Hospitals NAICS 622110

        Hospitals

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Industry Summary

The 2,600 hospitals in the US provide acute care and surgeries for patients on either a scheduled or emergency basis. Most hospitals are considered community hospitals, and are operated by non-profit, for-profit, or state or local government organizations.

Conflict with Insurers

While hospitals depend on private insurers for revenue, both groups struggle to agree on how best to treat patients.

Labor Shortages

Hospitals struggle with shortages of nurses, medical technicians, pharmacists, and other clinical workers.


Recent Developments

Jun 3, 2025 - Health Systems Respond To Increasing Worker Burnout
  • Health system C-suites are now identifying unique opportunities to address burnout and create a new, resilient culture for the future, according to Becker's Hospital Review. Nurse and physician shortages are expected to worsen over the next five years while demand for care increases. Clinical teams are reaching peak stress levels as a result. Saad Ehtisham, Novant Health senior vice president and president of acute care operations said that the system is ditching the “shortage mindset” to focus on the clinicians already within the system. “With clinician unemployment below 2%, the real opportunity lies in increasing the time we spend with patients and investing in support roles to elevate their impact,” said Ehtisham. “We’re also embracing the shift toward a well-being economy, recognizing that caring for our team members is key to retention, upward mobility and long-term competitive advantage.”
  • Nineteen states and the District of Columbia filed a lawsuit against the federal government to block the Trump administration’s restructuring of the US Department of Health and Human Services (HHS). The plaintiffs argue that the restructuring is an “unconstitutional and illegal dismantling of the department.” They contend that the government has violated hundreds of laws and bypassed congressional authority by enacting the plan, leaving HHS unable to execute many vital functions. The plaintiffs also said that the restructuring has significantly hindered mental health and substance use services, HIV/AIDS response efforts, maternal mortality monitoring and disability support, among other key services.
  • Nearly 750 rural US hospitals are at risk of closure due to financial problems, according to Becker's Health Care. Nearly half of those hospitals are at immediate risk of closure. The count of 748 at-risk rural hospitals comes from an analysis by the Center for Healthcare Quality and Payment Reform of hospital financial information collected by the Centers for Medicare and Medicaid Services. The CMS analysis lists two distinct levels of vulnerability among rural healthcare facilities: risk of closure and immediate risk of closure. Nearly every state has hospitals at risk of closure, measured by financial reserves that can cover losses on patient services for six to seven years. In over half of the states, 25% or more of rural hospitals face this risk, with 11 states having a majority of their rural hospitals in jeopardy. There are 315 rural hospitals at immediate risk of shutting down due to severe financial difficulties. Hospitals facing immediate threat of closure are those for which financial reserves could offset losses on patient services for two to three years at most.
  • Hospitals slightly increased their prices during 2024, according to the US Bureau of Labor Statistics (BLS). Hospital industry employment and average wages for nonsupervisory employees increased slightly during the first three months of 2025, according to the BLS.

Industry Revenue

Hospitals


Industry Structure

Industry size & Structure

The average hospital employs about 2,000 workers and generates $491 million in annual revenue.

    • There are about 2,600 hospital firms in the US with about $1.3 trillion in annual revenue and employing 5.1million people.
    • Most hospitals are considered community hospitals, and are operated by non-profit, for-profit, or state or local government organizations.
    • A typical hospital has 100 to 300 beds and serves 5,800 to 11,200 patients annually.
    • The largest US hospital companies include Hospital Corporation of America (HCA), Adventist Health, and Tenet Healthcare Corporation.
    • The average length of stay in a hospital is 4-5 days.
    • The average hospital occupancy rate in urban hospitals is about 62%, while the occupancy rate in rural hospitals is 37%.
    • The majority of hospital employees are dedicated to patient care (doctors, nurses, aides and clinical workers). Other professions within a hospital are office/administrative support, cleaning and maintenance, management, food service, and community and social services.

                                    Industry Forecast

                                    Industry Forecast
                                    Hospitals Industry Growth
                                    Source: Vertical IQ and Inforum

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