A rise in Medicare expenditures and increases in private health insurance boosted revenue receipts
New York, NY (PRWEB) February 19, 2014
The Air Ambulance Services industry comprises air medical transports, including helicopters and fixed winged aircrafts, specifically outfitted to transport ill or injured people. Transports in this industry are staffed with qualified medical personnel who provide comprehensive and emergency treatment. The industry experienced significant growth during the decade leading up to the recession, spurred by a healthy overall economy and a stable health insurance environment. According to IBISWorld Industry Analyst Stephen Morea, “Increases in the number of individuals covered by private health insurance and a rise in Medicare expenditures boosted industry revenue receipts, as insurance institutions cover the majority of expenses related to ambulatory transportation expenses.”
However, the Air Ambulance Services industry has encountered a number of difficulties from 2009 through 2014. Industry revenue was hurt by high unemployment during the recession, leading to a drop in the number of people with private health insurance, a primary source of revenue. More recently, in 2010, the passage of the Patient Care Protection and Affordable Care Act (PPACA) created considerable uncertainty over future government funding and private health insurance reimbursements. “Nevertheless, industry revenue remains healthy and is expected to increase at an average annual rate of 2.8% to $3.8 billion in the five years to 2014, including a forecast 2.9% growth in 2014 alone,” says Morea.
Going forward, the Federal Aviation Administration (FAA) is poised to implement new safety regulations. A stricter regulatory environment will prove costly to the industry during the next five years, increasing costs and constraining profit margin during the next few years. However, favorable demographic trends will ultimately benefit industry revenue, which is expected to increase in the five years to 2019. The graying of the US population will continue to bolster industry demand, as older individuals are more likely to need emergency medical treatment and transport, provided by this industry.
For more information, visit IBISWorld’s Air Ambulance Services in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
The Air Ambulance Services industry provides air transportation and critical-care services to patients. These services are often provided during a medical emergency, but they are not restricted to emergencies. The vehicles are equipped with lifesaving equipment operated by medically trained personnel.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.