Demand for women's health services will grow strongly with greater health insurance coverage
Los Angeles, CA (PRWEB) October 25, 2012
The Women's Health Hospitals industry provides specialty medical services to women, including gynecological exams, vaccinations, birthing services and family planning. Demand for this industry depends on insurance coverage (both private and socially sourced), the number of births in the United States, federal and state regulations surrounding required treatment and coverage and competition from general hospitals. “Over the five years to 2012, demand weakened slightly as declining disposable incomes limited insurance coverage, the US birth rate and the number of doctor's visits,” says IBISWorld industry analyst Nikoleta Panteva. “Still, federal and state mandates to test and vaccinate young women against the human papillomavirus, along with other preventive service requirements, have supported industry growth since 2007.” As a result, industry revenue has increased at an average annual rate of 3.8% to $1.1 billion in 2012. With incomes and insurance coverage slowly rebounding, demand for women's health services will also climb, giving way to a 6.5% revenue increase in 2012 alone.
Industry profit, however, has declined over the past five years. “Rising labor costs have resulted from a shortage of nurses and other healthcare professionals,” adds Panteva. “Wages have increased their share of revenue from 16.6% in 2007 to 17.5% in 2012.” The Women's Health Hospitals industry has a low level of market share concentration, but concentration has been increasing over the past five years as major women's hospitals, such as Magee-Women's Hospital of UPMC and Brigham and Women's Hospital, continue to expand their facilities. These hospitals are also expanding research and development facilities to find new solutions and attract more patients.
The outlook for the industry is positive, barring any drastic government regulation changes. The Patient Protection and Affordable Care Act of 2010 mandates widespread private insurance coverage. If individuals cannot afford private health insurance, the government will provide subsidies to ensure that all Americans receive coverage. The Act has set a 2014 public exchange, in which patients can compare and purchase individual policies. The increased access to health insurance is expected to boost industry revenue strongly during that year. Along with the recovering economy and a rise in the US birth rate, this factor is projected to push up industry revenue over the five years to 2017. With demand rising, the number of industry employees is also set to rise. A resulting increase in wages will also continue to constrain profit growth over the next five years. For more information, visit IBISWorld’s Women's Health Hospitals in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes specialty hospitals that primarily provide diagnostic and medical treatment to inpatients with health issues specific to female anatomy. Women's health issues often relate to structures such as female genitalia and breasts or to conditions caused by hormones specific to females. Women's health hospitals treat a specific type of disease or medical condition (except psychiatric conditions or substance abuse), maintain inpatient beds and provide food services.
Key External Drivers
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Globalization & Trade
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