12 | THE VILLAGES HEALTH SYSTEM
WHAT IT DOES:
The Villages Health System operates a hospital located in a retirement community in Florida. HOW IT GREW:
The Villages’ growth has come in spite of the unique challenge presented by the hospital’s location within a retirement community—80% of the hospital’s patients are covered by Medicare. “Most hospitals make their money on commercial insurance products,” says Villages CEO Tim Hawkins. “Less than 10% of our patients are commercial, so we have had to learn how to make a profit on Medicare patients.”
But while the hospital has to make do without commercial-insurance money, it also benefits from the area’s growing population, which has been increasing by about 5% every year.
Much of the hospital’s growth can be attributed to expanding along with the population, but Hawkins says they have made sure all of the residents choose his hospital for care.
“We’ve got a first-class medical staff and our accommodations are five-star,” Hawkins says. “You won’t find a hotel in the country that has better facilities.”