Brief Excerpt from Industry Overview Chapter:
Companies in this industry provide medical, diagnostic, and treatment services to people on an inpatient and outpatient basis at specialized medical, surgery, emergency, and other health care facilities. Major companies include Community Health Systems (CHS), HCA (Hospital Corporation of America), and Tenet Healthcare (all based in the US), as well as Apollo Hospitals (India), Fraser Health (Canada), and Ramsay Health Care (Australia).
The world has about 17,000 hospitals. Regions with the most hospital beds per 10,000 people include Europe, the Western Pacific, and the Americas, according to the World Health Organization.
The US hospitals industry has about 7,100 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $1 trillion. The industry doesn't include residential care facilities or outpatient care centers, which are covered in separate industry profiles.
Demand for hospital services is driven by demographics, illness and injury rates, and advances in medical care and technology. The profitability of individual companies depends on efficient operations, since many hospitals offer similar services, and customer perception, since in many cities hospitals compete for patients.
Hospitals also compete for physicians, and seek to attract doctors with state-of-the-art equipment and an attractive work environment. Large companies have advantages in buying supplies, sharing best practices, and negotiating contracts with health insurers. Large hospitals may offer a wider variety of services. Small hospitals can compete successfully by serving a limited geographical area or offering specialized services. About 75% of...
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