Top 20 hospitals in Texas ranked by net patient revenue
With a population count of nearly 30 million people, Texas is the second most populated state in the U.S. According to Definitive Healthcare data, the state has more than 900 active hospitals.
Below, we used HospitalView to identify the top 20 hospitals in Texas with the most net patient revenue (NPR).
Texas hospitals with the highest net patient revenues
||Net Patient Revenue
||# of Discharges
||# of Staffed Beds
||University of Texas MD Anderson Cancer Center
||Houston Methodist Hospital
||Texas Childrens Hospital
||Memorial Hermann - Texas Medical Center
||Memorial Hermann Southwest Hospital
||William P Clements Jr University Hospital
||Baylor Scott & White Medical Center - Temple
||Cook Childrens Medical Center
||Baptist Medical Center
||Childrens Medical Center Dallas
||Baylor University Medical Center - Dallas
||John Sealy Hospital
||CHI St Lukes Health - Baylor St Lukes Medical Center
||Parkland Health and Hospital System
||Texas Health Fort Worth
||St Davids Medical Center
||CHRISTUS Mother Frances Hospital - Tyler
||Medical City Plano
Fig. 1 Data is from Definitive Healthcare’s HospitalView product. Data is accurate as of October 2022.
Which hospital has the highest net patient revenue?
The University of Texas MD Anderson Cancer Center in Houston has the highest net patient revenue in Texas with $3,982,982,020. Although it has a lower number of discharges and staffed beds compared to the hospitals falling in second and third place, this facility is specifically designed for cancer treatments, which can often be some of the most expensive for payors to cover. These costly treatments are the reason why their NPR is so high.
In second place is Houston Methodist Hospital. Also located in Houston, its NPR is $2,451,664,380 and it currently has 1,003 staffed beds. Unlike the MD Anderson Cancer Center, Houston Methodist Hospital treats a wide variety of ailments, many of which are less expensive than cancer treatment. This can help explain why it takes the second spot instead of the first.
Rounding out the top three is the Texas Children's Hospital also located in Houston. It’s total NPR is $2,170,905,750 and they have 861 staffed beds throughout their facility. Combined, the top 3 hospitals earned nearly $8 billion in NPR.
What is a net patient revenue?
Net patient revenue (NPR) is the aggregate money generated from patient services collected from payors, including private insurance, Medicaid and Medicare. The calculation for NPR is the total patient revenues minus patient discounts. If a healthcare organization has a negative NPR, its discounts are greater than its total revenue.
NPR does not factor in contractual adjustments, charitable donations, foundation earnings or bad debt.
Why do hospitals calculate their NPR?
A healthcare organization’s net patient revenue is a key indicator of that organization's financial strength. By knowing the state of an organization’s financial performance, it can help develop meaningful business strategies and ensure that all their operations are adequately funded.
Many hospitals state that growing their NPR is one of their biggest challenges. Fluctuating patient volumes and decreasing reimbursement rates have both resulted in a lack of financial growth for many hospitals across the country. In order to improve their revenue growth strategy, healthcare providers can use healthcare commercial intelligence like payor claims , diagnosis and procedure trends, and patient leakage metrics to reach a better understanding of their market.
Healthcare Insights are developed with healthcare commercial intelligence from the Definitive Healthcare platform. Want even more insights? Start a free trial now and get access to the latest healthcare commercial intelligence on hospitals, physicians and other healthcare providers.