Alive and kicking: New funding models that constrain costs will foster industry revenue growth

The Hospitals industry in Canada has exhibited stable growth over the past five years. The industry is heavily dependent on both federal and provincial funding, which is most allocated via global budgets systems, where a fixed payment amount is allocated to a provider to cover operating expenses for a period of time. Over the five years to 2019, industry operators benefited from increased federal funding, however, a rapidly aging Canadian population has constrained revenue growth. Over the five years to 2024, industry revenue is forecast to grow. Provinces and territories will likely adopt new funding models to constrain healthcare costs brought about by an aging population...read more.

Industry Statistics & Market Size
Revenue
$76bn
Annual Growth 14-19
2.4%
Forecast Growth 19-24
Profit
Employment
605,433
Businesses
519
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Provinces and territories will likely adopt new funding models to constrain healthcare costs brought about by an aging population
  • Operators strived for increased efficiency and cost control during the period
  • Hospitals will invest an increasing share of revenue on outpatient programs
  • Industry Report - Industry Products Chapter

    Hospitals in Canada are often categorized based on the services they provide; the majority of industry operators are generalist hospitals providing a wide array of services. While nearly all hospitals are publicly funded, the nature of the services they provide may vary. Industry operators are also often part of a healthcare network, which often focus their efforts by geographic region. The following is a breakdown of hospital bed space designations in Canada.Long-term careLong-term care bed space accounts for an estimated 17.4% of all hospital bed space in 2019. Long-term care services consist of hospital-level care for extended periods of time for various ailments, with length of stays averaging over three weeks. Lon...purchase to read more.

    Additional Insights for the Hospitals Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hospitals Industry are

  • Access to highly skilled workforce
  • Understanding government policies and their implications
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Number of adults aged 65 and older in the Hospitals industry impact industry performance..

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    What's in this report

    What is the Hospitals Industry?

    This industry includes general medical and surgical hospitals that provide surgical and nonsurgical diagnostic and medical treatment to inpatients with medical conditions. Hospitals in this industry maintain beds and usually provide other medical treatment such as outpatient services and pharmacy services. This industry excludes psychiatric and other specialty hospitals.

    Industry Products
  • Long-term care
  • Mental health and addiction
  • Rehabilitation
  • Intensive care
  • Obstetrics
  • Pediatrics
  • Other acute care
  • Industry Activities
  • Intensive care
  • Rehabilitation care
  • Laboratory services
  • Surgical procedures
  • Imaging services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total health expenditure
  • Number of adults aged 65 and older
  • Adult obesity rate
  • Private investment in computers and software

  • Current Performance
  • Demographic drivers
  • Shifting models of care
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population
  • Competition keeps up
  • Technological advancements
  • Table: Hospitals Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hospitals Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health & Medical Insurance in Canada
  • Public Administration in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Brand-Name Pharmaceutical Manufacturing in Canada
  • Generic Pharmaceutical Manufacturing in Canada
  • Industrial Laundry & Linen Supply in Canada
  • Medical Device Manufacturing in Canada
  • Medical Instrument & Supply Manufacturing in Canada

  • Products & Services
  • Other acute care
  • Long-term care
  • Mental health and addiction
  • Rehabilitation
  • Intensive care
  • Obstetrics
  • Pediatrics
  • Chart: Hospitals Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Females aged 70 and older
  • Males aged 45 to 69
  • Females aged 45 to 69
  • Males aged 70 and older
  • Females aged 20 to 44
  • Males aged 20 to 44
  • Males aged 19 and younger
  • Females aged 19 and younger
  • Chart: Major Market Segmentation for the Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Hospitals

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hospitals Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hospitals Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hospitals Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total health expenditure (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ambulatory Care
  • Medical diagnostic or therapeutic services delivered to a patient who is not admitted to a hospital; also known as outpatient care.
  • Ambulatory Surgical Facility
  • A freestanding, independent hospital that only offers surgery on an outpatient basis.
  • Telemedicine
  • An application of clinical medicine wherein medical information is transferred through interactive audiovisual media for medical consulting or remote medical procedures or examinations.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hospitals market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hospitals:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hospitals market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hospitals, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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