In this article, we will be taking a look is the largest hospital system in the U.S. by revenue? If you want to learn about more, head straight to the 20 Largest Hospital Systems in the U.S. by Revenue.
U.S. Hospital Services Market: Growth Projections, Challenges, and Health Disparities
The global hospital services market was valued at a staggering USD 12.31 trillion in 2023 and is projected to reach around USD 22.57 trillion by 2033, growing at a CAGR of 6.05% during the forecast period 2024 to 2033. North America, led by the U.S., emerged as the global leader in 2023, accounting for a 37.82% revenue share.
The U.S. hospital services market size reached USD 2.32 trillion in 2023 and is expected to grow at a CAGR of 4.85% to around USD 3.79 trillion by 2033. There are 6,120 hospitals in the United States as of 2024. However, the number of hospital beds in the U.S. has been declining for years. While the U.S. has a universal healthcare system through Medicare and Medicaid, more than 26 million Americans remain uninsured or underinsured, making it difficult for them to afford hospital services.
According to a Commonwealth Fund study, Americans are more likely to die younger and from avoidable causes compared to residents of peer countries. The study highlights the disparities in health outcomes and access to care in the U.S. compared to other high-income nations.
Economic Impact of COVID-19 and Revenue Trends in Major U.S. Hospital Systems
The COVID-19 pandemic had a significant economic impact on hospitals and healthcare systems across the United States. The American Hospital Association estimated a staggering $202.6 billion in lost revenue for U.S. hospitals and healthcare systems due to the pandemic, averaging $50.7 billion per month. In 2022, the majority (73%) of nonprofit hospitals and health systems analyzed had at least a “strong” level of days cash on hand, though about 9% were “vulnerable” or “highly vulnerable”. The average day’s cash on hand for nonprofit hospitals and health systems was 218 days in 2022, like pre-pandemic levels of 225 days in 2019.
Hospitals have increasingly relied on outpatient services and elective surgeries as revenue sources, with the outpatient share of total hospital revenue growing from 28% in 1994 to 48% in 2018.
Community Health Systems, Inc. (NYSE:CYH) is one of the largest publicly-traded hospital companies in the United States which operates 84 hospitals across 16 states as of September 2021. In Q1 2024, Community Health Systems, Inc. (NYSE:CYH)reported net operating revenues of $3.14 billion, a 0.6% increase year-over-year and beating estimates of $3.093 billion. They also announced the sale of a Tennessee hospital for $160 million to Hamilton Health Care System. Community Health Systems, Inc. (NYSE:CYH)reported net loss of $41 million or $(0.32) per share during the same period, which is an improvement from the prior year’s net loss of $51 million or $(0.40) per share, but deeper than the estimated $(0.16) per share.
Similarly, HCA Healthcare, Inc. (NYSE:HCA) is also one of the largest healthcare services companies in the United States, operating over 180 hospitals and approximately 2,000 ambulatory sites across 21 states and the United Kingdom. HCA Healthcare, Inc. (NYSE:HCA)’s clinical research program, which includes partnerships with academic institutions and pharmaceutical companies, has contributed to the development of new treatments and therapies. In Q1 2024, HCA Healthcare, Inc. (NYSE:HCA) reported revenues of $17.339 billion, up 11.3% year-over-year, and reported net income of $1.591 billion, or $5.93 per diluted share, up 33.1% year-over-year.
A hospital nurse operating a FREEDOM infusion system, demonstrating its user-friendly interface.
Our Methodology
We ranked the 20 largest hospital systems in the U.S by revenue based on their publicly available 2023 revenues.
The Largest Hospital System in the U.S. by Revenue
1. Kaiser Permanente
2023 Revenue: $100.8 billion
Kaiser Permanente tops the list for being the largest hospital system in the US by revenue which serves 12.6 million members across 8 states and the District of Columbia. It operates 737 medical offices, 39 owned hospitals, and 43 retail and employee clinics across 8 states and the District of Columbia. The company reported $935 million in operating income in Q1 2024 and $26.5 billion in operating expenses.
Curious to see which other hospitals stand among the largest hospital systems in the U.S. by revenue? You can check out our full list, the 20 Largest Hospital Systems in the U.S. by Revenue.
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Disclosure. None: The 20 Largest Hospital Systems in the U.S. by Revenue is originally published on Insider Monkey.