What is the potential growth?
Areas such as projected revenue and future technology can be indicators for the potential growth of the industry. This normally monopolistic industry has been quite profitable but is now seeing competition from private sectors. With laws passing like the Affordable Health Care act there will be more insured Americans, making hospitals more accessible, therefore there is a greater potential for growth and demand.
The current revenue of the industry is 883.2 billion dollars. Projected annual growth is set to increase by 3.9 percent from 2013-18 (Phillips, 2013, pg. 3). With a low concentration level of major companies, there is a greater chance of separation of revenue between multiple companies. This separation of revenue can lead to higher market shares for a larger population of companies.
Currently the industry is in the growing life cycle stage, meaning that the industry as a whole does not currently contribute much to the United States economy (Phillips, 2013, pg. 3). The growing definition denotes that there is a chance that at some time in the future the industry has the potential to contribute more to the market. Phillips (2013) also claimed that hospitals are ...
... middle of paper ...
...ill continue driving revenue” (pg.1). If this industry does begin to sink though, it will directly decline the hospital industry as a whole, potentially hurting a huge chunk of the market.
As seen in this report, the hospital industry is a multi-complex industry that is a top option for the wellness of the citizens it serves. Many subsectors and related industries are main contributors to the hospital industry, in which each has its own potential for growth or downfall. Knowing the main factors and ingredients which go into the industry will help make a more knowledgeable decision on whether or not to diversify into the hospital industry. Many aspects of the hospital industry are changing, but the hospital industry seems to be a solid stakeholder for healthcare. The hospital industry is a solid market for years to come due to the demand for care.
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