbers

Additional Key Features Include:

Industry Glossary

Industry Contacts list, including Professional Societies and Industry Associations

Profiles of industry-leading companies

U.S. and Global Firms
Publicly held, Private and Subsidiaries
Executive Contacts
Revenues
For Public Companies: Detailed Financial Summaries
Statistical Tables

Key Questions Answered Include:

How is the industry evolving?
How is the industry being shaped by new technologies?
How is demand growing in emerging markets and mature economies?
What is the size of the market now and in the future?
What are the financial results of the leading companies?
What are the names and titles of top executives?
What are the top companies and what are their revenues?

This feature-rich report covers competitive intelligence, market research and business analysis—everything you need to know about the Health Care Industry.

Plunkett Research Provides Unique Analysis of the Following Major Trends and Technologies Affecting the Health Care Industry

Introduction to the Health Care Industry
The Coronavirus’ Effect on the Health Care Industry
Continued Rise in Health Care Costs
Employers Fight Rapidly Growing Health Care Premiums/Require Employees to Pay a Significant Share of Costs
Medicare and Medicaid Spending Continue to Surge/More Baby Boomers Hit 65+ Years of Age
U.S. Affordable Care Act (ACA) of 2010 Rewrote the Rules and Increased Coverage, But Costs Continue to Rise
Accountable Care Organizations (ACOs) and Hospital Mergers Result from the Affordable Care Act/Many Hospital Chains Grow Dramatically in Market Share
Concierge Care/Direct Primary Care Are on the Rise/New Twists on House Calls
Insurance Companies Change Strategies Due to Affordable Care Act (ACA) and Rapidly Rising Costs of Care
Number of Uninsured Americans Declines But Remains High
Health Sharing Ministries Attract Millions of Members
Massive R&D Investment Required for Development and Approval of New Blockbuster Drugs/Drug Prices Soar
Fast Track Drugs Come to Market in the U.S. with FDA Cooperation
Generic Drugs Have Biggest Market Share By Unit Volume, but not by Total Revenues
America Pays Higher Prices for Drugs Than Other Nations/U.S. Government Launches Drug Price Negotiation and Control Powers for Medicare
Biotech and Orphan Drugs Create New Revenues for Drug Firms
Revolutionary New Drugs (Zepbound, Wegovy and Ozempic) Treat Obesity, Diabetes and Addiction/Show Promise for Treating Many Other Diseases
Quality of Care and Health Care Outcomes Data Are Available Online, Creating a New Level of Transparency
Malpractice Suits Are Blamed for Rising Health Care Costs/Tort Reform Is Capping Awards for Damages
Obesity Sparks Government, School and Corporate Initiatives/Snack Foods Get Healthier
Health Care Goes Offshore, Medical Tourism and Clinical Trials Continue in China, India and Elsewhere
Retail Clinics, Urgent Care Centers and Employer Sites Increase Health Care Options but Suffer Challenges
Health Care Industry Grows Rapidly in China, India and Mexico

The Outlook for Health Care Technology:
Health Care Technology Introduction
Electronic Health Records (EHR) Digitize Patient Records at an Accelerating Pace
Telemedicine and Remote Patient Monitoring Rely on Wireless
Stem Cells and 3D Printing—A New Era of Regenerative Medicine Takes Shape
Health Care Robotics
Patients’ Genetic Profiles Plummet in Price as DNA Sequencing Technologies Advance
Advances for Cancer Patients in Chemotherapy and Radiation, Including Proton Beams and IMRT
Better Imaging, including MRI, PET and 320-Slice CT, Creates Advances in Detection
Artificial Intelligence (AI), Deep Learning and Machine Learning Advance into Commercial Applications, Including Health Care and Robotics

Plunkett Research Provides In-Depth Tables for the Following Health Care Industry Statistics

U.S. Health Care Industry Overview

U.S. Health Care Industry Statistics and Market Size Overview

Global Health Statistics, 2017-2024

Employment in the Health Care Industry, U.S.: 2019 - June 2024

U.S. FDA New Drug (NDA) and Biologic (BLA) Approvals, 2024

The U.S. Drug Discovery & Approval Process

Federal R&D & R&D Plant Funding for Health and Human Services, U.S.: Fiscal Years 2022-2024

U.S. Health Care Expenditures & Costs

The Nation's Health Dollar: 2024 Where It Came From (Projected)

The Nation's Health Dollar: 2024 Where It Went (Estimated)

National Health Expenditures & Annual Percent Change, U.S.: 2016-2032

National Health Expenditures by Type of Expenditure with Affordable Care Act Impacts, U.S.: Selected Calendar Years, 2020-2032

Hospital Care Expenditures & Annual Percent Change, U.S.: 2016-2032

Nursing Home Care Expenditures & Annual Percent Change, U.S.: 2016-2032

Home Health Care Expenditures & Annual Percent Change, U.S.: 2016-2032

Prescription Drug Expenditures & Annual Percent Change, U.S.: 2016-2032

Medicare & Medicaid

Medicare Enrollment, 1975-2097

Medicaid Enrollment & Expenditures for Medical Assistance Payments & Administration:

Selected Years, 1966-2027

U.S. Health Insurance Coverage & The Uninsured

Number & Percent of Persons of All Ages with and without Health Insurance Coverage,

U.S.: 2007-2022

Employers' Costs for Total Compensation and Health Insurance, by Selected Characteristics,

U.S.: Selected Years, 2020-2024

U.S. Vital Statistics & Population Indicators

Prevalence of Obesity Among Adults, by Age, Sex and Race/Ethnicity: U.S., 2018

Organizations that have used our research and products

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Health Care Industry Market Research

Health Care OVERVIEW

WE PROFILE HUNDREDS OF TOP COMPANIES:

PLUNKETT PROVIDES IN-DEPTH STATISTICS TABLES COVERING THE FOLLOWING INDUSTRY TOPICS:

Top Companies Profiled

The following is a partial listing for this industry. As a subscriber, you will have access to the leading companies and top growth companies. This includes publicly-held, private, subsidiary and joint venture companies, on a global basis as well as in the U.S.

Hundreds of Top Companies Profiled, Including:

PLUNKETT PROVIDES UNIQUE ANALYSIS OF THE FOLLOWING TRENDS THAT ARE DRIVING THIS INDUSTRY:

Organizations that have used our research and products

CUSTOM MARKET RESEARCH

INDUSTRIES WE COVER

INDUSTRY ANALYTICS REPORTS

CORPORATE BENCHMARKS REPORTS

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