Spending on Medical Services to Rise as Population Ages, Rising Incidence of Conditions

5/12/2020

Cleveland, OH, May 12, 2020 — US expenditures on medical services are forecast to increase 5.6% annually in nominal terms through 2024, according to Medical Services: United States, a report recently released by Freedonia Focus Reports. Providers are expected to benefit from continued growth in consumer incomes, government healthcare spending, and the number of acute and chronic conditions. Hospitals are expected to remain the leading provider of medical services in dollar terms due to their specialization in high-cost, complex treatments. The aging of the population and the resulting growth in the number of acute and chronic conditions will continue to drive demand. Spending for home healthcare services is projected to exhibit the most rapid growth among discrete expenditure segments, with expected annual increases of 7.3% to 2024. The lower costs associated with home healthcare services relative to nursing homes and the desire of many people to remain in their homes are expected to drive spending. In addition, the growing elderly population is projected to boost demand.

Hospitals are expected to see the most impact from the spread of COVID-19, as they will be treating the most severe cases. Physicians’ offices and clinics are also expected to see COVID-19 patients for less severe treatment and monitoring. Non-emergency visits and elective procedures are being postponed, hurting revenues for hospitals, physicians’ offices, and clinics. Nursing homes and continuing care facilities are expected to see increased staffing and medical supply costs as they try to protect their residents from the impact of COVID-19. Revenues could decline for many facilities as some elderly residents pass away, others choose home healthcare due to safety concerns, and potential new residents delay admission. Home healthcare providers could see an increase in business as more individuals will prefer to receive as much care as possible at home; however, staffing expenses could increase.

These and other key insights are featured in Medical Services: United States. This report forecasts to 2024 US medical service expenditures in nominal US dollars. Also provided are forecasts for various indicators of patient activity in volume terms. Total expenditures are segmented by provider in terms of:

  • hospital
  • physician and clinical
  • dental
  • other professional providers
  • nursing and continuing care facilities
  • home healthcare
  • other providers such as assisted living facilities, community centers, and residential intellectual and developmental disability facilities

Patient activity is provided as follows:

  • physician office visits
  • dental office visits
  • hospital outpatient facility visits
  • hospital emergency visits
  • hospital admissions
  • outpatient surgical procedures
  • inpatient surgical procedures

To illustrate historical trends, total expenditures; the various expenditure segments; the various patient activity indicators; and the number of firms, establishments, and employment by major segment are provided in annual series from 2009 to 2019. In addition, the net profit margin by segment is provided in annual series from 2008 to 2018.

More information about the report is available at:

https://www.freedoniafocusreports.com/Medical-Services-United-States-FF95014/?progid=91541