Top 10 hospitals with the greatest financial strength 

With healthcare spending generating nearly 20% of the Gross Domestic Product in the U.S., it’s crucial to understand how hospital finances work. Financial strength is a major indicator of hospitals’ overall financial health.    

Financial strength is a business’s ability to invest, pay dividends and repay debts with its profits. There are many different financial health metrics, such as profits, total assets, equity ratio and operating costs. Financial strength metrics indicate companies’ current and future financial state.  

Why is financial strength important to healthcare? 

Financial strength is a critical way to measure the finances of hospitals. Financial strength can also reflect healthcare organizations’ financial priorities by showing growth and profit.   

Definitive Healthcare leverages hospital financial data to interpret healthcare organizations’ financial health. We determine the financial strength of hospitals as a measure of their net patient revenue (NPR) growth, net operating margin, day sales outstanding (DSO) and current ratio data. 

See below for the hospitals with the greatest financial strength broken into four separate metrics. The lists provided here focus on hospitals with over 50 beds and those that provided these metrics to be featured.  

Top 10 hospitals with the highest net patient revenue growth percentile

Rank 

Hospital 

Type 

State 

NPR Growth 

NPR Growth Percentile  

Hendrick Medical Center 

Hospital 

TX 

5.57 

99 

United Memorial Medical Center Main  

Hospital 

TX 

5.00 

99 

PSN Affiliates  

Health System 

TX 

4.23 

99 

Inspira Medical Center Elmer  

Hospital 

NJ 

2.87 

99 

University of Michigan Health-West 

Hospital 

MI 

2.03 

99 

Emory University Hospital 

Hospital 

GA 

2.00 

99 

CHRISTUS Mother Frances Hospital - Sulphur Springs  

Hospital 

TX 

1.75 

99 

St Agnes Hospital 

Hospital 

WI 

1.63 

99 

Trinity Health  

Health System 

ND 

1.39 

99 

10 

UC Health West Chester Hospital 

Hospital 

OH 

1.26 

99 

Fig. 1Data is from Definitive Healthcare’s Hospitals database. Data accessed February 2022.   

What is net patient revenue (NPR) growth? 

Net patient revenue growth is the increase in net patient revenue. NPR is the hospital revenue, or total funds, collected from patient services. When NPR is negative, a healthcare organization’s discounts are more than its revenue. High NPR growth is best, as it indicates a more significant increase in money from patient services, year after year.   

What is the average net patient revenue (NPR) growth? 

The average net patient revenue growth is 2.77. Each hospital is in the 99th percentile for net patient revenue growth, indicating that they all performed 99% better than other hospitals in terms of NPR growth. As the table shows, the top three hospitals by NPR growth are in Texas. This makes sense given that Texas has the second-largest economy in the U.S. 

Top 10 hospitals with the highest net operating margin percentile  

Rank 

Hospital 

Type 

State 

Net Operating Margin 

Net Operating Margin Percentile 

Highland Hospital 

Hospital 

CA 

15.43 

99 

St Mary Medical Center 

Hospital 

PA 

14.09 

99 

Holy Family Memorial Medical Center 

Hospital 

WI 

1.06 

99 

Methodist Hospital  

Hospital 

IL 

0.76 

99 

PSN Affiliates  

Health System 

TX 

0.73 

99 

UnityPoint Health Peoria 

Health System 

IL 

0.70 

99 

Emory University Hospital 

Hospital 

GA 

0.69 

99 

United Memorial Medical Center Main  

Hospital 

TX 

0.67 

99 

United Memorial Medical Center  

Health System 

TX 

0.67 

99 

10 

St Agnes Hospital 

Hospital 

WI 

0.66 

99 

Fig. 2 Data is from Definitive Healthcare’s Hospitals database. Data accessed February 2022.   

What is net operating margin? 

Net operating margin is the revenue after paying non-operating and operating business expenses and before paying tax or interest. Typically, a high operating margin is best since it indicates profitability from sales and operational efficiency.  

What is the average net operating margin? 

The average net operating margin is 3.55. Each hospital making this list is in the 99th percentile for net operating margin, indicating that they all performed 99% better than other hospitals in terms of net operating margin.  

Top 10 hospitals with the highest day sales outstanding percentile 

Rank 

Hospital  

Type 

State 

Day Sales Outstanding  

Day Sales Outstanding Percentile 

Highland Hospital 

Hospital 

CA 

-1314.26 

99 

Atlantic Health System 

Health System 

NJ 

-955.09 

99 

St Mary Medical Center 

Hospital 

PA 

-460.79 

99 

South Central Regional Medical Center 

Hospital 

MS 

-418.88 

99 

Larkin Community Hospital - South Miami Campus 

Hospital 

FL 

-318.95 

99 

Beckley ARH Hospital 

Hospital 

WV 

-162.12 

99 

AdventHealth Sebring 

Hospital 

FL 

-141.84 

99 

Larkin Community Hospital Health System 

Health System 

FL 

-136.75 

99 

Hospital San Carlos Borromeo 

Hospital 

PR 

-132.39 

99 

10 

University Hospital 

Hospital 

MS 

-123.27 

99 

Fig. 3Data is from Definitive Healthcare’s Hospitals database. Data accessed February 2022.   

What is day sales outstanding (DSO)? 

Day sales outstanding is the average number of days a company receives payment after a sale. Generally, a low DSO is best since it reflects that a company collects its payments efficiently, making more funds available.   

What is the average day sales outstanding? 

The average day sales outstanding is -416.43. Each hospital making this list is in the 99th percentile for day sales outstanding, indicating that they all performed 99% better than other hospitals in terms of DSO.  

Top 10 hospitals with the highest current ratio percentile  

Rank 

Hospital 

Type 

State 

Current Ratio 

Current Ratio Percentile 

Children’s Healthcare of Atlanta 

Health System 

GA 

305.24 

99 

MultiCare Tacoma General Hospital 

Hospital 

WA 

233.80 

99 

MultiCare Allenmore Hospital 

Hospital 

WA 

233.80 

99 

University Health Truman Medical Center 

Hospital 

MO 

174.94 

99 

MultiCare Good Samaritan Hospital 

Hospital 

WA 

161.80 

99 

Atrium Health University City  

Hospital 

NC 

124.41 

99 

Atrium Health Mercy 

Hospital 

NC 

67.43 

99 

Atrium Health Pineville  

Hospital 

NC 

67.43 

99 

Texas Center for Infectious Disease  

Hospital 

TX 

58.94 

99 

10 

Houston Methodist Baytown Hospital 

Hospital 

TX 

49.23 

99 

Fig. 4Data is from Definitive Healthcare’s Hospitals database. Data accessed February 2022.   

What is current ratio? 

Current ratio is a company’s ability to pay short-term obligations with existing assets. Current ratios are relative to industry standards, with a current ratio in line with or slightly above the standard being best.  

What is the average current ratio? 

The average current ratio is 147.70. Each hospital making this list is in the 99th percentile for current ratio, indicating that they performed 99% better than other hospitals in terms of current ratio.  

Overall, hospital financial strength intelligence can help healthcare organizations understand their and their competitors’ financial health. It can also help healthcare organizations monitor their finances, create hospital financial reports and optimize processes. Companies can utilize hospital financial health intelligence to target which hospitals have the propensity for services and products.   

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