The Fifth Most Profitable Hospital in the U.S. Sits in Dallas
By Admin | July 06, 2016
When it comes to turning a profit, Medical City in Dallas is showing all but four hospitals in the U.S. how it’s done.
A comprehensive study performed by two researchers from Johns Hopkins University pulled data from 3,000 different hospitals: 59 percent nonprofit, 25 percent for-profit, 16 percent public. They found that on average, hospitals marked up their services $5.40 for every dollar in patient care costs incurred. Medical City charged $7.70 for every dollar.
Medical City has a well known history for being one of the area’s most profitable hospitals. And it has a reputation for charging more for common procedures like baby deliveries and joint replacements.
Medical City doesn’t pocket all of its profits. Between 2014 to 2015, it provided $26.6 million in charity care to patients and took on $64.3 million in total uncompensated care. This averages to 1.14 percent and 2.77 percent of its total charges.
Compared to Baylor University Medical Center, a nonprofit hospital, which provided $102.8 million in charity care and $172.8 million in uncompensated services (about 4.92 percent and 8.27 percent of total charges), it isn’t surprising that Medical City is doing so well. (That being said, nonprofit hospitals like Baylor are required by law to provide charity care of at least four percent.)
The 42 year old hospital was a trailblazer when it opened for adopting non standard amenities like natural light and original artwork, both things most hospitals use today.
To read more about how Medical City remains so profitable when other hospitals are facing financial difficulty, read “Study: Medical City Dallas Is The Fifth Most Profitable Hospital in U.S.” posted by D Magizine Healthcare Daily.