The Texas economy is flourishing, and nowhere is that better reflected than in the state's dynamic healthcare industry. Medical construction projects, job opportunities and billions in revenue are evidence of the Texas healthcare boom, and this boom correlates with population trends in the state.
Texas has the second largest population in the United States at just under 28 million residents. The state also ranks first for largest annual population growth. According to the most recent estimates from the U.S. Census Bureau, this growth trend will continue. The expansion of existing hospitals and construction of new medical facilities is part of the response to this trend.
According to Census data from 2012, the number of healthcare establishments rose from 54,991 to 61,342 over a period of five years. That is an increase of 11.5 percent. In 2017, Texas spent $15.8 billion on medical construction.
"There is a lot of construction and demographic growth in general in Texas, and healthcare real estate goes along with that," said healthcare construction expert, Mike Hargrave.
The new construction and burgeoning revenue mean one thing — more jobs. The healthcare industry will need knowledgeable and qualified employees, such as those with a Master of Business Administration with a Concentration in Health Care from the University of Texas at Arlington.
Healthcare Workers in Texas
Eight out of the 25 largest employers in Texas are either hospitals or research facilities. In San Antonio, one out of every six residents is employed in the industry, which is poised to hire more.
One look at job listings show the state's growing need for healthcare staff. Almost 21,000 openings for registered nurses were advertised across the state, with medical managers, medical secretaries, medical records and health information technicians also being in high demand. San Antonio-based companies in particular are looking to hire more human resources specialists and human resources managers, which shows these companies are preparing for higher levels of hiring.
Healthcare Revenue in Texas
Hiring trends and construction projects point to a profitable industry, but exactly how much revenue is the Texas healthcare sector bringing in?
- 2012 Census data shows Texas state revenue from healthcare was over $145 billion, an increase of 27.4 percent from 2007.
- In 2012, the total number of medical employees in Texas was 1,345,664, which represented an increase of 15.3 percent from 2007.
In the Dallas-Ft. Worth healthcare industry alone, the market is valued at $52 billion per year and represents 15 percent of all regional economic activity, making healthcare one of the largest economic sectors in the region. Hospitals alone in DFW reported a net income of $2.597 billion in 2015, compared to net income of $1.998 billion in 2013. For five out of the last six years, average profit margins for Dallas-Ft. Worth hospitals have been above 12 percent.
San Antonio healthcare constitutes a significant part of the state's overall economy. The healthcare and bioscience industry had a $37 billion impact on San Antonio's economy in 2015. The bioscience sector is a large element of San Antonio's healthcare industry and will be part of the city's landscape as the company BioMed SA is coordinating a strong push with the city to grow the local industry. German biotech company Cytocentrics noticed the growth and made San Antonio its headquarters.
Healthcare is one Houston's major financial drivers with an estimated regional annual economic impact of $20 billion. Houston's Texas Medical Center is the largest of its kind in the world. The 675-acre TMC houses 42 nonprofit and government institutions, including 13 teaching hospitals, two medical schools, four colleges of nursing, a dental college, a college of pharmacy and a college of optometry. The Houston area is home to more than 85 hospitals, which employ more than 100,000 healthcare workers, who make up nearly 7 percent of Houston's workforce.
The healthcare industry in Texas is big business indeed. It will need skilled leaders with healthcare administration expertise to move the field into the future.
Learn more about the UTA online MBA program with a Concentration in Health Care.
Sources:
United States Census Bureau: Texas Has Nation's Largest Annual State Population Growth
United States Census Bureau: Industry Snapshot - Health Care and Social Assistance (NAIS 62)
Dallas News: Texas' $15.8 Billion Medical Construction Pipeline Is Second in the Nation, Report Says
Investopedia: Texas' Economy: The 9 Industries Driving GDP Growth
City of San Antonio: San Antonio Biosciences and Healthcare Industry
San Antonio Express News: State Has Become "Health Care Texas"
Allan Baumgarten's Health Market Reviews and Consulting
Texas Public Radio: SA's Healthcare and Bioscience Industry Tops $37 Billion
The Tenant Advisor: The Prognosis for Houston's Healthcare Sector Is Still Favorable
City of Houston: About HoustonHave a question or concern about this article? Please contact us.
