Healthcare services and technology subsegments to grow 9% CAGR through 2028

HST profit pools are expected to nearly double the size of payer profit pools.

Healthcare services and technology (HST) subsegments, which generated $65b in earnings in 2023, are projected to rise at a 9% compound annual growth rate (CAGR) until 2028, nearly doubling the size of current payer profit pools.

In contrast, payer profit pools, valued at $55b in 2023, are expected to grow at 7% CAGR during the forecast period, according to a McKinsey & Company report.

Companies across the healthcare value chain are seeking ways to boost value by entering attractive new subsegments.

“By entering HST markets, large healthcare incumbents can gain immediate access to faster-growing profit pools with the potential to substantially improve top-line growth,” the report said.

Acquisitions in this space enable companies to integrate new revenue streams quickly while accelerating the scale and growth of acquired assets through their established networks and investments.