U.S. HOSPITAL EMERGENCY DEPARTMENT MARKET ANALYSIS

The U.S. hospital emergency department market was valued at US$ 158.2 Bn in 2022 and is forecast to reach a value of US$ 242.79 Bn by 2030 at a CAGR of 5.5% between 2023 and 2030. The U.S. hospital emergency department market is experiencing strong growth due to the rising number of emergency department visits and rising prevalence of chronic diseases in the region. Moreover, rise in penetration of health insurance among the US population and growing geriatric population is expected to boost the market growth. However, factors such as rising preference for convenient care and high cost of emergency care are expected to hamper the market growth.

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 Trends:

Rise in number of freestanding EDs is a recent trend

A freestanding emergency department is an emergency facility that is not physically connected to inpatient services, and provide emergency medical services to those in need. The ability to provide top-notch emergency treatment at even greater levels of customer service is one of the reasons why many hospitals construct freestanding EDs. Hospital-based freestanding emergency departments are a new and evolving care delivery model. There are over 500 Freestanding Emergency Centers across the U.S. This trend is expected to continue over the forecast period.

Rise in adoption of private insurance is another trend

Under the Patient Protection and Affordable Care Act (ACA) (also known as Obamacare), health insurance plans are required to cover emergency services. Private health insurance currently covers a little more than half of the U.S. population, as private insurance companies offer more advantages to the customers compared to that of Medicare/Medicaid. Moreover, extra services and facilities provided by the private insurance companies during the emergency visits has propelled the growth of this segment. This trend is also expected to continue over the forecast period.

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

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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.

Figure 2. U.S. Hospital Emergency Department Market Share (%), By Insurance Type, 2023

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U.S. Hospital Emergency Department Market Segmentation:

The U.S. hospital emergency department market report is segmented into Insurance Type and Condition.

Based on Insurance Type, the market is segmented into Medicare & Medicaid and Private & Others. Out of which, Medicare & Medicaid Segment is expected to dominate the U.S. hospital emergency department market during the forecast period and this is attributed to the increase in penetration of health insurance among the US population.

Based on Condition, the market is segmented into Traumatic Conditions, Infectious Conditions, Gastrointestinal Conditions, Psychiatric Conditions, Cardiac Conditions, Neurologic Conditions, and Others. Of which, Infectious Conditions Segment is expected to dominate the market during the forecast period and this is attributed to the rise in burden of infectious diseases.

Cardiac Conditions Segment is also expected to witness significant growth in the near future and this is owing to increase in prevalence of cardiovascular diseases (CVDs) in the U.S.

U.S. Hospital Emergency Department Market: Key Developments

In January 2023, The Emergency Department at Owensboro Health Regional Hospital (OHRH) launched a new communication tool to improve patient experiences; a mobile platform that will help patients stay updated throughout their visit.

In September 2022, Los Angeles-based CHA Hollywood Presbyterian Medical Center opened a fast track emergency department to expedite care. The system is designed to expedite the treatment of those who need less care, therefore allowing space for those who require more attention.

In August 2022, Virginia Mason Franciscan Health (VMFH) plans to build the state’s first hybrid ER/urgent care centre in Washington. It will be the first of multiple hybrid facilities VMFH plans to open in the Puget Sound region over the next four years using Intuitive Health’s innovative care model of offering emergent and urgent care in a single location.

U.S. Hospital Emergency Department Market: Key Companies Insights

The U.S. hospital emergency department market is highly competitive. This is attributed to the rise in number of visits to Emergency Departments (EDs), as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the U.S. hospital emergency department market are Parkland Health & Hospital System, ST. Joseph's Health, Natchitoches Regional Medical Center, Montefiore Medical Center, Lakeland Regional Health, USA Health, and Schoolcraft Memorial Hospital.

*Definition: An emergency department is a specific area in a hospital that is organized to provide high standard or quality of emergency care to people. It is a part of the hospital that provides 24-hour emergency care to patients who need urgent medical attention.