Industry Analysis & Industry Trends
Hospitals occupy an important place in the United Kingdom's health-care system by providing care for people with acute illnesses, planned surgeries and accidents and emergencies. Technological change, rising household incomes and an ageing UK population are all promoting demand for hospital services. The Hospitals industry is expected to generate revenue of £67.8 billion in 2012-13, an increase of 0.6% on 2011-12. Hospital bed numbers have been falling for almost three decades because people are being treated more quickly and medical advances have translated into fewer people visiting or staying in hospital.
Industry revenue is expected to increase at a compound annual rate of 2.0% during the five years through 2012-13... purchase to read more
Industry Report - Industry Investment Chapter
The level of investment required is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs are indicative of a high level of investment in depreciable assets such as buildings and equipment; therefore, high capital intensity. Conversely, comparatively high wage costs are indicative of high labour intensity.
The Hospitals industry exhibits a low level of capital intensity. This is reflected by its capital-to-labour ratio, indicating that for £1.00 spent on the use and replacement of capital equipment, £11.5 are spent on labour in terms of wages and salaries. Labour costs account for 57.5% of industry revenue while depreciation expenses occupy 5.0%... purchase to read more