Healthcare Logistics and Transportation: Industry growth that delivers value
Since MedSpeed’s inception, we’ve believed in the important role healthcare logistics and transportation can play in the healthcare industry. A recent global report about the growth of the healthcare transportation services market studies that question.
According to the 151-page report for an analysis conducted by IndustryARC, healthcare transportation/logistics is a burgeoning business with significant projected growth. IndustryARC estimates that the global healthcare transportation services market will reach $93.2 billion in 2021. That reflects a compounded annual growth rate (CAGR) of 4.17% from $73.48 billion in 2015.
One of the major driving factors is the growth of the worldwide geriatric population. However, the report also notes that some of the major factors driving this market include “increasing emphasis on improving the healthcare system, growing need for quick transportation of samples and specimens for testing and increased focus on reducing logistics cost.” These are all points that we are seeing in the market.
I think one reason IndustryARC anticipates this kind of growth in the market is that while transportation is typically only a small share of a hospital’s or health system’s budget, it touches and impacts nearly the entire system. Done right, intra-company logistics can create ongoing value because it uses transportation as an asset to drive savings on the expenditures that are outside of transportation, yet still impacted by it.
Think about that: a small budget line item impacting the whole. It’s no wonder the projected growth is so high; that’s a very clear value.