Specialty Hospitals Market Growth Drivers and Forecast by 2027

The Specialty Hospitals in healthcare market was valued at US$ 401.65 million in 2018 and it is projected to reach US$ 509.10 million by 2027; it is expected to grow at a CAGR of 2.8% from 2019 to 2027.

Specialty hospitals can be defined as hospitals that are involved in treatment for a specific medical condition or illness. Initially there were only children or women specialty hospitals which were dedicated to women’s and children’s health issues. With the advent of technology now there are specialty hospitals dedicated to a certain disease like cardiology specialty hospital or a cancer specialty clinic. The need for specialized inpatient and outpatient care has been growing. Specialty hospitals have an important role for treating patients who need special care offering high quality care and safety and enhancing access. The growth of the Specialty Hospitals in healthcare market is attributed to the increasing incidences of chronic diseases, growing public private partnership in healthcare industry and growing geriatric population likely to have a positive impact on the growth of the market in the coming years.

Report Coverage

The Specialty Hospitals in healthcare market is expected to witness substantial growth post-pandemic. The COVID-19 has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The COVID-19 crisis has overburdened public health systems in many countries and highlighted the strong need for sustainable investment in health systems. As the COVID-19 pandemic progresses, the healthcare industry is expected to see a drop in growth. The life sciences segment thrives due to increased demand for invitro diagnostic products and rising research and development activities worldwide. However, the medical technologies and imaging segment is witnessing drop in sales due to a smaller number of surgeries being carried out and delayed or prolonged equipment procurement. Additionally, virtual consultations by healthcare professionals are expected to become the mainstream care delivery model post-pandemic. With telehealth transforming care delivery, digital health will continue to thrive in coming years. In addition, disrupted clinical trials and the subsequent delay in drug launches is also expected to pave the way for entirely virtual trials in the future. New technologies such as mRNA is expected to emerge and shift the pharmaceutical industry and market is also expected to witness more vertical integration and joint ventures in coming years.

Market Insights

Published Report - Specialty Hospitals Market: Strategic Insights

Growing Applications of Specialty Hospitals in Healthcare to Drive Specialty Hospitals in Healthcare Market Growth

Specialty hospitals are not new and are involved in providing cancer, cardiology, orthopedic and other specialized patient care. The hospital industry is subject of renewed emphasis on quality of care and consumer satisfaction and hence specialty hospitals have been established to offer specialized care. Joint replacement surgery is on rise due to rising joint diseases like arthritis. Each year more and more people live with this condition, which can result in life-changing complications. According to the American Academy of Orthopaedic Surgeons, by 2030, number of total knee replacement surgeries in the US are projected to grow to 3.5 million procedures per year. The increase in the joint replacement procedures poses opportunities for specialty hospitals market to grow. 

Also, according to the World Health Organization in 2018, cancer was the second leading cause of death across the globe, and is responsible for an estimated 9.6 million deaths in 2018. Furthermore, the American Cancer Society estimated that in 2018, 1,735,350 new cancer cases were diagnosed. Cardiology specialty hospitals treat several heart conditions that helps in relieving and controlling the symptoms. According to Emory Healthcare in 2018, around 5 million people in America suffer from congestive heart failure (CHF).

Thus, the increasing incidences of chronic diseases holds several opportunities for the specialty market to grow during the forecast period.

A public–private partnership (PPP) is a cooperative arrangement between two or more public and private hospitals. There are deficiencies in public hospitals, hence partnership with private sector has emerged as a new avenue to eradicate the insufficiencies. The approach also includes developing private specialty hospital on public land that allows certain number of beds/ treatments available to publicly funded patients. 

For instance, In India, the Government of Punjab and Max Healthcare Institute entered into Public Private Partnership and are setting up a super specialty healthcare facility for cancer and trauma care. The partnership focuses on providing healthcare services for cancer and trauma care in Mohali, Punjab. According to the partnership, Max Healthcare Institute Ltd (private provider) shall construct and manage the Greenfield super specialty hospital for a period of 50 years (concession period); and the Government of Punjab shall provide the land required for hospital to Max Healthcare Institute Ltd, who will provide the healthcare services. Max Healthcare Institute Ltd will pay the Government of Punjab an upfront consideration and 5% of the total revenue as annual concession fee. PPP hospitals offer benefits like improve access & reach, improve equity (reduce out of pocket expenses), better efficiency, opportunity to regulate & accountability, improve quality/ rational practice, and augment resources- funds, technology. 

Therefore, owing to the advantages of the Public Private Partnership in hospitals sector, the specialty hospitals are likely to boost the growth of the specialty hospitals market in the forecast years.

With advancements in medical services in the past few years, there has been a continuous growth in the geriatric population across the globe, majorly in the developing countries. The geriatric population is highly prone to develop psychiatric disorders, lifestyle diseases, orthopedic diseases and other disorders. This is probably due to age related changes in the brain, body, concomitant physical disorders, along with increased stress in later life and other socioeconomic factors. Hence the aging population requires specialized care. 

According to the Population Reference Bureau report 2016, the number of people aged 65 and older is projected to more than double from 46 million in 2016 to over 98 million by 2060. Also, the United Nations in 2017, estimated reported that there are approximately 962 million people aged 60 across the globe. It also projected that the number of aged people in the world is projected to be 1.4 billion in 2030 and 2.1 billion in 2050, and could rise to 3.1 billion in 2100.

The geriatric specialty hospitals provide comprehensive care with a focus on the patient’s independence, quality of life, and family support. These specialty hospitals treat conditions like fecal incontinence, urinary incontinence, diabetes, Alzheimer’s, heart diseases, arthritis and other chronic diseases. These hospitals ensure that the patient receives the personalized care, and the quality treatment they deserve. 

Thus the growing ageing population demands the need for more specialty hospitals and hence drives the market growth.

Type-Based Insights

In terms of type, the Specialty Hospitals in healthcare market is segmented into cardiac hospitals, cancer hospitals, rehabilitation hospitals, ent hospitals, neurological hospitals, orthopedic hospitals, and others. In 2017, the cardiac hospitals segment held a largest market share of 23.2% of the specialty hospitals market, by type.

The Specialty Hospitals in healthcare market players are adopting the product launch and expansion strategies to cater to changing customer demands worldwide, which also allows them to maintain their brand name globally.

Specialty Hospitals

Published Report - Specialty Hospitals Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Specialty Hospitals Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Specialty Hospitals in Healthcare Market – by Type

• Cancer Hospitals 
• Cardiac Hospitals
• Rehabilitation Hospitals
• ENT Hospitals 
• Neurological Hospitals
• Orthopedic Hospitals
• Others

Specialty Hospitals in Healthcare Market – by Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Spain
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • India
  • South Korea
  • Japan
  • Australia
  • Rest of APAC
• Middle East & Africa (MEA)
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA
• South America and Central America (SCAM)
  • Brazil
  • Argentina
  • Rest of SCAM

Company Profiles

• Encompass Health Corporation
• Kindred Healthcare Inc.
• Memorial Sloan-Kettering
• Steward Health Care System LLC
• Belhoul Speciality Hospital
• Advanced Specialty Hospitals
• HCA Management Services
• L.P.
• TH Medica Community Health Systems, Inc.
• Universal Health Services, Inc