10 Most Profitable For Profit Hospitals in America

The 10 most profitable for profit hospitals in America provide top-notch healthcare to a wide array of patients, especially in urban areas, as well as substantial returns to their shareholders, even while surrounded by some measure of controversy.

First, let’s talk about the difference between non-profit and for-profit hospitals. Non-profit hospitals are required to invest all of their profits back into the hospital’s services and are exempted from paying state and federal taxes on income and property. They are also required to report all of their offered community benefits, including Medicaid-covered services, or others for which the hospital does not receive compensation or which are unprofitable.

On the other hand, for-profit hospitals are owned by private investors or public shareholders and are able to distribute their profits to these owners. They can also raise capital through their investors and are required to pay income and property taxes.

Because of this structure, for-profit hospitals are criticized for being more financially beholden to their shareholders, and thus are said to prioritize their interests over the interests of their patients. For instance, for-profit hospitals tend to invest in services that yield higher returns and more revenue. Some even argue that for-profit hospitals may refuse to serve Medicaid patients or those without health insurance, instead preferring to focus on patients with private insurance. However, because for-profit hospitals’ cash flows are more flexible, they arguably are better able to invest in advanced technology and provide higher quality healthcare in general. Thus, they are giving non-profit hospitals a run for their money, which, in turn, compels them to improve their own practices.

Out of all U.S hospitals, just 20% are for-profit hospitals, according to Ashish Jha, a health policy researcher at the Harvard School of Public Health. But whether an institution is for-profit or non-profit, what ultimately matters is the quality of service, and maintaining a low level of medically-induced harm upon patients, and both are certainly capable of providing that, so long as they strategize well and put patients’ needs above all else.

Several hospitals in our list, such as the CJW Medical Center, Las Palmas Medical Center, Medical City Dallas Hospital, and Methodist Hospital, are owned by HCA Holdings Inc (NYSE:HCA). The Nashville-based HCA is one of the largest for-profit operators of healthcare facilities in America and is different from those of its ilk because it owns many hospitals in larger and more populous urban areas. It also has a more diversified stream of revenue because it not only owns hospitals, but also subsidiaries that have other healthcare businesses such as workforce management solutions and low-cost wellness services.

The shares of for-profit healthcare providers like HCA Holdings Inc (NYSE:HCA), Tenet Healthcare Corp (NYSE:THC) (which owns two of the hospitals on this list), DaVita HealthCare Partners Inc (NYSE:DVA), Universal Health Services, Inc. (NYSE:UHS), and Community Health Systems (NYSE:CYH) have been volatile recently, owing to the uncertainty surrounding the Affordable Care Act and President Trump’s proposed alternative, which was unable to gain enough support from the Senate despite being majority Republican. However, several Republicans have vowed that they will continue to work towards repealing Obamacare this year, which has tempered short-term enthusiasm for hospital stocks, which will suffer greatly should a new health bill mean fewer insured Americans. That would be a big blow to hospital stocks, some of which have already been heavily battered in recent years as costs rise and profit falls.

Over the next few pages, we’ll present the 10 most profitable for profit hospitals in America, beginning with Hahnemann University Hospital in Philadelphia. We collected data from the American Hospital Directory, Modern Healthcare and Becker’s Hospital Review. Our list ranks the for-profit hospitals based on total patient revenue, getting previously published lists from the latter two sources and then rearranging them according to updated revenue data from the American Hospital Directory. For hospital rankings on a larger scale, check out our list of the 11 biggest hospitals in the world.

10. Hahnemann University Hospital (Philadelphia) — $3.44 billion

As one of the hospitals on our list that also provides medical training, Hahnemann University Hospital works in partnership with Drexel University College of Medicine to provide education to healthcare providers and students alike. A 496-bed hospital, Hahnemann, which is owned by Tenet Healthcare Corp (NYSE:THC), counts cardiac services, heart failure and transplantation, OB/GYN, medical and radiation oncology, bone marrow transplantation, renal dialysis and kidney transplantation among its many specializations. It also offers orthopedic surgery, bariatric procedures, and organ transplant, among other services. The hospital is a Level I Regional Resource Trauma Center for adults with an aeromedical transport program for those who are critically ill.

9. Brookwood Baptist Medical Center (Birmingham, Ala.) — $3.44 billion

Brookwood Baptist Medical Center provides advanced treatment across five hospitals in central Alabama, focusing on timeliness of care and specialization. This institution employs about 1,500 medical professionals, including specialty and primary care physicians. Its many services include cancer care, children’s services, digestive disorders, gynecological surgery, rehabilitation services, robotic surgery, a sleep center, weight loss surgery, and even workforce wellness. It has 569 total staffed beds and is part of the Brookwood Baptist Health community.

8. Las Palmas Medical Center (El Paso, Texas) — $3.73 billion

As part of the Las Palmas Del Sol Healthcare system in El Paso, Las Palmas Medical Center, next on our list of most profitable for profit hospitals in America boasts expertise in emergency room medicine (Level III Trauma), cardiology, women’s services, labor and delivery, neonatal intensive care, neuroscience, pediatric care, oncology services and wound care management. It is also the only kidney transplant center in the region. It is a 327-bed hospital that has a free-standing 40-bed inpatient Rehabilitation Hospital for patients with orthopedic conditions. Branching out from healthcare services, it also have a wellness facility called the Las Palmas LifeCare Center. Las Palmas is owned by HCA Holdings Inc (NYSE:HCA).

7. CJW Medical Center (Richmond, Va.) — $4.36 billion

Another HCA Holdings Inc (NYSE:HCA) affiliate, CJW Medical Center ranks seventh on our list of the 10 most profitable for profit hospitals in America. The medical center is composed of the Chippenham campus and the Johnston-Willis campus. The Chippenham Hospital has 466 beds, while the Johnston-Willis Hospital has 292 beds. Chippenham is a Level II Trauma Center and a Certified Chest Pain Center, and is known in the region for being one of the most trusted in fast emergency care, as well as in orthopedics, joint care, behavioral health, and cardiovascular care. Founded in 1909, the Johnston-Willis Hospital is an award winner for brain tumor care and stroke care, and its wide range of services includes cancer care and neuroscience. Both campuses are top performers in the areas of advanced primary stroke, heart attack, heart failure, perinatal care, pneumonia, hip and knee replacement, and surgical care.

6. Medical City Dallas Hospital (Dallas) — $4.54 billion

HCA Holdings Inc (NYSE:HCA)’s Medical City Dallas Hospital, number 6 on our list of most profitable for profit hospitals in America has a 1,200-strong medical team with over 400 in-house physician specialists. This 796-bed tertiary care center has taken in patients not just from the U.S, but also from over 75 other countries. It also has separate adult and pediatric emergency rooms and multiple outpatient clinics and diagnostic centers. Medical City Dallas Hospital’s more than 95 specialties include a center for rehabilitation, robotic surgery, and a bariatric and metabolic institute. It even has a dedicated maternal transport team for high-risk fetal and obstetrical patients that can either deploy nurses by ground ambulance, helicopter or fixed wing aircraft, with a self-contained mobile intensive care environment, to further its goal of improving neonatal outcomes.

5. Oklahoma University Medical Center (Oklahoma City) — $4.54 billion

Oklahoma University Medical Center, Oklahoma’s largest hospital and one of the most profitable for profit hospitals in America, is a teaching hospital with 350 beds that delivers “Comprehensive Care for All Oklahomans.” This hospital has the state’s only Level I Trauma Center, as well as a complete range of heart care services at its OU Medicine Cardiovascular Institute. It also specializes in stroke patient care with neurology and neurosurgery services, including diagnosis and treatment of epilepsy and advanced “keyhole” and “awake” brain surgeries. The OU Medical Center collaborates with the University of Oklahoma’s Stephenson Cancer Center, as well as the Gamma Knife Center for brain tumor treatment, and the Bone Marrow Transplant Center.

4. Doctors Medical Center of Modesto (Calif.) — $4.56 billion

We are continuing our list of most profitable for profit hospitals in America with Doctors Medical Center of Modesto that has been providing medical service to communities in Central Valley, California over 50 years. It has 447 total staffed beds and prides itself on its innovative clinical institutes for heart care, hand and arm conditions, and spinal health. This for-profit hospital also houses the region’s first certified Primary Stroke Center. Other services include Level II emergency and trauma services, behavioral health, cancer, children’s services, neurosciences and neurosurgery, orthopedics, women’s health, and robotic surgery.

3. Sunrise Hospital & Medical Center (Las Vegas) — $5.20 billion

With over 600 beds and over 30,000 admissions so far, the Sunrise Hospital and Medical Center, next on our list of most profitable for profit hospitals in America is the largest acute care facility in Nevada. It shares grounds with the Sunrise Children’s Hospital, likewise the largest of its kind in the state. Sunrise Hospital’s Nevada Neurosciences Institute is the region’s first Joint Commission-certified Primary Stroke Center. Sunrise Hospital has a wide suite of services such as an Accredited Chest Pain Center, a Comprehensive Cancer Center, and an Epilepsy Center. Technological investments have been made in the da Vinci Surgical Robot for minimally invasive surgery, a Gamma Knife Center for brain surgery, and a picture archiving communication system for diagnostic scans.

2. Baptist Medical Center (San Antonio) — $6.42 billion

Tenet Healthcare Corp (NYSE:THC)’s Baptist Medical Center, one of the most profitable for profit hospitals in America, is part of the Baptist Health System, which has been serving San Antonio and South Texas since 1903. This institution believes that healthcare is less about technology and more about quality, compassionate care. Nonetheless, it offers advanced technology and treatment options, including award-winning diabetes, endocrinology, nephrology and pulmonology care. It also has specialized services such as geriatric acute care, sleep labs, a mental health program, advanced radiology imaging technology, and an ostomy clinic. Baptist Medical Center has 1,506 total staffed beds.

1. Methodist Hospital (San Antonio) — $7.66 billion

Methodist Hospital is one of San Antonio’s largest hospitals, with more than 1,500 beds and has admitted over 76,000 patients. Its specialties include cancer services, adult blood cancer and stem cell transplant, gynecological services, palliative care, and neurosciences. Methodist Hospital also boasts advanced medical imaging technologies for better diagnoses and treatment, the Gamma Knife Center for tumor treatment, the Methodist Wound Care Center for hard-to-heal wounds, and the Methodist Endoscopy Center. First opened in 1963, it is now part of the South Texas Medical Center and a hospital system called Methodist Healthcare, which serves the greater San Antonio community.

That concludes the list of the 10 most profitable for profit hospitals in America. Do you have a preference for either non-profit or for-profit hospitals? Share your thoughts with our readers in the comments.

Disclosure: None