Medical Infrastructure - Hospitals

Number of Hospitals, 1987-1997

In the 1987 to 1997 decade, the number of hospitals decreased by 8.4%.² Only psychiatric & substance abuse hospitals (hereafter "psychiatric hospitals") gained in number during this time period.³ There were 14 more in 1997 than were present in 1987. But, the number was greatest in 1992: 919 vs. 787 in 1987 and 801 in 1997.

The majority of hospitals are not-for-profit. The one exception to this has been psychiatric hospitals. In 1992, the number of for-profit hospitals of this type exceeded the number in the not-for-profit category. But the decline in the number of for-profit facilities in 1997 (103 vs. 15 in the not-for-profit sector) suggests that many could not make a profit and either merged or closed completely. Despite this, the number of for-profit psychiatric hospitals in 1997 continued to exceed the number in 1987. There were fewer not-for- profit facilities in this sector in 1997 than in 1987.

Specialty hospitals, except psychiatric followed a similar pattern. The number of for- profit specialty hospitals increased from 1987 to 1992, then decreased again in the five year period 1992-1997. But, despite this decrease, for-profits still outnumbered not-for- profits in 1997. Not-for-profits increased from 1987 to 1992 (just as they had done in the psychiatric hospital sector) before declining in number from 1992 to 1997. In this case, however, the biggest declines were seen in the not-for-profit sector (137 fewer of this, 43 fewer for-profits).

We see a reverse of this pattern in general medical and surgical hospitals. From 1987 to 1992, the number of for-profit hospitals declined (as did not-for-profit), but then increased in number from 1992 to 1997. However, there were fewer specialty hospitals of both types in 1997 than there had been in 1987. A majority of all hospitals were general medical & surgical hospitals (82% in 1987 and 1997, and 79% in 1992).

The table below shows the number of for-profit (taxable) and not-for-profit (exempt) hospitals over the decade.

Number of Hospitals by Tax Exempt Status, 1987-1997

From 1987 to 2000, the population of the United States increased 16.1%. At the same time, the number of hospitals decreased by 20.4%. The next two panels discuss the trends of hospital mergers and their impact on health care.

Sources: U.S. Census Bureau. 1992 and 1997 Economic Census. Arsen J. Darnay. Service Industries USA, Fourth Edition, 1999; Original source: U.S. Census Bureau. 1987 Census of Service Industries. U.S. Census Bureau. Statistical Abstract of the United States: 2001. U.S. Census Bureau. "Your Gateway to Census 2000." Retrieved September 4, 2002 from http://www.census.gov/main/www/cen2000.html. American Hospital Association. "Fast Facts on U.S. Hospitals from Hospital Statistics." Retrieved September 4, 2002 from http://www.hospitalconnect.com/aha/resource_center/fastfacts/fast_facts_US_hospitals.html.