Specialty Hospitals Market Size, Share, Industry Analysis, Trends, Growth, 2032

Specialty Hospitals Industry Prospective:

The global specialty hospitals market size was worth around USD 74.87 billion in 2023 and is predicted to grow to around USD 176.53 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.00% between 2024 and 2032.

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Specialty Hospitals Market: Overview

Specialty hospitals are specially designed medical care centers. They are developed for treating specific medical conditions, unlike general hospitals that cater to the needs of several types of medical issues under one roof. Specialty hospitals are curated to treat conditions that require special care and can only be treated by medical professionals with specialized skill sets. Specialty hospitals have existed for a long time in the form of pediatric care, rehabilitation centers, psychiatric hospitals, and institutions for treating ear-related concerns.

In modern times, more variants of specialty hospitals have been added to the market thus catering to the needs of a vast group of patients. Specialty hospitals have received support from several agencies and healthcare groups as they argue that specialty medical centers offer a means to reduce healthcare costs as these agencies can leverage the benefits of economies of scale. Furthermore, specialty hospitals typically encourage better and patient-centered medical care. However, the industry has also dealt with several challenges as opponents of the specialty care agencies claim that the sector promotes unfair competition as they end up promoting over-consumption and utilization of medical facilities. During the projection period, the industry for specialty hospitals is expected to witness a significant growth rate.

Key Insights:

• As per the analysis shared by our research analyst, the global specialty hospitals market is estimated to grow annually at a CAGR of around 10.00% over the forecast period (2024-2032)
• In terms of revenue, the global specialty hospitals market size was valued at around USD 74.87 billion in 2023 and is projected to reach USD 176.53 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising number of treatment facilities for cancer
• Based on the application, the older population segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the disease, the cancer segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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Specialty Hospitals Market: Growth Drivers

Rising number of treatment facilities for cancer will drive the market growth rate

The global specialty hospitals market is expected to grow owing to the increasing number of hospitals for treating cancer patients. As per statistics posted by the World Cancer Research Fund International, more than 18.1 million cancer cases were registered globally in 2020. The World Health Organization (WHO) claims that it is one of the leading causes of death among the general population. Cancer can affect people of all genders, races, and ages including children. For instance, as per the International Agency for Research on Cancer (IARC), more than 280,000 adults and children between the age group of 0 to 19 years were diagnosed with cancer in 2020. Over 100,000 children succumbed to the disease in the same year. Several forms and types of cancer have been diagnosed across the globe making it difficult to develop a standard cure or treatment process.

Moreover, researchers working on developing cures for cancer are constantly researching for more effective solutions but have not achieved a permanent treatment protocol resulting in more deaths being registered caused by cancer. The condition can be treated over time allowing patients to prolong their life and, in some cases, beat the disease. The number of cancer-treating hospitals has surged rapidly in the last decade as demand for cancer care is on the rise. In September 2023, the University of Chicago Medicine initiated the construction of a new state-of-the-art structure for cancer research and care. The project is expected to cost USD 815 million and will be spread across 575,000 square feet.

Increasing demand for improved medical care will push the market toward further growth

The world is witnessing a shift in patient awareness and expectations from the healthcare community. Patients are demanding improved medical care that focuses on comprehensive treatment. Additionally, access to medical and health insurance policies has allowed patients to undergo specialized care for conditions that may not receive the same approach from general hospitals. The rise in healthcare expenditure globally will be beneficial for specialty hospital developers. As per research, patients prefer hospitals with streamlined processes, especially in cases of serious or fatal diseases. India has witnessed an increase of over 20% in healthcare expenditure from 2014 to 2019 thus indicating the acceptance rate for the global specialty hospitals market.

Specialty Hospitals Market: Restraints

High cost of services at specialty hospitals will restrict the market expansion rate

The global specialty hospitals industry is expected to be restricted due to the high cost of services offered at such centers. Specialty hospitals employ medical professionals with expertise in specific treatments. Furthermore, these centers are equipped with modern facilities, diagnostic tools, and treatment procedures leading to an increased cost of treatment thus making them unaffordable for patient groups with limited resources. As per official reports, the cost of one bed in US hospitals can be over USD 2000. Additionally, the increasing competition from general hospitals with advanced facilities and improved patient care will further impact the market growth rate.

Specialty Hospitals Market: Opportunities

Growing construction of specialty centers for contagious diseases has high growth opportunities

The global specialty hospitals market is expected to generate high growth opportunities due to the rising interest in the construction and development of centers dedicated to treating contagious conditions. Since COVID-19, the world healthcare infrastructure has been steadily moving toward developing an ecosystem capable of handling another contagious pandemic. Additionally, the rising population density worldwide has resulted in an increased risk of contagious diseases spreading at a massive rate, especially in crowded areas. In February 2024, the announcement for the construction of a new contagious disease-treating facility was made. The center will be built near Mumbai and will treat patients with conditions such as swine flu, COVID-19, and tuberculosis. As per official research, more efforts are required to be directed toward managing and controlling outbreaks of conditions such as malaria, Human immunodeficiency virus (HIV) infection, and acquired immune deficiency syndrome (AIDS) in sub-Saharan regions thus provoking the need for the development of specialty hospitals.

Increasing focus on integrating advanced technology and specialty hospitals will push the industry toward new boundaries

Specialty hospitals, in most cases, are well-funded. These facilities are known to deliver supreme care to patients. Additionally, they are currently experimenting with integrating advanced technologies such as Artificial Intelligence (AI) and robotic assistance for delivering personalized patient care. Moreover, increasing collaboration with health tech companies and specialty hospitals will further promote the industry growth rate. In March 2024, Google Health was reported to be taking futuristic steps in the field of healthcare AI for better decision-making in the healthcare field. Such advancements can help the global specialty hospitals market grow.

Specialty Hospitals Market: Challenges

Claims of specialty hospitals prioritizing profit-making will challenge the market expansion

The global industry for specialty hospitals is expected to be challenged due to the increasing perception and claims that such initiatives mainly focus on patients who can deliver higher profits. Moreover, support for the general hospital concept claims that specialized hospitals limit the ability of general hospitals to cross-subsidize services that are deemed unprofitable.

Specialty Hospitals Market: Segmentation

The global specialty hospitals market is segmented based on application, disease, and region.

Based on application, the global market segments are the older population, adults, and pediatric care. In 2023, the highest demand was observed in the older population segment due to the growing demand for geriatric care solutions. The growing population of people over 60 years and the extensive medical problems associated with old age are driving the demand for facilities that focus on providing optimal medical treatments to older people with medical conditions. As per market reports, more than 40% of the geriatric population is likely to be hospitalized.

Based on disease, the global market divisions are obesity, cardiovascular diseases, cancer, contagious conditions, and others. In 2023, the highest market revenue was registered in the cancer segment. The growing number of cancer patients and rising investments in cancer diagnosis processes will promote segmental demand. In 2022, more than 4,800,000 cases of cancer were reported in China as per the market study. The construction of new contagious conditions treatment centers will also promote the market growth rate.

Specialty Hospitals Market Report Scope

Specialty Hospitals Market: Regional Analysis

North America to witness the highest growth during the projection period

The global specialty hospitals market is expected to witness the highest growth in North America. The US and Canada are projected to lead with the highest regional market revenue. Healthcare infrastructure in the US is one of the world’s most dominant sectors with people from across the globe visiting the nation for treating serious conditions such as cancer. The US invests heavily in healthcare research which promotes regional market share. In 2020, the country spent nearly USD 245 billion on medical and health research & development.

The growing demand for more affordable yet effective medical treatments and the rising number of patients will act as the regional growth driving factors. In October 2023, Insight Hospital announced that it would build a new specialty hospital for patients requiring behavioral and medical care. The agency has received a grant of USD 2.5 million from the Michigan Department of Health and Human Services. Asia-Pacific is anticipated to witness high growth during the projection period. The growing regional healthcare expenditure and increasing demand for patient-centered medical care will push the regional growth revenue. India and China will act as key market growth contributors since medical tourism in India is on the rise due to the availability of cost-efficient specialty medical care.

Specialty Hospitals Market: Competitive Analysis

The global specialty hospitals market is led by players like:

• Vibra Healthcare
• Nobilis Health Corporation
• Select Medical Corporation
• Tenet Healthcare Corporation
• Kindred Healthcare
• National Surgical Hospitals
• Encompass Health Corporation
• Hospital Corporation of America (HCA Healthcare)
• Surgery Partners Inc.
• Surgical Care Affiliates
• Acadia Healthcare Company Inc.
• Universal Health Services Inc.
• Nueterra Healthcare
• American Addiction Centers Inc.
• LifePoint Health Inc.

The global specialty hospitals market is segmented as follows:

By Application

• Older Population
• Adults
• Pediatric Care

By Disease

• Obesity
• Cardiovascular Diseases
• Cancer
• Contagious Conditions

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa