Dublin, Aug. 22, 2024 (GLOBE NEWSWIRE) -- The "U.S. Hospitals and Health Systems Market Report 2024" report has been added to ResearchAndMarkets.com's offering.
The 2024 Hospitals and Health Systems Market Report examines the increase in patient acuity levels, increased investments in cybersecurity infrastructure, and merger and acquisition projections.
Spending on U.S. hospital services has continuously grown post-pandemic and is projected to reach $1.54 trillion by the end of 2024 before increasing 43% by 2030 to over $2 trillion. In 2024, hospital care continues to lead the total U.S. healthcare expenditures at 31% and is expected to account for 33% of total U.S. healthcare spending by 2030.
Over 50% of the hospitals in the U.S. are acute care hospitals that provide short-term medical treatment for patients with severe or urgent health issues. Not-for-profit ownership and private equity acquisition of hospitals is on the rise in 2024. Fifteen percent of surveyed health system leaders expect their 2024 merger and acquisition strategy to include a private equity partner.
Operating Margins Remain Positive Amid Declining Patient Volumes
Hospital inpatient and emergency room (ER) patient volumes dropped 20% in 2023 compared to 2019. Contributing factors include financial pressures and significant shifts in care settings. Despite these declines, 59% of healthcare leaders anticipate improved financial performance for hospitals and health systems in 2024. Year-to-date hospital operating margins remain positive at 3.8% through April 2024.
Cybersecurity Infrastructure And Virtual Health Lead Technology Focused Efforts
Eighty-six percent of hospitals and health systems expect increased technology budgets in 2024. Over 50% of health systems are prioritizing investments in cybersecurity infrastructure in 2024, while 76% are adopting virtual health technology to enhance patient experience.
In 2023, over 700 healthcare data security breaches were reported, including 43 ransomware attacks. The average cost of a healthcare data breach in 2023 was $10.9 million, a 53% increase since 2020. Since 2010, healthcare has continually experienced the highest average cost per data breach across all industries.
Workforce Challenges Remain Top Issue For Third Consecutive Year
Sixty-six percent of hospitals and health systems operated below maximum capacity in 2023 due to ongoing staff shortages and workforce issues. After experiencing elevated turnover and vacancy rates among registered nurses (RNs) in previous years, the RN turnover rate in hospitals has reverted to 2020 levels, and the vacancy rate fell below 10%. Medical and laboratory technician shortages have emerged as the primary workforce challenge, surpassing RN shortages.
Mergers And Acquisitions Driven By Operational Challenges And Patient Needs
A total of 65 hospital mergers and acquisitions occurred in 2023, totaling over $38 billion and marking the highest volume since 2020. Among surveyed hospital and health system leaders, 27% expect merger and acquisition activity to increase in 2024, while 58% anticipate it will remain the same.
Key Topics Covered:
- Hospital Patient Volumes Remain Below Pre-Pandemic Levels
- Hospital Operating Margins Drop In 2024
- Health System Expenses And Patient Care Costs Continue To Rise
- Increase In Outpatient Procedures As Inpatient Volumes Decline
- Projected Hospital Volumes Growth Tied To Rising Patient Acuity
- Voluntary Sustainable Healthcare Certification Program Begins In 2024
- Average Healthcare Cyberattack Costs Have Surged 53% Since 2020
- Cybersecurity Infrastructure Leads As Top Technology Investment Priority In 2024
- Not-For-Profit Ownership Of Community Hospitals Continues To Rise
- Rural Hospital Closures And Conversions Rose In 2023
- New CMS Two-Midnight Rule Impacting Inpatient Volume And Revenue
- $50 Million Federal Cybersecurity Initiative Announced To Address Healthcare System Vulnerabilities
- IDNs Drive Business Growth With Specialty Care Services
- HCA Healthcare Tops IDN Rankings For Average Daily Census And Net Patient Revenue
- Nursing Turnover Declines, But Staffing Challenges Persist
- Supply Chain Costs Continue To Rise With Ongoing Challenges
- Supply Chain Leaders Prioritize Data Analytics And Digital Initiatives
- Merger And Acquisition Activity In 2024 Expected To Mirror That Of 2023
- Clarivate Lists Top Hospital Products Sold Through Distribution
For more information about this report visit https://www.researchandmarkets.com/r/f1fevf
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