Healthcare spending is predicted to grow by 5.5 percent annually through 2027, and health systems are angling to position themselves through service expansion to receive some of that spend.

Hospitals and health systems will have to choose, based on the needs of their patient populations as well as opportunity to attract new patients and revenue, which services to expand and add. These decisions may lead them to avoid spending resources on specialization (like becoming a center of excellence) so that they can add services. If their populations require service expansion due to a lack of other healthcare options in the area, they may be incentivized by the Affordable Care Act to provide new services. Or they may be incentivized by the financial opportunity represented by the service line expansion.

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