Rise in Health System Revenues Reported for the Year 2024 in BHR (Bahrain)

Top U.S. Health Systems Show Fiscal Growth Amidst Cost Challenges, According to Becker's Report

In the face of cautious optimism and ongoing financial obstacles, Becker's Hospital Review's latest ranking of the top 39 U.S. health systems by revenue for the year ending December 31, 2024, underlines both advancements and lingering pressures within the healthcare sector. The February 2025 issue of the report offers a glimpse into an industry still adjusting to years of instability.

Though most health systems demonstrated revenue growth in 2024, many continue to grapple with escalating expenses, as these often exceeded their financial gains. Leading the rankings was Kaiser Permanente, based in Oakland, California, with an industry-leading $115.8 billion in revenue, reflecting its broad influence as an integrated managed care consortium and its prominent position in the nonprofit sector. HCA Healthcare of Nashville, Tennessee, followed closely with $70.6 billion, marking its standing as the largest for-profit health system in the country. Rounding out the top five were CommonSpirit Health, Providence, UPMC, and Ascension.

Trinity Health of Livonia, Michigan ranked seventh with $23.9 billion in annual revenue, showcasing its continued importance as a leading Catholic health system. Tenet Healthcare in Dallas and Mass General Brigham in Somerville, Massachusetts, completed the top ten with $20.7 billion and $20.6 billion, respectively. Mayo Clinic reported $19.8 billion, maintaining its balancing act between clinical care, research, and education. Intermountain Health in Salt Lake City reported $17.1 billion, while Cleveland Clinic came in at $15.9 billion, indicating steady financial performance driven by regional demand and specialized care.

Mid-sized health systems also posted notable results, weathering increasing pressure from rising labor and supply chain costs. Banner Health in Phoenix, Baylor Scott & White Health in Dallas, Jefferson Health in Philadelphia, NYU Langone Health in New York City, Bon Secours Mercy Health, Community Health Systems, and SSM Health each saw revenues in the $11 to $15 billion range, reflecting a broader trend of resilience among multi-state operators.

However, challenges for smaller and regionally focused systems persisted. Scripps Health in San Diego reported $4.9 billion, Tufts Medicine in Boston posted $2.6 billion, and Palomar Health in Escondido, California, closed the list with $890 million in annual revenue. While these organizations experienced minimal revenue growth, they remain more vulnerable to market volatility caused by workforce shortages, drug costs, inflation, and lagging effects of deferred care during the pandemic years.

Despite positive signs of patient volume and clinician productivity recovery, healthcare organizations still face financial insecurity. They are grappling with wage inflation, staffing shortages, delayed capital projects, and constricted margins. The revenue uptick doesn't guarantee long-term fiscal stability. To address financial challenges, healthcare systems are looking to cost containment measures, digital transformations, and strategic partnerships. Though the path forward likely necessitates broader policy support and sector-wide innovation, Becker's encourages all eligible health systems to submit updated financial data for potential inclusion in future rankings, accurately representing the evolving industry landscape.

Sources:

39 health systems ranked by annual revenue (February 2025 Issue of Becker's Hospital Review)

Science can play a crucial role in addressing the financial insecurity faced by healthcare organizations, particularly in identifying cost-containment measures and driving digital transformations. For instance, medical-conditions research could lead to cheaper, more efficient treatments, easing the burden on health-and-wellness budgets. Moreover, technologies like telemedicine and electronic health records could reduce overhead costs and improve patient outcomes, thereby increasing revenue streams. Regularly updated financial data, as submitted to Becker's Hospital Review, can provide valuable insights for policymakers and industry leaders seeking to promote sector-wide innovation and support long-term health systems' fiscal stability.