Dialysis centers are expected to perform well, due to the inelastic demand for their services.
Los Angeles, CA (PRWEB) November 26, 2013
Dialysis centers are the lifeblood of patients with chronic kidney disease. Dialysis centers provide valuable services to patients with failing kidneys, but unfortunately, dialysis does not cure kidney disease. This treatment helps patients cope with failing kidneys by emulating the functions of healthy kidneys. Dialysis centers are expected to perform well in the five years to 2013, and this is largely due to the inelastic demand for their services. The only substitute available for dialysis treatment is a kidney transplant, which typically entails many years of waiting and uncertainty. According to IBISWorld Industry Analyst James Crompton, “In the five years to 2013, industry revenue is expected to increase at an annualized rate of 4.9% to $19.4 billion.” Dialysis centers grew during the recession, and this was due to both the inelastic demand for dialysis services and a lag in the effect that unemployment has on insurance coverage.
In 2013, Dialysis Centers industry revenue is expected to increase by 6.7%. Growth in the industry has begun to accelerate because of the Affordable Care Act (ACA), which intends to expand healthcare coverage in the United States. The Congressional Budget Office expects that the new government sponsored health insurance exchange, a major component of the 2010 ACA, will expand the number of people with insurance coverage by 32.0 million by 2019. IBISWorld estimates that 66.0% of industry revenue is derived from government insurance programs, such as Medicare and Medicaid, and growing coverage is expected to increase the number of patients that visit dialysis centers. However, the increase in government payouts is also expected to dampen industry profit, as payments from the government typically take longer to receive.
In the five years to 2018, IBISWorld estimates that industry revenue will expand. Over the same period, federal funding for Medicare and Medicaid is expected to grow as well. “Combined with an aging population, these factors are expected to drive industry expansion,” says Crompton. Additionally, technological investments are expected to increase as centers expand their capacity to handle increasing patient volumes. Furthermore, employment in the industry is expected to swell in the five years to 2018, as additional centers open. The number of employees working at dialysis centers is anticipated to increase in the five years to 2018.
For more information, visit IBISWorld’s Dialysis Centers in the US industry report page.
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IBISWorld industry Report Key Topics
The Dialysis Centers in the US industry includes medical facilities that provide inpatient and outpatient kidney or renal dialysis services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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