Industry

Industry drivers: population growth and healthcare spending

Medical Facilities capitalizes on the attractive industry fundamentals for alternative surgical facilities. We serve one of the largest and fastest growing sectors in the U.S. economy.

Demand for surgical services that our facilities provide is expected to be driven by overall population growth, an increasing proportion of older people, and expanded coverage under healthcare reform. According to the Centers for Medicare & Medicaid Services projections published in July 2015, total health spending growth in the United States is expected to average 5.8% over 2014-2024. The insured rate is expected to rise from 86.0% to 92.4% as the number of uninsured is projected to fall by 18 million over the next 11 years (Source: Centers for Medicare & Medicaid Services, 2014-2004 Projections of National Health Expenditures Data Release, Press Release of July 28, 2015).

A key trend in the sector, growth in outpatient procedures, has been widely adopted throughout the healthcare system, enabling a larger number of surgeries to be supported by the same infrastructure. Alternative surgical facilities, such as those operated by Medical Facilities, are a key provider of outpatient procedures and now provide the majority of the operations.

Our surgical specialty hospitals are well-situated in geographic regions that have proven to be resilient against a challenging economic environment. In addition, the 65-years-and-over age group represents a higher percentage of the population compared with the national percentage.