Many of Orange County’s hospitals are expanding throughout the region and preparing for the opening of several multi-million-dollar facilities this year.
This year’s growth comes after a successful 2024, where the county’s largest hospitals experienced a fourth straight year of increased revenue since the 2020 pandemic negatively impacted patient visits.
Net patient revenue for the 24 largest hospitals on the Business Journal’s annual list climbed 9% to $12.2 billion for the year ended Sept. 30, 2024. That compares to a 9.1% increase in 2023 and a 7.9% increase in 2022. Revenue data was based on a database from California’s Department of Health Care Access and Information.
For that same period, the hospitals reported combined profit of $924 million, up from $750 million in the prior year.
Outpatient visits went up 8% to 3.5 million, compared to a 4% decrease a year ago. Meanwhile, total employment increased 11% to 60,811.
UCI Health Opening 144-Bed Acute Care Hospital This Year
UCI Health retained its No. 1 position with a 19% jump in net patient revenue to $2.2 billion.
It’s continuing to grow by increasing its number of beds and opening new facilities.
Last March, UCI Health closed on an acquisition of four hospitals from Tenet Healthcare Corp. (NYSE: THC) for $975 million.
“We are investing in building a healthier future for people that harnesses the power of advanced medicine with the convenience of care available close to home,” UCI Health Chief Executive Chad Lefteris said in a statement.
Lefteris said the acquisition will increase UCI Health’s number of employees by 50% and annual revenue by 40%.
UCI Health is also spending $1.3 billion on building a medical complex along Jamboree Road and Campus in Irvine. The first two buildings in the complex opened last summer and saw a combined 660 patients on opening day.
The third and final phase of the project, a seven-story, 144-bed acute care hospital, is scheduled to open in the fourth quarter of this year.
Outside of Irvine, UC Irvine’s flagship medical center in Orange opened a 19,000-square-foot, two-story outpatient imaging center last August. It provides services for mammography, breast ultrasound and bone density screening.
Hoag Sees Demand for Maternity Services
Another building boom is taking place at No. 2 Hoag Memorial Hospital Presbyterian, which reported sales rising 15% to $1.7 billion. A year ago, it increased 10%.
Hoag had increased demand for its maternity services, ranging from routine deliveries to high-risk care.
It delivered a record of more than 8,000 babies in 2024, more than any other hospital in Orange County, according to Hoag CEO Robert Braithwaite.
Hoag’s obstetric (OB) emergency department, OB hospitalist team and high-risk OB anesthesia clinic are a few of the “many reasons” mothers choose Hoag to deliver their babies, Braithwaite told the Business Journal.
Hoag, which is spending $1 billion to expand its Irvine campus, is eyeing South Orange County for growth as well, starting with the opening of a $20 million facility in San Clemente this July (see story, page 1).
Five Hospitals Report Declines
Kaiser Foundation Hospital-Orange County, No. 3 on the list, saw revenue increase 11% to $1.3 billion.
Senior Vice President and Area Manager Payman Roshan attributed the increase to “membership growth, effective cost containment practices and Kaiser’s commitment to excellent patient care.”
Not all hospitals reported revenue increases.
Five of the hospitals on the list reported declines, including Children’s Hospital of Orange County, which saw revenue decrease by 10% to $1.1 billion.
CHOC is gearing up to open its nine-story, 330,00-square-foot Southwest Tower in July. The tower, which is costing CHOC $300 million to construct, will house a variety of pediatric outpatient services (see story, page 14).
West Anaheim Medical Center and La Palma Intercommunity Hospital reported the biggest increases, rising 44% to $187 million and 41% to $69.3 million respectively.
Both hospitals are owned by Prime Healthcare Services Inc., the fifth-largest for-profit health system in the U.S. It operates 44 hospitals and more than 300 outpatient locations in 14 states. Officials declined to comment on why revenue increased.
