By John Pritchard
August 2024 – The Journal of Healthcare Contracting
Recently I was on a trip with my 16-year-old daughter, Margaret. We were driving through the middle of nowhere Alabama on our way to visit a college in Mississippi, a state I had never visited. Thankfully the drive was uneventful. I was listening to a Grateful Dead concert on the radio and she was staring at her way-more-interesting-than-me iPhone.
That is, until she asked me a question about my work: “What is it that you do?”
I tried my best to explain that I publish a magazine for the people responsible for acquiring everything a hospital system needs to give great care to their communities. It had been a long time since I had thought big about what our industry is. Honestly, I hate calling healthcare an industry. I like to think the Journal of Healthcare Contracting’s content humanizes our nation’s great IDNs, so Suppliers do their best to craft value for IDNs!
After the conversation with my daughter, I thought more about why healthcare is so important to our lives beyond our corner of the market. Here is what I came up with, 5 interesting facts about healthcare in the U.S.
1. Hospital Employment: Hospitals are significant employers, with around 5.2 million people working in them in the U.S., making it one of the largest sectors for employment.
2. Economic Impact: Hospitals and health systems contribute significantly to the economy. In the U.S., they generate over $1 trillion in economic activity annually, making them crucial economic engines in many communities.
3. Patient Visits: On average, hospitals in the U.S. handle over 36 million admissions and nearly 140 million emergency department visits each year, highlighting their role as the backbone of healthcare delivery.
4. Healthcare Spending: Healthcare spending in hospitals represents a significant portion of national budgets. For example, in the U.S., hospitals account for approximately one-third of total healthcare spending, demonstrating their financial importance within the healthcare system.
5. Technology Adoption: Hospitals are increasingly adopting digital health technologies. As of recent years, around 90% of hospitals in the U.S. use electronic health records (EHRs), reflecting a significant shift towards digitalization to improve patient care and operational efficiency.
I could go on and on. A couple days later I tried to share this with Margaret to show her how important we all are! I don’t think it was completely lost on her, but her iPhone seemed more interesting. Maybe you can share these facts with your family on your long drive this summer.
Thanks for reading this issue of The Journal of Healthcare Contracting!