Med One to One Winter/Spring TWENTY TWENTY ISSUE 62

WHO IS Med One Group?

Written By: Bryce Ray

Who is Med One Group

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!


2019 Hospital Industry Data

Periodically, within this publication, I like to share hospital industry data facts with those who may not have the time or desire to do the research. So enjoy!

(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 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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