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Micro-hospitals Market - Global Industry Analysis 2025

03-06-2018 08:02 AM CET | Health & Medicine

Press release from: CMI - Research Reports

Micro-hospitals are small scale inpatient facilities with eight to 15 beds and in an area of 15,000 to 60,000 square feet on an average. Micro-hospitals have large operation area and scale of operation as compared to ambulatory centers and emergency care centers, however, is smaller as compared to large scale hospitals. Micro-hospital offers services such as emergency services, pathology lab services, and pharmacy and imaging services. Some of these also provide primary care and dietary services or surgical services. Micro-hospitals operate in metropolitan area, within range of 20–25 miles of large scale hospitals. The initial investment cost is lower, and can be built faster than large scale hospitals, due to less complexity in their operations and infrastructure.

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Lower investment cost, higher accessibility, and value-based care are expected to be factors driving growth of the micro-hospitals market

Micro-hospitals are gaining significant popularity, as these are targeting service gaps in ambulatory centers and free standing emergency rooms such as inability to provide short term in patient stay. Also it has edge over large scale hospitals in few parameters such as low capital investment, lesser time associated with construction of micro-hospitals than large scale hospitals. This is propelling growth of micro-hospitals market. Micro-hospitals offer patient-centric care, convenience (In terms of number of services it offers), and speedy access to facilities, as the number of patients are low in these. Some large scale hospitals may not be able to provide same quality of care or facilities, due to large volume of patient inflow. This is expected to drive growth of the micro-hospitals market. Moreover, the cost for services is lower than large scale hospitals. Micro-hospitals require similar licensing and has to adhere to regulations similar to large scale hospitals, which makes them eligible for medical reimbursement. Therefore, patients are increasing inclining towards these hospitals, which would aid in micro-hospital market growth.

However, micro-hospitals do not have all the facilities, required for certain complicated surgeries or emergencies, and some patients may need to shift to larger hospitals. This may be a factor for hindering growth of the market, as patient might feel skeptical about approaching micro-hospitals. Micro-hospital concept is still emerging and slower penetration of micro-hospitals due to slower adoption rate results in the slow growth of the market.

Micro-hospitals Market Taxonomy:

On the basis of location, the micro-hospitals market is segment into:

Tier 1 cities
Tier 2 cities
Tier 3 cities

On the basis of area of occupation, the micro-hospitals market is segment into:

15,000–40,000 Sq. Feet
More than 40,000 Sq. Feet

On the basis of end user, the micro-hospitals market is segment into:


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The U.S. is expected to account for largest share in the global micro-hospitals market over the forecast period

The U.S. is expected to account for the largest shareholder in global micro-hospitals market, over the forecast period. This is owing to increasing joint ventures between companies to open micro-hospitals in the country, due to increasing interest towards micro-hospitals by large scale hospital chains. For instance, in December 2017, Allegheny Health Network announced plans to build four micro-hospitals in Pittsburgh, U.S. through partnership with Emerus (largest micro-hospital operator in the U.S.) by end of 2019. Also, increasing per capita health care expenditure ion the market is expected to be another factor for growth of the market in the country. According to OECD, 2017 report, the U.S. has highest per capita health expenditure of around US$ 10,000 globally and amongst all OECD countries. Reimbursement benefits at micro-hospitals owing to plans such as affordable care act is also, expected to aid in increasing adoption of these. According Centre for Disease Control and Prevention, 2017, around 90% people in U.S. have insurance coverage and thus, are potential users of micro-hospitals. Aroud19 states in the U.S. have micro-hospitals, therefore, further expansion in others states is expected to propel growth of the micro-hospitals market over the forecast period.

Key players in the market are focusing on opening new micro-hospitals in various regions, in order to expand its geographic presence. Furthermore, they are focusing on joint ventures and partnership strategies, in order to expand their market share. For instance, in 2017, Mercy Health, Franciscan Health, Dignity Health, and Christus Health announced plans to open new micro hospitals in different locations across the U.S. Also, in May 2017, Emerus and Memorial Hermann Health System entered into joint venture agreement to open new micro-hospitals in different regions of U.S.. Some of the key players in the micro-hospitals market are Emerus Hospitals, SCL Health, Baylor Scott & White Saint Luke’s Health System, Dignity Health, Baylor Health Care System, and Christus Health.

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