U.S. HOSPITAL EMERGENCY DEPARTMENT MARKET ANALYSIS

Market Challenges And Opportunities

U.S. Hospital Emergency Department Market Drivers:

High number of emergency department visits to augment market growth

One of the key factors expected to augment the growth of the U.S. hospital emergency department market during the forecast period is the high number of emergency department visits. For instance, according to the Centers for Disease Control and Prevention (CDC), each year, around 136 million people in the United States visit emergency departments, with around 30% of those visits relating to injuries. Moreover, the yearly national average of emergency room patients is 42 for every 100 people or about 42 percent. Such a high number of emergency department visits is expected to fuel the growth of the U.S. hospital emergency department market.

Rise in burden of chronic diseases to underpin market growth

Another factor which is driving the growth of the U.S. hospital emergency department market is the rising prevalence of chronic diseases in the region. For instance, nearly 60% of all emergency room visits are associated with people with chronic conditions. According to CDC, chronic diseases such as heart disease, cancer, and diabetes are the leading causes of death and disability in the United States. Six in ten Americans live with at least one chronic disease, such as heart disease and stroke, cancer, or diabetes. Moreover, chronic diseases account for 75% of the healthcare spending in the United States each year, according to the same source.

U.S. Hospital Emergency Department Market Opportunities:

Rise in penetration of health insurance among the US population is expected to provide significant growth opportunities for players in the U.S. hospital emergency department market. For instance, insurance companies play a vital role in the market growth. Medicare and Medicaid offer insurance for emergency health services. Emergency department (ED) visits by adults over the age of 65 are by ambulance, which is covered under Medicare Part B. Part A covers a portion of the cost if the patient enters the emergency room and is admitted as an inpatient, while Part B covers the portion of the cost if the patient receives care from a doctor but is not admitted as an inpatient.  

Growing geriatric (aging) population in the U.S. is expected to offer lucrative growth opportunities for players in the U.S. hospital emergency department market. For instance, the old age people are prone to various diseases and have higher chances of acquiring emergency care services. People age 65 and older are more likely than younger people to suffer from chronic disease. According to the U.S. Census Bureau, more than 56 million adults ages 65 and older live in the U.S., accounting for about 16.9% of the nation’s population. Moreover, the total number of adults ages 65 and older is expected to reach around 85 million by 2050 (22% of the overall population).

U.S. Hospital Emergency Department Market Restraints:

Preference for convenient care to hinder growth of the market

One of the key factors expected to hinder growth of the U.S. hospital emergency department market is the rising preference for convenient care. Convenience care encompasses a range of care delivery options, from clinics to urgent care centres to freestanding EDs. These facilities are often staffed by nurse practitioners and physician assistants and have the resources necessary to perform basic screening and diagnostic services and to treat low-complexity diseases. Convenient care is gaining popularity and quickly becoming the default alternative for quick, dependable emergency medical care. This in turn is expected to hamper growth of the market.

Figure 1. U.S. Hospital Emergency Department Market Value (US$ Mn) & Y-o-Y Growth (%), 2017-2030

High cost of emergency care to hamper growth of the market

Another factor which is hampering the growth of the hospital emergency department market is the high cost of emergency care. For instance, high cost of emergency care may impact patients’ ability to afford treatment, with almost half of US adults reporting they have delayed care owing to costs. However, the cost of emergency visit depends on the level of care. Around 13 to 27% of ED visits in the United States could be managed in physician offices, clinics, and urgent care centres, saving US$ 4.4 billion every year, according to the Agency for Healthcare Research and Quality (AHRQ). This in turn is expected to hamper growth of the market.