Healthcare Industry Overview

Part
01
of three
Part
01

Number of Healthcare Organizations & Systems in the US

After an exhaustive search through several credible sources, we were unable to determine how many healthcare organizations and systems there are in the United States by employee headcount.

RELEVANT INSIGHTS:

  • According to the American Hospital Association, the total number of hospitals in the United States in the year 2016 was approximately 6,210.
  • The number of community hospitals within a system, which is either a multi-hospital or a diversified single hospital system, in 2016 was around 3,494.
  • As of 2016, more than two-thirds (69.7%) of hospitals were a part of the U.S. health system.
  • In 2016, the total number of healthcare organizations and systems in the United States was 626.
  • In the United States, the health care services sector helps to drive employment growth. There were a total of 4.6 million occupations established between 2000 and 2016 for the sector. An estimated 431,100 of these jobs were in outpatient care centers, 728,800 were in home health care services, 726,600 were in physicians’ offices, 130,500 were in nursing care facilities, and 1.1 million were in hospitals.
  • As listed by Data USA, there were 19.1 million (BLS data) employees working in a healthcare organization in 2017.
  • As of 2017, the estimated job growth rate in the healthcare sector was estimated to be around 1.9%.
  • According to the US Department of Labor and Bureau of Labor Statistics, at least 11.6 million additional workers will be required across every sector of the U.S. healthcare industry by the year 2026.

RESEARCH STRATEGY:

Strategy 1:

Our research began by searching for government reports on health care organizations using sources such as the American Hospital Association (AHA), the U.S. National Library of Medicine, and the National Institute of Health, among others. The sources provided information on the number of hospitals and community hospitals within a system. However, further bifurcation based on the number of employees was unavailable.

Strategy 2:

Next, we searched for research reports and articles addressing health care organizations published by sources such as Deloitte, the Center for Health Workforce Studies, PR Newswire, and P&S Market Research to check for details on the leading players in the industry. We wanted to evaluate the healthcare organizations using their annual reports, where such industry statistics are typically available. Nevertheless, the articles were all behind paywalls. Thus, this strategy also did not yield useful results.

Strategy 3:

Next, we searched through the U.S. Bureau of Labor Statistics (BLS) and Data USA to identify the number of people employed in healthcare organizations/systems. This research strategy did not produce useful data. The BLS stated that extra employees will be needed across all sectors of the U.S. healthcare industry by 2026, while Data USA provided bifurcation merely for occupation/profile (e.g., physicians, surgeons, nurses, etc.) or by wages, instead of by the size of the organization in which they operate.

Strategy 4:

We then decided to attempt a triangulation to satisfy the request. Through the AHA, we obtained the number of healthcare organizations in 2016. So, we expanded the scope of our search beyond two years to find any figure for extrapolation, which could be used to determine the CAGR. We wanted to identify older data for future assumptions, then locate a breakdown by employee count. However, the latest statistics published by the American Hospital Association was available for only 2016 and earlier data was unavailable. Thus, the CAGR strategy could not be used to yield further results.

Due to the lack of relevant information, we were unable to provide the number of healthcare systems and organizations in the United States by employee headcount. Most of the information we came across was pertinent to the U.S. healthcare and wellness industry with no specific information found for the healthcare organizations and systems, which are a division of the broader healthcare industry.

Part
02
of three
Part
02

Growth of Healthcare Organizations and Systems in the US

The US Department of Labor and Bureau of Labor Statistics states that workforce demand in the United States healthcare organizations and systems is estimated to reach 11.6 million by 2026.

HEALTHCARE ORGANIZATIONS AND SYSTEMS

  • As per the data from AHRQ, by the end of 2016, there were around 626 health systems in the United States.
  • 69.7% of US Hospitals were part of the US health systems and 44.6% of US physicians were involved in the health systems.
  • 42.7% of US primary care physicians were part of the US health systems at 2017 inception.
  • The number of physicians in the US healthcare systems is 691 on average, ranging from 50 to 20,300.
  • The 10 largest U.S. health systems (based on the number of physicians) account for 21% of the physicians in systems.
  • The number of hospital beds in the US healthcare systems range from 24 to 34,532 with an average of 965.
  • The 10 largest U.S. health systems (based on the number of hospital beds) account for 24.5% of beds.
  • According to the US Department of Labor and Bureau of Labor Statistics, workforce demand in the US healthcare organizations and systems is estimated to reach 11.6 million (additional workforce) by 2026.
  • In addendum, the workforce demand is projected to grow by 18.1% from 2016 through 2026.
  • Private and public hospital employment is projected to see the slowest growth between 2016 and 2026, increasing by about 7% and adding nearly 700,000 jobs.
  • Home healthcare is projected to see the most job growth (54%) across all healthcare systems, adding nearly 500,000 new jobs between 2016 and 2026.
  • Additionally, jobs in offices of healthcare practitioners (physicians, dentists, and other health practitioners) are expected to grow by 21%, adding more than 844,000 jobs during the same period.
  • The overall national healthcare spending in the US, which acts as a driver of the growth of healthcare organizations and systems, is projected to grow at an average rate of 5.5% per year from 2018-27 and will reach nearly $6.0 trillion by 2027.
  • The US healthcare spending per person is expected to reach $11,674 per person in the US by 2022.
  • The US healthcare spending is projected to grow 0.8% faster than Gross Domestic Product (GDP) per year from 2018-27. As a result, GDP is expected to rise from 17.9% in 2017 to 19.4% by 2027.

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:

Overview

Despite an extensive search, we were unable to discover statistics that reveal the growth of healthcare organizations and systems in the United States. The data that we came across were about the healthcare spending growth in the US, healthcare trends, growth of the workforce in the healthcare organizations, and the distribution of health systems in the US. The primary reason for the information to be missing can be its niche and fragmented nature due to which no projections have been made. All the projections from the government/statutory bodies and research organizations are about the US healthcare and well-being sector in general.

The various strategies deployed by us to identify the required information is provided below:

Checking Research Reports

We looked for research reports on various websites such as Deloitte, McKinsey, Grandview Research, IBIS World, Mordor Intelligence, Reuters, Report Linker, Global News Wire, etc. regarding the growth rate of healthcare organizations and systems in the US over the next 3-5 years. The reports found on the aforementioned sources primarily elucidated upon the growth of health care spending and general healthcare trends. There was no information about the projected growth rate of the healthcare organizations and systems in the US. We also tried to find paywalled research reports. But, they focused on the healthcare industry in general, nothing specific to what we were looking for.

Scanning Media Sources

We looked into media sources such as Forbes, WSJ, Business Insider, Bloomberg, Reuters, Live Mint, etc. and government and statutory sources such as CMS, American Hospital Association (AHA), Fact Sheet Prepared by The U.S. Health Care System, US National Library of Medicine, National Institutes of Health, etc. And, US-specific healthcare blogs and magazines such as HHS Blog, Healthcare Newsletter, Experian Health, and other similar sources. All these are potential sources where predicted growth rate numbers regarding industries and sectors are quoted, mostly from paid reports or from internal research studies conducted by the government departments. However, again, all the information found focused only on healthcare spend projections and future healthcare sector trend predictions.

Examining the Websites of Healthcare Organizations

Our third strategy was to visit the official website of some of the leading healthcare organizations and examine their annual reports, supplemental information, blogs, and press releases. 'Agency for Healthcare Research and Quality (AHRQ)', 'National Center For Patient Safety (NCPS)', and 'National Institutes of Health (NIH)' are some of the organizations we looked into. Typically, companies disclose some information regarding the industry they operate in through their filings, especially annual reports. Hence, our idea was to check if any of them have provided any data related to the growth of healthcare organizations and systems in the US. However, the information found was about the services, funding, grants, and key programs run by each organization.

Triangulation

We decided to triangulate the required information by making use of the current and forecasted number of healthcare organization and systems in the US. Then, use a CAGR calculator to determine the industry growth rate in the next 3-5 years. However, despite looking exhaustively into relevant databases, no such information was detected. Here, again, we found another report covering the entire healthcare industry.

Broadening The Scope

As our last resort, we decided to expand the scope and find articles that do not fulfill the two years time frame. With this approach, we looked for outdated yet relevant information that might address the question. The idea was to locate old reports containing data about the growth rate for a large period such as a report from the year 2016 providing a five-year forecast. Then, use the data as a proxy to determine the growth in the next three years. However, this search attempt did not return any relevant information. We only found extraneous data which did not prove to be useful.
Part
03
of three
Part
03

Healthcare Organizations and Systems - Expected Workforce Demand

According to the US Department of Labor and Bureau of Labor Statistics, workforce demand in the US healthcare organizations and systems is estimated to reach 11.6 million (additional workforce) by 2026. Replacement of aging healthcare workforce from 2016 through 2026 account for 8.1 million of the demanded workforce, which is approximately 810,000 annually while new jobs account 3.5 million, which is approximately 350,000 annually. Hospitals, offices of practitioners, nursing homes, home health, and other ambulatory care accounts for 39%, 29%, 15%, 8%, and 9% of the total needed workforce respectively.

PROJECTED WORKFORCE DEMAND IN THE US HEALTHCARE ORGANIZATIONS AND SYSTEMS

  • According to the US Department of Labor and Bureau of Labor Statistics, 11.6 million additional workforce will be needed across all sectors of the US healthcare organizations and systems by 2026.
  • Replacement of aging workforce in the industry account for 8.1 million of the demanded workforce, which is approximately 810,000 annually.
  • New jobs account for 3.5 million additional workforce, which is approximately 350,000 annually.
  • Healthcare organizations and systems workforce demand is projected to grow by 18.1% from 2016 through 2026.

PROJECTED WORKFORCE DEMAND (NEW JOB) BY SECTOR

  • Home health care — 500,000 workers
  • Offices of health practitioners (physicians, dentists, and other health practitioners) — 844,000 workers
  • Private and public hospital — 700,000 workers

PROJECTED WORKFORCE DEMAND BY PROFESSION (2016 THROUGH 2026)

  • Personal Care Aides — 266,400 (replacement — 191,000 and new job — 75,400)
  • Registered Nurses — 134,600 (replacement — 43,700 and new job — 90,900)
  • Nursing Assistants — 113,100 (replacement — 90,900 and new job — 16,400)
  • Home Health Aides — 110,900 (replacement — 68,300 and new job — 42,600)
  • Medical Assistants — 50,400 (replacement — 31,900 and new job — 18,500)
  • Licensed Practical Nurses — 36,000 (replacement — 27,100 and new job — 8,900)
  • Dental Assistants — 25,100 (replacement — 27,100 and new job — 6,500)
  • Pharmacy Technicians — 18,600 (replacement — 13,800 and new job — 4,800)
  • Medical and Health Service — 17,500 (replacement — 10,500 and new job — 7,000)
  • Healthcare Social Workers — 10,200 (replacement — 6,900 and new job — 3,300)
  • Physicians and Surgeons — 10,800 (aging workforce replacement — 5,800 and new job — 5,000)
  • Nurse Practitioners — 9,200 (replacement — 3,600 and new job — 5,600)
  • Physician Assistants — 6,200 (replacement — 2,200 and new job — 4,000)
  • Family and General Practitioners — 4,300 (replacement — 2,100 and new job — 2,200)
  • General Internists — 1,600 (replacement — 800 and new job — 800)
  • Surgeons — 1,500 (replacement — 700 and new job — 800)
  • Nurse Anesthetists — 1,300 (replacement — 600 and new job — 700)
  • Anesthesiologists — 1,100 (replacement — 500 and new job — 600)
  • General Pediatricians — 1,000 (replacement — 500 and new job — 500)
  • Psychiatrists 800 (replacement — 400 and new job — 400)
  • Obstetricians/Gynecologists — 700 (replacement — 300 and new job — 400)

RESEARCH STRATEGY

Your research team leveraged reports on employment projection published by the US Department of Labor, the Bureau of Labor Statistics, and the US Department of Health and Human Services to provide information regarding the US healthcare organizations and systems projected workforce demand. Further information on each of the healthcare profession projected job demand and salary can be access here. Direct care workers demand is estimated at 3.4 million (additional 1.1 million workers) by 2030. Further analysis of the US direct care workforce projection can also be access here. Note: We denoted aging workforce replacement as simply replacement for aesthetic reasons.
Sources
Sources

From Part 01
Quotes
  • "Total Number of All U.S. Hospitals - 6,210"
Quotes
  • "The U.S. health care system is unique among advanced industrialized countries"
Quotes
  • "THE health care services sector is a major driver of employment growth in the United States. Of the 4.6 million health care jobs created between 2000 and 2016, 1.1 million were in hospitals, 728,800 in home health care services, 726,600 were in physicians’ offices, 431,100 were in outpatient care centers, and 130,500 were in nursing care facilities "
Quotes
  • "According to the US Department of Labor and Bureau of Labor Statistics, 11.6 million additional workforce will be needed across all sectors of the US healthcare organizations and systems by 2026."