Healthcare & Social Assistance

Performance Highlights

COVID-19 created unprecedented challenges for healthcare and social assistance providers, with staffing shortages and rising costs continuing to impact the sector. The healthcare needs of an aging population will require expanded and complex medical and social services.

Geographic Distribution

California, Texas, Florida, and New York have the highest concentrations of healthcare and social assistance providers due to large populations and high healthcare spending. The Southeast region, with its large population and high percentage of residents over 65, requires significant healthcare services.

Industry Outlook

Revenue is expected to grow at a CAGR of 2.7% from 2024 to 2029, reaching $4.1 trillion. Increased healthcare consumption driven by demographic trends and rising healthcare spending will continue to fuel sector growth.

Competitive Forces

The industry is characterized by low concentration and moderate competition. Barriers to entry are high due to significant legal requirements and start-up costs. Successful businesses must navigate complex regulations, secure a multiskilled workforce, and maintain strong reputations.

Major Companies

Notable players include HCA Healthcare, Inc. (1.5% market share), Quest Diagnostics Inc. (0.3% market share), Feeding America (0.1% market share), Brookdale Senior Living Inc. (0.1% market share), and Fresenius Kabi AG (0.0% market share).

Revenue

$3.6 trillion

Employees

24 million

Businesses

3 million

Wages

$1.4 trillion

Economic and External Factors

The industry operates in a highly regulated environment, with numerous federal, state, and local laws enforced by multiple agencies. Healthcare providers received over $200 billion in pandemic-related financial assistance, but the end of this relief has led to financial strain for many facilities.