Previously, I’ve mentioned that Nashville is recognized nationally and internationally as a capital of the health care industry. It is the proximity to influential and powerful corporations that makes the Health Care program at Owen so intriguing. For example, tonight in my HC Finance and Accounting class, Dr Tommy Frist, Chairman Emeritus and Founder of HCA, the largest hospital group in the country, will speak to the 15 of us in the class. My father, who has been affiliated with HCA for several years (decades?), has never heard Dr Frist speak. Nonetheless, it should be a spectacular experience.
Aside from Dr Frist, I began thinking about Nashville’s importance in the industry last night during the class taught by Dr Jacobson – the Vice Chancellor of Health Affairs at the University, one of the most influential people in the city and in the industry, and my professor. He began speaking about the importance of Nashville in the larger HC industry and I was blown away. Here are some stats on the Nashville area (from the Nashville Health Care Council):
- There are over 290 HC companies with a multi-state, national or international presence, with more than 250 professional service firms (e.g. accounting, architecture, banking, legal).
- Nashville-based health care companies account for more than $62B in annual revenue and over 430,000 jobs globally.
- There are 20 publicly traded HC companies headquartered in Nashville
- Nashville-based HC management companies own or operate 50% of the investor owned hospitals in the US accounting for 56% of revenues. With the merger of Community Health Systems, Nashville based, with Triad, this will jump to 58% of the hospitals and 65% of revenues.
- Since 2000, Nashville health care start-ups and existing companies have secured more than $4.3B in venture capital and private equity funding. Of the top 10 US private equity related deals in 2004, 4 involved Nashville companies totaling $3.8B.
- The economic impact of the industry in Nashville was $18.3B, accounting for 154,800 jobs in 2004.
- Over the past 30 years, 4 new HC industry segments were founded or fostered here:
- Hospital Management, Outpatient Surgery Centers, Disease Management and Physician Management Groups
- Nashville is home to an increasingly diversified industry with growth centers including Health Care IT and Biotechnology (In fact, I will be interning in the area for a Biotech company who is publicly traded).
And, because of the small community and large number of HC firms, the industry tends to be incestuous. Here is the “Nashville Health Care Family Tree”. It is hard (or impossible) to read, but each box represents a company, with the black boxes representing the “parents” of Healthtrust, Hospital Affiliates, Inc, and HCA. The purple cluster towards the bottom are all of the Biotech that has come out of Vanderbilt.
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