30 Cities With The Best Hospitals In The US
In this article, we will take a look at the 30 cities with the best hospitals in the US. If you want to skip our discussion on the healthcare industry, you can go directly to the 5 Cities With The Best Hospitals In The US.
The healthcare industry stands amongst the fastest-developing sectors in the world, as evidenced by the sector’s significant share in the US economy. In 2023, the US spent an estimated $4.7 trillion on healthcare, translating to about 18% of the national GDP. This expenditure is nearly double that of other countries with similar economic situations. According to research, the US spends $12,555 per capita on healthcare compared to $7,358 for the Netherlands, $8,049 for Switzerland, and $6,517 for France. The US also has quite a few cities being featured on the list of 30 Cities With the Best Healthcare in the World. However, despite the high levels of spending, there still remains significant room for improvement in the quality of healthcare services in the US. A majority of US consumers may not express immediate concern, given that they are covered by insurance plans provided by their employers. However, this lack of concern is often due to a lack of information for evaluating both the quality and costs of healthcare services. The inefficiency in pricing within the healthcare system, coupled with average treatment outcomes, puts a burden on the national economy.
The 2024 outlook for healthcare by Deloitte reveals that healthcare companies are navigating a range of issues and changing trends, such as continued financial stress, the integration of new technologies, and a growing trend of mergers and acquisitions (M&A). Furthermore, the rising labor expenses are acting as a significant pressure point for healthcare companies, leading to lowered margins. These increasing costs of medical care and coverage are expected to leave consumers with higher treatment expenses in 2024 and beyond. In 2023 alone, the prices of outpatient care and hospital services recorded an increase of 5.7% and 4.2%, respectively. In response to these financial challenges, many healthcare companies such as Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), and Abbott Laboratories (NYSE:ABT) are optimizing their operations to increase efficiency and cut down costs.
Here's what Polen Capital said about Abbott Laboratories (NYSE:ABT) in its Q3 2023 investor letter:
“As stated below in the portfolio activity section, Abbott Laboratories (NYSE:ABT) is expected to see roughly $6 billion in COVID test sales evaporate this year, creating a headwind for margins and underlying earnings per share. As long-term owners of the business, these test sales were never part of our original investment case. The core business, our primary focus, has a clear path of growing high single digits in 2023 with durable growth beyond, in our view. We believe the current price of 23x NTM P/E , while reasonable, is also misleading considering earnings this year will be artificially depressed because of the drop in COVID testing sales. On normalized earnings, the price is lower. We anticipate underlying EPS growth of at least low-teens over the next three to five years.
Lastly, we trimmed Abbott Laboratories, bringing it back to a more average position size and to also fund our increase in Thermo Fisher. Abbott is entering a year in which the company is expected to see approximately $6bn in COVID-19 test sales disappear, thus, creating a headwind for margins and EPS. That said, the core business has a clear path to growing high single digits in FY23. EPS grew at a 20% CAGR from 2019-2022, far beyond our expectations when we initiated our investment. Now, we expect a more normal growth rate of low teens EPS beyond this year. Further, management’s adeptness at allocating capital continues to impress us. We expect Abbott to drive top line growth without heavily investing in R&D and SG&A this year— management effectively “front-loaded” those investments in 2021 and 2022 when COVID test sales created a bolus of cash. We believe this should allow for leverage on the operating margin going forward. Combined, Abbott and Thermo Fisher now represent 7% of the Portfolio.”
Despite the challenges, the US healthcare industry has numerous top-rated hospitals, and the best hospitals in the US by state offer high-quality treatments. The improvements across the industry are being driven by advancements in segments such as the healthcare service and technology (HST) segment. Projections show that the HST segment is likely to experience the highest growth, maintaining a CAGR of 12% between 2022 to 2027. Meanwhile, the most significant advancements are predicted in software and platforms, along with data and analytics, showing projected CAGRs of 15% and 22%, respectively. Similarly, the pharmacy segment revenue is also predicted to record a CAGR of 5%, reaching a value of $700 billion in 2027. All these factors are also likely to lead to an increase in demand for the services of the top 100 hospitals in the US. With this context in mind, let’s take a look at the cities with the best hospitals in the US.
Our Methodology
We referred to a number of sources, such as Medbelle, Healthcare Insider, and Newsweek, to shortlist the 30 cities with the best hospitals in the US. The Newsweek database of 600 high-ranking hospitals across the country was scanned to list down all the cities with the best hospitals. The ranking was determined by considering both the total number of the best hospitals in each city and their combined scores. These scores reflect the hospitals' reputation, gathered from the feedback of survey participants and healthcare professionals. The 30 cities with the best hospitals in the US are ranked in ascending order of the total scores.
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Cities With The Best Hospitals In The US
30. Charlotte, North Carolina
Number of Hospitals: 1
Combined Score: 84%
Atrium Health Carolinas Medical Center in Charlotte, NC, holds national rankings in 8 pediatric specialties and is recognized as high-performing in 4 adult specialties. It is a teaching hospital that provides general medical and surgical facilities.
29. San Antonio, Texas
Number of Hospitals: 2
Combined Score: 152.84%
Methodist Hospital and the Baptist Medical Center are the two top-rated hospitals in San Antonio. The Methodist Hospital is amongst the largest in the US based on the number of beds. It also offers the only heart transplant program in the city.
28. Fort Worth, Texas
Number of Hospitals: 2
Combined Score: 157.11%
Texas Health Harris Methodist Hospital Southwest and Baylor Scott & White All Saints Medical Center are the top two hospitals in Fort Worth.
27. Austin, Texas
Number of Hospitals: 2
Combined Score: 162.01%
St. David's Medical Center and Ascension Seton Medical Center Austin are the two top-ranking hospitals in Austin. Both hospitals have high-performance ratings across various adult specialties, procedures, and conditions.
26. Miami, Florida
Number of Hospitals: 2
Combined Score: 162.04%
Baptist Health Baptist Hospital and Miami Beach Mount Sinai Medical Center offer both general medical and surgical facilities in Miami. Mount Sinai Medical Center is also a teaching hospital.
25. Detroit, Michigan
Number of Hospitals: 2
Combined Score: 167.43%
Henry Ford Hospital and Ascension St. John Hospital are amongst the best general medical and surgical facilities in the city. They also function as teaching hospitals.
24. Jacksonville, Florida
Number of Hospitals: 2
Combined Score: 168.38%
Jacksonville is at the twenty-fourth place on our list of the cities with the best hospitals in the US. Mayo Clinic and Baptist Medical Center Beaches are general medical and surgical facilities, while Mayo Clinic operates as a teaching hospital, too.
23. Columbus, Ohio
Number of Hospitals: 2
Combined Score: 169.91%
Ohio State University - Wexner Medical Center and OhioHealth Riverside Methodist Hospital are the two best-in-state hospitals in Columbus. Both are teaching hospitals and are highly rated in multiple adult specialties and procedures.
22. Tampa, Florida
Number of Hospitals: 2
Combined Score: 172.65%
Tampa General Hospital and St. Joseph's Hospital are the two top-ranking hospitals in Tampa. Both hospitals have national rankings and are recognized as high-performing in various specialties and conditions. Tampa General Hospital is also a teaching hospital.
21. Milwaukee, Wisconsin
Number of Hospitals: 2
Combined Score: 177.47%
Both Froedtert Hospital and the Medical College of Wisconsin and Aurora St. Luke's Medical Center are teaching hospitals and hold national and regional rankings. Both institutions have received high-performance ratings in over 16 procedures.
20. Las Vegas, Nevada
Number of Hospitals: 3
Combined Score: 220.72%
Saint Rose Dominican Hospitals - San Martin Campus, Southern Hills Hospital and Medical Center, and Mountainview Hospital are the three top-ranked hospitals in Las Vegas, making it one of the cities with the best hospitals in the US.
19. Oklahoma City, Nevada
Number of Hospitals: 3
Combined Score: 238.79%
Integris Southwest Medical Center, Mercy Hospital Oklahoma City, and Integris Baptist Medical Center are all general medical and surgical facilities in Oklahoma. The hospitals have multiple high rankings in different adult procedures and specialties.
18. Nashville, Nevada
Number of Hospitals: 3
Combined Score: 242.64%
Vanderbilt University Medical Center, Ascension Saint Thomas Hospital West, and Tristar Southern Hills Medical Center all hold regional rankings and have high-performance ratings in approximately 9 procedures and conditions. Vanderbilt University Medical Center is also a teaching hospital.
17. San Diego, California
Number of Hospitals: 3
Combined Score: 249.21%
Jacobs Medical Center at UC San Diego Health, Sharp Memorial Hospital, and Kaiser Permanente San Diego Medical Center & Zion Medical Center have high ratings across multiple specialties and are recognized for excellence in at least 12 different procedures and conditions each.
16. Phoenix, Texas
Number of Hospitals: 3
Combined Score: 253.86%
Mayo Clinic – Phoenix, Banner University Medical Center, and St. Joseph's Hospital and Medical Center are the top-rated hospitals in Phoenix. Furthermore, Mayo Clinic and Banner University act as teaching hospitals as well.
15. Seattle, Washington
Number of Hospitals: 3
Combined Score: 261.03%
The University of Washington Medical Center, Virginia Mason Medical Center, and Swedish First Hill Campus are the top-ranked hospitals in Seattle. The University of Washington Medical Center is also a teaching hospital.
14. Washington, DC
Number of Hospitals: 4
Combined Score: 301.41%
MedStar Georgetown University Hospital, MedStar Washington Hospital Center, George Washington University Hospital, and Sibley Memorial Hospital have all achieved top rankings with multiple accolades for different procedures. With the exception of Sibley Memorial, each of these hospitals also operates as a teaching hospital.
13. San Francisco, California
Number of Hospitals: 4
Combined Score: 326.13%
UCSF Medical Center, CPMC Van Ness Campus, Chinese Hospital - Main Campus, and Kaiser Permanente San Francisco Medical Center are the best hospitals in San Francisco. UCSF Medical Center is prominent for its ranking in both adult and pediatric specialties.
12. Denver, Colorado
Number of Hospitals: 4
Combined Score: 327.38%
Saint Joseph Hospital, Denver Health Medical Center, Porter Adventist Hospital, and Health One-Rose Medical Center emerge as top-rated hospitals, with the first two operating as teaching hospitals. All four institutions have high-performance ratings in various specialties and procedures.
11. Baltimore, Maryland
Number of Hospitals: 4
Combined Score: 333.85%
Baltimore has 4 top-ranking hospitals, namely The Johns Hopkins Hospital, Johns Hopkins Bayview Medical Center, University of Maryland Medical Center, and MedStar Union Memorial Hospital. These hospitals have high rankings in over 10 specialties and procedures each. All except MedStar Union Memorial Hospital also operate as teaching hospitals.
10. Houston, Texas
Number of Hospitals: 4
Combined Score: 337.43%
Houston Methodist Hospital, Memorial Hermann-Texas Medical Center, Baylor St. Luke's Medical Center, and Houston Methodist Willowbrook Hospital stand out as the top-rated hospitals in Houston. Memorial Hermann-Texas Medical Center is also known for providing high-quality services in children's specialties.
9. Los Angeles, California
Number of Hospitals: 4
Combined Score: 354.94%
UCLA Health - Ronald Reagan Medical Center, Cedars-Sinai Medical Center, Keck Hospital of USC, and Kaiser Permanente Los Angeles Medical Center are the top-rated hospitals in Los Angeles. They also operate as teaching hospitals and have multiple rankings for various specialties and procedures.
8. Portland, Oregon
Number of Hospitals: 5
Combined Score: 410.10%
OHSU Hospital, Providence St. Vincent Medical Center, Providence Portland Medical Center, Legacy Emanuel Medical Center & Randall Children's Hospital, and Adventist Health Portland are the top-rated hospitals in Portland.
7. Atlanta, Georgia
Number of Hospitals: 5
Combined Score: 410.10%
Emory University Hospital, Emory Saint Joseph's Hospital, Northside Hospital Atlanta, Piedmont Atlanta, and Emory University Hospital Midtown are Atlanta’s top-ranked hospitals.
6. Indianapolis, Indiana
Number of Hospitals: 5
Combined Score: 426.50%
Indianapolis secured the sixth position on our list of the cities with the best hospitals in the US. Community Hospital East, IU Health Methodist Hospital, St. Vincent Indianapolis Hospital, Community Hospital South, and Community Hospital North are the top-ranked hospitals in the city.
Some of the key healthcare companies such as Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), and Abbott Laboratories (NYSE:ABT) are also playing a role in improving the healthcare sector in the US.
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