U.S. Academic Medical Centers Market Size, Share & Trends Analysis Report By Region (Northeast, Southeast, Southwest, West, Midwest), And Segment- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. academic medical centers market size was estimated at USD 950.9 billion in 2022 and is expected to surpass around USD 1,605.89 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 5.38% during the forecast period 2023 to 2032.

Key Takeaways:

• Based on the region, the Northeast region held the largest market share in 2022. Many prestigious universities and research institutions that often collaborate with academic medical centers are available in the region, which contributes to the high market share
• Numerous AMCs expanded their revenue streams by engaging in various community health system and physician partnerships. For instance, in October 2022, Tulanve University and LCMC Health partnered for care expansion across Southeast Louisiana and to improve medical training and innovation in the region
• The adoption of technologically advanced solutions such as telehealth, EHR, and others is expected to improve patient care and enhance the profitability of the facilities. This is contributing to the growth of the market

U.S. Academic Medical Centers Market Report Scope

AMCs are widely recognized for delivering comprehensive patient care, conducting extensive research initiatives, and playing a pivotal role in educating upcoming healthcare professionals. These institutions consist of medical schools and affiliated major teaching hospitals. The market is majorly driven by the rising funding for academic & research programs, a growing shortage of physicians across the U.S., and an increasing number of AMCs.

The growing shortage of physicians in primary and specialty care settings is expected to drive the market's growth over the forecast period. The physician shortage could have compounding effects on patient care, specifically the aging population. Medical schools have increased the class sizes to address the country's physician shortage. According to the Association of American Medical Colleges, 26 new medical schools opened in the last ten years in the U.S. Moreover, these institutions expanded the enrollment for the courses to ease the shortage of physicians. According to the same source, the number of first-time applicants in medical schools across the U.S. increased by around 21.3%.

AMCs rely on publicly funded programs to sustain their research efforts and cover a substantial portion of their services. The U.S. federal government is the primary source of research funding, constituting a noteworthy segment of the average AMC's income. For instance, in August 2023, USA Health received USD 1.5 million in funding from the U.S. federal government for the pediatric imaging equipment for the USA Health Children’s & Women’s Hospital. Furthermore, Medicare contributes billions annually towards graduate medical education.

The COVID-19 pandemic negatively impacted the market in the early phase on multiple levels, including the impact on medical students, recruitment & physician shortage, and the financial impacts, among others. Moreover, the pandemic halted the research operations at these centers & adversely affected the research infrastructure and pipelines in many AMCs across the country. For instance, according to an article published in the National Library of Medicine, the AMCs lost around 24% of their research productivity during the pandemic. Moreover, the researchers incurred losses of around USD 2,000 to USD 100,000 per research program.

Regional Insights

Based on the region, the U.S. Academic Medical Centers Market (AMC) market is divided into Southeast, West, Midwest, Southwest, and Northeast. The Northeast region held the largest market share of 31.9% in 2022. This can be attributed to the presence of major AMCs in the region and continuous innovations in the market. The regional organizations are tapping into new opportunities in the market, including advancement in research and operations and expansion of teaching capacity on the campuses. For instance, in 2021, Massachusetts General Hospital operated as the largest independent hospital in terms of annual funding received with an annual budget of USD 1.6 billion.

The Southwest region is expected to witness the fastest growth over the forecast period. This high growth can be attributed to the opening of several AMCs in the region and increased funding for research and education in this region. For instance, in September 2022, UT Southwestern opened UT Southwestern Medical Center at RedBird, the first-ever AMC campus in Southern Dallas County, Texas. It is the sixth outpatient medical center of UT Southwestern, offering various services.

Key Companies & Market Share Insights

The market is shifting towards consolidation, and players are broadening their relationships with physicians, hospital networks, and care providers in the community to gain maximum market share. These players are adopting strategies including mergers, partnerships, collaborations, affiliations, joint ventures, and other agreements. For instance, in March 2023, Valleywise Health opened a new AMC in Arizona and replaced the 50-year-old facility. Valleywise Health is the public teaching health system & only academic burn center across Arizona. Some prominent players in the U.S. academic medical centers market include:

• Weill Cornell Medicine
• Cleveland Clinic
• Vanderbilt University Medical Center
• University Hospitals
• The General Hospital Corporation (Massachusetts General Hospital)
• Stanford Health Care
• UAB Health System
• Mayo Foundation for Medical Education and Research (Mayo Clinic)
• Cedars-Sinai
• The Johns Hopkins University
• UC San Diego Health
• Icahn School of Medicine at Mount Sinai

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Academic Medical Centers market.

By Regional 

• Southeast
• Southwest
• Northeast
• Midwest
• West