Earlier articles mentioned that the American Healthcare Industry began the process of consolidation subsequent to the passage of the Patient Protection and Affordable Healthcare Act. Gist Healthcare, a company that provides services to the healthcare industry provides weekly information about different facets of the healthcare industry. It recently cited a report released by the Compendium of US Health Systems which is a project sponsored by the United States Department of Health and Human Services.

The compendium publishes data on 626 health systems. A “health system” is “an organization of people, institutions, and resources that deliver health care services to meet the health needs of target populations.”

When a person is released from a hospital, this is known as a “discharge.” According to the Johns Hopkins Medicine website, “A hospital will discharge you when you no longer need to receive inpatient care and can go home. Or, a hospital will discharge you to send you to another facility.”

According to the compendium information summarized by Gist, “Health systems account for more than 90% of all discharges in the U.S., with the largest 11 systems accounting for a quarter of the discharges, and the largest 67 accounting for half. Nonprofit systems dominate the landscape, and many of those are multi-state enterprises”

The Gist summary goes on to state that there were 626 U.S. health systems in 2016, but by 2018, there were 591 remaining health systems.

Health systems are also referred to as “Integrated Delivery Networks” sometimes referred to as “IDR’s.” 77% of hospitals belong to IDR’s. The largest (by revenue) is HCA Healthcare. It is actually larger than the Department of Veterans Affairs. The non-profit healthcare system with the largest number of hospitals is Ascension headquartered in St. Louis with an annual revenue of $22.6 billion.

According to Becker’s Hospital Review, the largest hospital (by beds) in the U.S. is New York-Presbyterian with 2,236 beds. There are two Texas hospitals in the top 10: the first is Methodist Hospital in San Antonio (1414 beds), and the second is Baptist Medical Center in San Antonio (1402 beds). Memorial Hermann Houston is 17th in the U.S. Methodist Hospital Houston is 42nd in the U.S.

Banker Phares is a practicing attorney and founding member of the Estate Planning and Probate Law certification by the Texas Board of Legal Specialization. He is the John and Karen Mast Professor at SFA and teaches in the Department of Economics and Finance.

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