A new study shows that growing Washington D.C. suburbs are providing construction growth and merger opportunities for health systems.
HealthLeaders-InterStudy recently reported that according to the Washington, D.C. Market Overview report, rapid growth in population and increased demand for medical services have caused health systems to jockey for market share in the growing suburbs of Virginia and Maryland.
The report revealed that Virginia's Loudoun County is where the battle over market share is most pronounced due to a population growth from April 2000 to July 2006 that was ranked the fourth highest in the nation.
During this growth period the county added neatly 100,000 residents, who brought above average wages to the area.
Currently, Inova Loudoun Hospital is the county's only hospital, and they are fighting hard to keep it that way. Inova has repeatedly appealed decisions by courts and state regulators to allow Hospital Corporation of America to construct its proposed medical center in Ashburn, which would be only a few miles away.
Inova Health System has announced plans to merge with Prince William Hospital and currently this is under review by the Federal Trade Commission.
Prince William Hospital has also been busy building and construction of a new outpatient center which will include urgent-care services, a laboratory, imaging equipment, a surgery center, rehabilitation services, physical therapy and physician office space are under way in Haymarket in western Prince William Country.
In Olney, Md., Montgomery County General Hospital announced in October 2007 that it was merging with MedStar. MedStar, a 153-bed hospital has been struggling to keep pace with Montgomery Country's four other hospitals in terms of size and services offered. Hospital officials believe the merger will help the hospital expand and recruit physicians faster and could also allow for improvements to the hospital's cardiovascular programs.
Josh Kelley, market analyst for HealthLeaders-InterStudy and author of the report said, "Watch for competition to continue among health systems looking to serve rapidly growing counties outside of the District."