WHO IS Med One Group?
Written By: Bryce Ray
Last October, I spoke at an Equipment Leasing and Finance Association (ELFA) breakout session panel for the 2019 Annual Conference regarding the differentiation that Med One Group brings to an OEM/Vendor program. During this presentation, I focused on the following key points about Med One:
Who is Med One Group?
» We are a non-bank privately held independent lessor established in 1991.
» We are not your typical equipment leasing company.
» We are a nimble and niche lender focused on acute care hospitals.
» We specialize in LEASING, RENTAL & SALE of medical equipment.
» We are focused on providing value and creative options for the hospitals to obtain essential use medical equipment (short-term, peak-need rentals through long-term financing).
» We have invested significantly in our infrastructure that deals with 'off-lease' equipment, [including] a focused rental & sales group that re-deploys equipment into a secondary use. These key points generated great discussion among our peers within the ELFA. The fact is, Med One is unique even within the equipment leasing and finance industry because we offer one industry segment (hospitals) and medical equipment vendors so many creative, flexible and simple options to obtain and sell equipment. Needless to say, I am grateful and proud to have had the opportunity to share the Med One story within that forum. We are Med One!
Interesting
2019 Hospital Industry Data
(Chart #1) 3 Year U.S. Hospital Count Chart Showing the hospital count from 2017 through 2019. As you will see from the chart in 2019, there has been an increase in the number of total U.S. Hospitals, specifically within the For-Profit Community Hospital and Nonfederal Psychiatric Hospital figures. Although I would like to know the specific reasons for the increases, according to www.aha.org the American Hospital Association had a hospital classification methodology change in 2019 with no additional insight provided. With that said, it appears as though there is an upward trend for new hospitals.
3 Year U.S. Hospital Count Chart
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| Total Number of All U.S. Hospitals | 6,210 | 5,534 | 5,564 |
| Number of U.S. Community Hospitals | 5,262 | 4,840 | 4,862 |
| Number of Nongovernment Not-for-Profit Community Hospitals | 2,968 | 2,849 | 2,845 |
| Number of Investor-Owned (For-Profit) Community Hospitals | 1,322 | 1,035 | 1,034 |
| Number of State and Local Government Community Hospitals | 972 | 956 | 983 |
| Number of Federal Government Hospitals | 208 | 209 | 212 |
| Number of Nonfederal Psychiatric Hospitals | 620 | 397 | 401 |
| Other Hospitals | 120 | 88 | 89 |
(Chart #2) Top 20 – Health Systems by # of Hospitals Owned Anytime I look at a largest health system list, it amazes me that nationally no health system has more than 5% market share. With that said, although there is no material national concentration, many of the largest health systems do maintain a strong regional market share. Additionally, the Top 20 list is constantly changing with mergers and acquisitions. For example, Dignity Health and Catholic Health Initiatives merged and are now CommonSpirit Health, #3 on the list. In the future, we should expect mega-mergers to continue as health systems see consolidation as a path for improved efficiencies and scale. In the future, it is quite possible we will have a national health system with a market share greater than 5%.
Top 20 – Health Systems by # of Hospitals Owned
| # | Health System | HQ State | Status | # Hospitals |
|---|---|---|---|---|
| 1 | HCA Healthcare | TN | For Profit | 185 |
| 2 | Ascension Health | MO | Not for Profit | 151 |
| 3 | CommonSpirit Health | IL | Not for Profit | 142 |
| 4 | Community Health System (CHS) | TN | For Profit | 105 |
| 5 | Trinity Health | MI | Not for Profit | 92 |
| 6 | LifePoint Health | TN | For Profit | 86 |
| 7 | Tenet Healthcare | TX | For Profit | 65 |
| 8 | Providence St. Joseph Health | WA | Not for Profit | 51 |
| 9 | Atrium Health | NC | Not for Profit | 50 |
| 10 | AdventHealth | FL | Not for Profit | 50 |
| 11 | Baylor Scott & White Health | TX | Not for Profit | 48 |
| 12 | Bon Secours Mercy Health | OH | Not for Profit | 48 |
| 13 | Prime Healthcare | CA | For Profit | 45 |
| 14 | Sanford Healthcare | SD | Not for Profit | 44 |
| 15 | Mercy | MO | Not for Profit | 41 |
| 16 | UPMC | PA | Not for Profit | 40 |
| 17 | Kaiser Permanente | CA | Not for Profit | 39 |
| 18 | MercyOne | IA | Not for Profit | 39 |
| 19 | Steward Health Care | IA | For Profit | 37 |
| 19 | Steward Health Care | TX | For Profit | 37 |
| 20 | Christus Health | TX | Not for Profit | 35 |
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