Health Services

Key Points

Health services play a fundamental role in society and the economy. Major segments of the health services industry include physician offices, hospitals, medical diagnostic laboratories, home healthcare, medical insurance carriers, nursing care facilities, and dentist offices. Auxiliary services include pharmacies, research and development, medical records technology, and health insurance carriers.

Chicago is home to more than 30 national medical and health association headquarters, including the American Medical Association, the American Hospital Association, the American College of Surgeons and the American Health Information Management Association.

National Distinctions Chicago: A Leader in Health Services

The Chicago metro is home to 95 hospitals* and 6 accredited medical schools. More than 28,400 physicians are directly involved in patient care:

• 8,270 in hospital-based practice - 2nd highest in the nation• 17,900 medical, surgical, and other specialists - 3rd highest • 2,260 family medicine/general practitioners - 3rd highest

Annual activity at hospitals in the Chicago metro includes:

• 773,650 surgical operations – 2nd highest in the nation• More than 1 million patient admissions – 3rd highest• Approximately 112,500 births – 3rd highest

High-ranking facilities in U.S. News & World Report’s annual review include Northwestern Memorial Hospital (8th overall in the nation), the Rehabilitation Institute of Chicago (1st in Rehabilitation), and Rush University Medical Center (4th in Orthopedics). Ann & Robert H. Lurie Children’s Hospital, ranked as the 6th best chidlren’s hospital in the country, is one of 12 children’s hospitals in the nation to score in the top 10% in at least three specialties, including Gastroenterology & GI Surgery, Neonatology, and Neurology & Neurosurgery.

1stNumber of top-ranked major teaching hospitals

1st

Number of top-ranked large community hospitals

2ndNumber of physicians in hospital practice

1st

Rehabilitation Institute of Chicago ranked #1 rehab hospital in the nation

*Hospitals included in AHA data are “U.S. Community Hospitals,” defined as non-federal, short-term general, and other special hospitals

Gross Regional Product$55.9 Billion

Workforce614,608 Employees

Number of Companies26,542

The Health Services Sector

Revised 09/21/17

Company EmployeesAdvocate Health & Hospitals 22,000Presence Health 10,987Walgreens 9,484Northshore University Health System 9,464Abbott Laboratories 7,977Northwestern Memorial Hospital 7,586Health Service Care Corp (BCBS) 6,660Loyola University Health System 6,000Rush University Health System 5,759University of Chicago Medical Center 5,250Edward-Elmhurst Healthcare 4,871Northwest Community Healthcare 4,100Alexian Brothers Health Ministry 3,600Sinai Health System 3,000Ann & Robert H. Lurie Children’s Hospital 2,300

Ingalls Health System 2,000Swedish Covenant Hospital 1,550Cardinal Health 1,426

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Top 25 Hospitals in Region Based on Patient RevenueHospital Pt. Rev.

($Mil)1 University of Chicago Medical Center $1,409

2 Northwestern Memorial Hospital $1,395

3 Rush University Medical Center $1,148

4 Loyola University Medical Center $1,037

5 Advocate Christ Medical Center $983

6 Northwestern Medicine Central DuPage Hospital $828

7 John H. Stroger Jr. Hospital of Cook County $780

8 Advocate Lutheran General Hospital $742

9 Edward Hospital $694

10 Ann & Robert H. Lurie Children's Hospital of Chicago $608

11 NorthShore Evanston Hospital $599

12 University of Illinois Hospital & Health Sciences System $548

13 Community Hospital $478

14 Northwest Community Hospital $475

15 Alexian Brothers Medical Center $436

16 Advocate Illinois Masonic Medical Center $400

17 Rush-Copley Medical Center $385

18 Elmhurst Hospital $370

19 Advocate Good Samaritan Hospital $370

20 Franciscan St. Margaret Health $361

21 Palos Community Hospital $341

22 St. Alexius Medical Center $335

23 Advocate Condell Medical Center $328

24 Advocate Good Shepherd $295

25 Methodist Hospitals $291

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Source: Crain’s Chicago Business, 2016

Other Health Practicioners

6%

Retirement Communities

4%

Offices of Dentists

5%

General Hospitals 30%

Offices of Physicians 13%

Individual and Family Services

11%

Nursing Care Facilities 9%

Home Health Care Services

8%

Health Care Stores 7%

Insurance Carriers 7%

Chicago’s Health IT industry is flourishing. MATTER, a health tech incubator, opened in February 2015 and has grown to 135 members.

Chicago’s health IT startups are influencing the medical field by pioneering advanced communication tools, improving ease and efficiency of service delivery, and building state-of-the-art applications. Emerging health IT leaders include: Healthbox, a health IT accelerator; CHITREC, a non-profit that promotes the advancement and use of electronic health records (EHRs); Allscripts, a provider of health IT solutions and EHRs; Merge Healthcare, a provider of cloud-based imaging; GoHealth, a health insurance technology firm; and ZirMed, a developer of cloud-based claims management.

Health Services Education, Innovation, and ITHealth IT

Innovation

Venture Capital$795.9M invested inhealth companies 2011-2016

Research & Development494 establishments17,897 employees

“We have more health care expertise in the Chicago region than anywhere in the world. MATTER’s goal is to bring the pieces together to accelerate the formation and growth of new health care technology businesses and better enable the region’s established healthcare institutions to innovate faster and better.“ -Steven Collins, CEO, MATTER

Chicago has one of the densest concentrations of medical research centers and universities in the U.S., with 140+ centers including Argonne National Laboratory, Abbott, AbbVie, Fermilab, Hospira, and Takeda.

In addition to Chicago’s well-established research footprint, entrepreneurs are impacting the healthcare industry by specializing in pharmaceutical, biotech, medical device niches. In 2016, 11 Chicago health companies were ranked in Inc.’s 5,000 fastest-growing private companies in America. Leaders include: ContextMedia, a health information services company; Orsini Healthcare, a specialty pharmacy for complex medical conditions; and Invoyent, a provider of strategic and technology consulting services for the healthcare industry.

3 of the nation’s top 15 teaching hospitals are located in the Chicago region – more than any other metro – according to U.S. News & World Report.

Chicago has a significant healthcare talent pipeline, with area colleges enrolling nearly 60,000 students and granting more than 28,000 annual degrees in healthcare-related fields. Top program completions in 2014 were in nursing (5,600 completions), allied health services (5,100), biology (3,600), psychology (3,200), and health administration (2,800).

EducationPrograms5,700 med residents22 major teachinghospitals

Research Support for Universities$536 Million in 2015

Startups142 Health ITstartups founded since 2010

Growth Average 5-year growth rate of 700% among fastest-growing health companies in Chicago

Note: Health services data reflects NAICS codes 4461 Health and Personal Care Stores, 5241 Insurance Carriers, 6211 Offices of Physicians, 6212 Offices of Dentists, 6213 Offices of Other Health Practicioners, 6214 Outpatient Care Centers, 6215 Medical and Diagnostic Laboratories, 6216 Home Health Care Services, 6219 Other Ambulatory Health Care Services, 6221 General Medical and Surgical Hospitals, 6222 Psychiatric and Substance Abuse Hospital, 6223 Specialty (except Psychiatric and Substance Abuse) Hospitals, 6231 Nursing Care Facilities (Skilled Nursing Facilities), 6232 Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities, 6233 Continuing Care Retirement Communities and Assisted Living Facilities for the Elderly, 6239 Other

Residential Care Facilities, 6241 Individual and Family Service &, 8122 Death Care Services Source: American Hospital Association

2016, American Medical Association 2016, Blue Ridge Institute for Medical Research, Brookings Institute 2014, BuiltInChicago, Crain’s Chicago Business, Moody’s Analytics 2016, Bureau of Labor Statistics 2016, Illinois Department of Employment Security, Illinois Hospital Association 2015, LinkedIn 2015, MNI 2015, Hoovers 2015, Truven Health Analytics 2016, U.S. Census, U.S. News & World Report, VentureSource.

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