The top revenue-generating psychiatric hospitals have seen revenue increase over the last three years, reflecting a growing need and opportunity for intensive behavioral health services.
According to Definitive Healthcare Corp.’s (Nasdaq: DH) proprietary data, the 11 highest revenue-generating psychiatric hospitals have seen an 18.5% increase, on average, in annual net patient revenue (NPR).
Cumulatively, these facilities have generated $1.48 billion in NPR, according to the latest financial information available. This list is based, in part, on the latest data disclosed to the federal government on the Medicare Cost Report which requires overall financial performance metrics.
Psychiatric hospitals have faced conflicting forces over the years.
On the one hand, many hospital systems shuttered or reduced their psychiatric bed counts because of poor payer reimbursement rates and staffing challenges. On the other, demand for psychiatric services has skyrocketed in recent years, leading enterprising organizations to build new facilities on their own or through joint ventures.
For-profit operators are absent from the list. Large psychiatric hospitals are apparently the purview of local governments and nonprofit health systems. Nonprofits oversee seven of the hospitals on the list, while state or county governments oversee the rest.
The Definitive Healthcare report states there are 939 psychiatric hospitals in the U.S.
At the top of the list, Rogers Memorial Hospital, in Oconomowoc, Wisconsin, garnered about $201 million in revenue. The facility is part of the nonprofit behavioral health system Rogers Behavioral Health System Inc. Rogers’ new CEO recently told Behavioral Health Business the organization is contemplating national expansion.
Across its three most recent fiscal years, its revenue grew 103%, according to the Definitive Healthcare data. The 90-bed facility saw about 8,900 discharges and had about 1,500 employees.
| Name | Location | NPR | 3-year growth |
| Rogers Memorial Hospital | Oconomowoc, Wisconsin | $200,691,745 | 103% |
| McLean Hospital | Belmont, Massachusetts | $188,741,000 | 13% |
| Pine Rest Christian Mental Health Services | Grand Rapids, Michigan | $162,641,534 | 18% |
| Oregon State Hospital | Salem, Oregon | $152,104,096 | 0% |
| Sheppard & Enoch Pratt Hospital | Towson, Maryland | $139,152,146 | 0% |
| Milwaukee County Mental Health Complex (closed) | Milwaukee, Wisconsin | $135,284,461 | 36% |
| Eastern State Hospital | Medical Lake, Washington | $111,459,618 | 5% |
| Tarzana Treatment Centers | Tarzana, California | $107,546,114 | 44% |
| North Texas State Hospital | Wichita Falls, Texas | $106,926,184 | -25% |
| Aspire Health Partners | Orlando, Florida | $102,269,603 | 0% |
| South Oaks Hospital | Amityville, New York | $88,085,225 | 11% |
The government-run facilities — Oregon State Hospital, North Texas State Hospital – Wichita Falls Campus, Eastern State Hospital and Milwaukee County Mental Health Complex — saw stagnant revenue growth or slight shrinkage. They are, however, the largest by bed count.
Oregon State Hospital in Salem, Oregon is far and away the largest with 578 beds while No. 2 Eastern State Hospital in Medical Lake, Washington and No. 3 North Texas State Hospital – Wichita Falls Campus each have 367 and 277, respectively.
Milwaukee County Mental Health Complex recently closed, soon after disclosing its financial data. Milwaukee County Mental Health Complex is included here as well as South Oaks Hospital which appears at No. 10 on Definitive Healthcare’s “Top 10 psychiatric hospitals in the U.S. with the most net patient revenue.”
All but one government facility did not disclose the use of an electronic health record. North Texas State Hospital – Wichita Falls Campus uses myAvatar by Netsmart.
Among the remaining nonprofit-run hospitals, McLean Hospital and Pine Rest Christian Mental Health Services used Epic Systems Corp. products.
Roger Memorial Hospital reported using an Oracle-Cerner product while Sheppard & Enoch Pratt Hospital used Veridigm and Altera Digital Health; Aspire Health Partners used ContinuumCloud’s Welligent; South Oaks Hospital used Meditech services.
Companies featured in this article:
Aspire Health Partners, Definitive Healthcare, Eastern State Hospital, McLean Hospital, Milwaukee County Mental Health Complex, North Texas State Hospital, Oregon State Hospital, Pine Rest Christian Mental Health Services, Rogers Behavioral Health, Sheppard & Enoch Pratt Hospital, Sheppard Pratt Health System, South Oaks Hospital, Tarzana Treatment Centers
