NASHVILLE – Despite the national economic slowdown, the Nashville health care industry saw growth in the form of new companies, expansions and relocations in 2009. As the newest version of the Health Care Industry Family Tree shows, Nashville health care remains one of the most resilient industries for investment and growth.
The Family Tree, originally created in 1998 as a guide for investors, serves as a large-scale visual depiction of Nashville’s vibrant health care industry that originates largely from the founding of two hospital companies, HCA and Hospital Affiliates in the late 1960s. Since then, Nashville has become home to more than 300 health care companies that account for $50 billion in annual revenue and 300,000 employees worldwide.
“In 2009, start-ups, new investments and company expansions continued, further strengthening the reputation of Nashville as the health care industry capital,” said Joey Jacobs, Council chair and Psychiatric Solutions chairman, president and CEO. “The Family Tree continues to grow, illustrating Nashville as a strong industry center for health care expertise and innovation.”
Growth in Difficult Times
While the national economy shows slow signs of recovery, Nashville health care companies continue to expand and multiply.
• Corporate Relocation – Claimtrust, a health care revenue cycle management software company, relocated its corporate headquarters to Murfreesboro.
• Expansions – Five existing health care companies expanded their offices, adding more than 650 people to the Nashville-area workforce: AmMed Direct, Cogent Healthcare, Emdeon, PromiseCare Pharmacy and Simplex Healthcare.
• New Companies – Thirteen new health care companies were added to the Family Tree: ASCIRA Partners, Asklepion Pharmaceuticals, Colmaric Analyticals, CredenceHealth, Cumberland Healthcare Credit, DisasterNet, Ingeny Health, Nodality Labs, OralDNA Labs, ProstimRx, RegionalCare Hospital Partners, Silvercare Solutions and StemSynergy Therapeutics.
• Welcome New Members – The Nashville Health Care Council welcomed 31 new corporate members, bringing the total membership to more than 177 members.
Investing in Nashville Health Care
National attention given to Nashville IPOs and state incentives made Nashville health care stand out from other markets in 2009.
• Going Public – Two Nashville health care companies went public in the first three quarters of 2009, Emdeon and Cumberland Pharmaceuticals, out of only 34 total U.S. IPOs.
• TNInvestco – The state TNInvestco program drew attention from health care investors looking to capitalize on new markets, awarding funds for early-stage investment to six firms with health care investment experience.
Economic Development Efforts
The Council participated in ongoing economic development efforts in partnership with the Nashville Area Chamber of Commerce.
• Nashville Medical Trade Center – Plans were recently announced to locate the first of its kind Medical Trade Center in Nashville, solidifying the city’s reputation as a worldwide leader in health care. The project will create 2,700 new jobs.
• Global Partnerships – The Council began new and strengthened existing international partnerships:
o In November, the Council hosted a delegation of Swedish health care executives during a visit to Nashville and showcased more than a dozen health care companies in a variety of sectors. The visit followed a trade mission by the Council to Sweden and Germany in 2008.
o Former U.S. Ambassador to Germany John Kornblum also visited Nashville in November, offering insight on business expansions into the German health care market.
o Council President Caroline Young and other Nashville health care leaders accompanied Tennessee Governor Phil Bredesen on an October trade mission to China to establish relationships with key China government and industry leaders.
o Together with the Nashville Technology Council and the Nashville Area Chamber of Commerce, the Council hosted a Virtual Trade Mission to India in April. The day-long video conference with Indian market leaders explored opportunities in health care and technology.
Council Activities
Every year, the Council hosts more than a dozen unique educational opportunities, networking and mentoring activities for members. In 2009, more than 3,100 members, industry leaders and guests attended these events.
• New Initiatives – The Council, in partnership with the Nashville Area Chamber of Commerce and the Center for Health Transformation, featured its first well-being program. National health leaders, including Newt Gingrich, former speaker of the U.S House of Representatives and founder of the Center for Health Transformation, and Dan Buettner, researcher and author of The Blue Zones, broadened the dialogue on well-being in Nashville at Health and Well-Being: Keys to Transformation in November.
• Financing the Industry – The Council hosted several investment programs, including the annual Wall Street’s View on Prospects for the Health Care Industry in January and Investing in Health Care: The Early and Growth-Stage Perspective in August.
• Policy – Members-only briefings with Congressman Jim Cooper and Congressman Marsha Blackburn and staffs offered insight into the health care debate in Washington.
• Health Information Technology – The June Health Information Technology & the Economic Stimulus event provided a forum for members to learn about emerging IT in health care from well-respected thought leaders like David Brailer, M.D., former national coordinator for Health Information Technology at the U.S. Department of Health and Human Services, and Jonathan Perlin, M.D., chief medical officer at HCA.
Cultivating Future Industry Leaders
The Council’s Leadership Health Care (LHC) program works to cultivate the talent of the next generation of health care leaders through various opportunities and programs.
• Record Membership – LHC grew to a record of more than 560 individual members.
• Delegations – More than 140 LHC members had the unique opportunity to connect with many of the nation’s key policy and financial leaders during highly successful delegations to Washington, D.C. and New York City in April and September, respectively.
“Nowhere else on earth is there a center of innovation and entrepreneurialism comparable to Nashville’s health care cluster,” said Council President Caroline Young. “Decades of steady growth have built Nashville’s reputation as the health care capital, recognized by thought leaders around the nation and worldwide.”
To order a 2009 Family Tree, please call (615) 743-3140 or visit www.healthcarecouncil.com.
The Nashville Health Care Council, founded in 1995 as an initiative of the Nashville Area Chamber of Commerce, is an association of health care industry leaders working together to further establish Nashville’s position as the nation’s health care industry capital. For more information on the Council, please visit www.healthcarecouncil.com.