Large regional and national healthcare systems are getting bigger and markets are increasingly consolidating, Modern Healthcare's annual survey of hospital systems shows.
Among the nation's biggest for-profit and not-for-profit systems, dealmaking in 2013 created giants with multibillion-dollar annual revenues that rival some Fortune 500 companies. Regional systems acquired nearby hospitals to strengthen their position as local players. And nearly all systems added more physicians to their payrolls: Among survey respondents, doctors employed by systems increased 39% to roughly 67,600 physicians.
The largest U.S. health system by revenue is HCA. The Nashville-based for-profit system ended 2013 with net patient revenue of $38 billion and the No. 1 spot in Modern Healthcare's ranking.
Ascension Health, the second-largest system by revenue, acquired regional health systems in Kansas, Oklahoma and Wisconsin, adding nearly $4 billion in revenue and 32 hospitals to the St. Louis-based system's portfolio. Not-for-profit Ascension ended 2013 with patient revenue of $15.3 billion.
For-profit Community Health Systems, which ended 2013 with 133 hospitals and revenue of close to $13 billion, ranked No. 3. Trinity Health, Novi, Mich., and Catholic Health East, Newtown Square, Pa., merged to create not-for-profit behemoth CHE Trinity Health with more than $12 billion in operating revenue, making it the fourth-largest system.