U.S. Hospital Emergency Department Market is estimated to be valued at USD 185.76 Bn in 2025 and is expected to reach USD 270.22 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of5.5% from 2025 to 2032.
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.
|
Current Events |
Description and its Impact |
|
Healthcare Workforce Shortages |
|
|
Telehealth Policy Shifts |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
The integration of artificial intelligence into the U.S. hospital emergency department is transforming the workload of healthcare professionals by improving efficiency, accuracy and patient care. Application of AI in emergency department includes triage, diagnosis, and treatment planning. Along with that, AI also manages patient workflow and optimizes staffing. AI holds the potential to enhance triage systems, predict disease specific risk, estimate staff needs and interpret imaging findings in the ED.
In April 2025, Adventist HealthCare, based in Gaithersburg, Maryland, launched an initiate in its emergency department to help enhance patient safety and care efficacy. KATE AI, a software that helps the care term to ensure the safety and consistency of triage at Adventist HealthCare Shady Grove Medical Center, Adventist HealthCare White Oak Medical Center and Adventist HealthCare Fort Washington Medical Center. The AI tool complements the training and expertise of emergency nurses, supporting and validating their decision-making skills.
In terms of insurance type, the Medicare & Medicaid segment is expected to dominate the U.S. hospital emergency department market with the share of 65.9% in 2025 and is anticipated to expand further during the forecast period. The growth of the segment is attributed to the increase in penetration of health insurance among the US population. The primary driver of the segment is the characteristics of providing vital health insurance coverages for specific population. Medicare offers coverage for 65 and older people and people with certain disability. While, Medicaid covers low-income individual and families. Both the programs together have the potential to significantly improve access to healthcare and provide a safety net for valuable population. According to Centers for Medicare & Medicare Service, at present, over 12.2 million Medicare-Medicaid enrollees in the United States.
In May 2025, the U.S. Centers for Medicare & Medicaid Services (CMS) announced plans to enhance oversight to prevent states from using Medicaid funds to subsidize healthcare for illegal immigrants. Medicaid, a federal health insurance program, serves over 71 million low-income Americans.
In terms of condition, the 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. The occurrence of patients with infectious disease are common in emergency department due to requirement for immediate evaluation and treatment. The ED encounter a wide range of infectious disease from pneumonia to potentially life-threatening conditions like septic shock. According to CDC, there are around 3.8 million emergency department visits each year where infectious and parasitic diseases are the primary diagnosis. According to National Institute of health, each year, about 23 million Americans visit a doctor’s office or clinic seeking treatment for infections. This is further adding to the U.S. hospital emergency department market share.
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.
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 U.S. hospital emergency department market growth. This trend is also expected to continue over the forecast period.
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.
Another factor which is driving the growth of the U.S. hospital emergency department market is the rising demand for chronic diseases management 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.
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).
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 185.76 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 5.5% | 2032 Value Projection: | USD 270.22 Bn |
| Segments covered: |
|
||
| Companies covered: |
Parkland Health & Hospital System, ST. Joseph's Health, Natchitoches Regional Medical Center, Montefiore Medical Center, Lakeland Regional Health, USA Health, and Schoolcraft Memorial Hospital, among others. |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
The U.S. Hospital Emergency Department (ED) market is in a state of operational strain and strategic inflection. The biggest pressure point is not capacity—though many would point to boarding or hallway care—but the structural misalignment between clinical acuity and economic prioritization. In 2023, over 130 million ED visits were recorded in the U.S., yet less than 4% of hospitals reported full alignment between ED workflows and hospital-wide digital infrastructure, according to AHA surveys.
Operational inefficiency is not a systems problem—it's a leadership gap. Despite rapid digitization elsewhere in the care continuum, EDs remain digital orphans. Triage remains manually dependent in over 60% of high-volume urban hospitals, even though automated triage tools like AI-enabled EHR-integrated modules have proven to reduce average wait times by 17% in pilot deployments at systems like Mount Sinai and Banner Health.
Moreover, the myth of ED overuse by non-urgent patients is overplayed. A CDC analysis found that only 13% of ED visits were for non-urgent issues. The real challenge is the fragmentation between emergency medicine and post-acute pathways. For example, in states like Texas and Florida, more than 30% of ED discharges lack follow-up care coordination, resulting in costly return visits—often within 72 hours. The ED, in effect, is the most expensive front door to a disintegrated system.
Meanwhile, the staffing crisis is no longer cyclical—it is systemic. Over 35% of ED physicians report burnout rates exceeding 60%, according to ACEP. The new CMS staffing minimums may look good on paper, but they’re divorced from real-world resource pools, especially in rural areas where more than 600 hospitals operate without full-time ED physicians.
Investment is flowing into the wrong vectors. Capital continues to chase telehealth and urgent care satellites, which are not substitutes but diversions. Tele-ED platforms—when integrated within hospital command centers—show real promise. In states like Massachusetts, EDs using real-time virtual rounding for Level 4-5 patients have cut unnecessary imaging by 22%, lowering throughput bottlenecks without compromising care.
In sum, this market doesn’t need more beds or monitors, it needs better governance, interoperability, and alignment with primary and behavioral health systems. Without that, no amount of AI, real estate expansion, or federal funding will resolve the underlying dysfunction. This is not a technology problem, it’s a design failure.
*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.
Share
Share
About Author
Komal Dighe is a Management Consultant with over 8 years of experience in market research and consulting. She excels in managing and delivering high-quality insights and solutions in Health-tech Consulting reports. Her expertise encompasses conducting both primary and secondary research, effectively addressing client requirements, and excelling in market estimation and forecast. Her comprehensive approach ensures that clients receive thorough and accurate analyses, enabling them to make informed decisions and capitalize on market opportunities.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
