NAICS 622110 Quarterly Industry Report
General Medical and Surgical Hospitals
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 622110Sector: Health Care and Social Assistance (62)Updated: Q1 2026
About This Report
This industry profile for General Medical and Surgical Hospitals (NAICS 622110) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[7], Centers for Medicare and Medicaid Services[9], and SBA size standards database[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, hospital industry analysts, and healthcare investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the general medical and surgical hospitals industry.
NAICS Sector
62
Health Care and Social Assistance
Industry Definition & Overview
General Medical and Surgical Hospitals (NAICS 622110) encompasses establishments known and licensed as general medical and surgical hospitals primarily engaged in providing diagnostic and medical treatment to inpatients with a wide variety of medical conditions per the U.S. Census Bureau[5]. Hospitals provide emergency care, surgical services, obstetric care, diagnostic laboratory and imaging services, and rehabilitation programs across acute inpatient and outpatient settings.
Roughly 2,542 facilities employ 5.58 million workers with annual payroll exceeding $401 billion per Census Bureau[6] and Bureau of Labor Statistics[7] data. HCA Healthcare operates as the largest for-profit hospital system with 182 hospitals across 20 states. CommonSpirit Health, Ascension, and Trinity Health represent the largest nonprofit systems. Hospital employment of physicians increased from 30 percent in 2012 to 47 percent in 2024, with only 42 percent of physicians remaining in independent private practice.
Per the SBA Table of Size Standards[8], the size standard is $47 million in average annual receipts. Medicare pays acute care hospitals under the Inpatient Prospective Payment System (IPPS) using Diagnosis Related Groups (DRGs), with FY 2025 inpatient base rates increasing 3.5 percent per CMS[9]. Value-Based Purchasing, Hospital Readmissions Reduction, and Hospital-Acquired Condition Reduction programs adjust payments based on quality performance. Over 700 Medicare Accountable Care Organizations covering 800,000 providers participate in value-based payment models. Hospital price transparency requirements finalized in November 2025 mandate publication of actual negotiated rates with insurance plans, effective 2026.
What's Included in This Industry
- Emergency department triage and acute care services
- Inpatient medical and surgical treatment programs
- Operating room and perioperative surgical services
- Obstetric labor, delivery, and postpartum care
- Intensive care and critical care unit operations
- Hospital-based laboratory and diagnostic imaging
- Inpatient pharmacy and medication management
- Physical, occupational, and speech therapy services
- Discharge planning and care transition coordination
- Hospital quality reporting and value-based purchasing compliance
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Health Care and Social Assistance | 62 |
| Subsector | Hospitals | 622 |
| Industry Group | General Medical and Surgical Hospitals | 6221 |
| NAICS Industry | General Medical and Surgical Hospitals | 62211 |
| National Industry | General Medical and Surgical Hospitals | 622110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 622210 | Psychiatric and Substance Abuse Hospitals | Psychiatric and Substance Abuse Hospitals provide specialized inpatient behavioral health care that general hospitals may also offer through dedicated psychiatric units, with patient transfers between general and psychiatric facilities occurring when behavioral health needs exceed general hospital capabilities |
| 622310 | Specialty (except Psychiatric and Substance Abuse) Hospitals | Specialty Hospitals provide focused inpatient care for rehabilitation, long-term acute conditions, and disease-specific treatment that general hospitals refer patients to when specialized post-acute or chronic care exceeds general hospital capacity |
| 623110 | Nursing Care Facilities (Skilled Nursing Facilities) | Nursing Care Facilities receive patients discharged from hospitals for post-acute skilled nursing and rehabilitation, with hospital readmission penalties creating financial incentives for effective discharge planning to appropriate skilled nursing settings |
| 621493 | Freestanding Ambulatory Surgical and Emergency Centers | Freestanding Ambulatory Surgical Centers compete with hospital outpatient departments for surgical case volume, with CMS procedure migration from hospital-only to ASC-eligible settings shifting lower-acuity cases to less costly ambulatory environments |
| 621111 | Offices of Physicians (except Mental Health Specialists) | Offices of Physicians (General) serve as both referral sources and competitors for outpatient medical services, with hospital employment of physicians reaching 47 percent and blurring the boundary between independent practice and hospital-based care delivery |
| 621610 | Home Health Care Services | Home Health Care Services deliver post-discharge care ordered by hospital physicians, with effective hospital-to-home transitions reducing readmission rates and supporting patient recovery outside inpatient settings |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 9.5% | 575 |
| 2 | Texas | 8.0% | 483 |
| 3 | Florida | 5.3% | 322 |
| 4 | Pennsylvania | 4.7% | 281 |
| 5 | New York | 3.9% | 234 |
| 6 | Illinois | 3.5% | 214 |
| 7 | Ohio | 3.2% | 192 |
| 8 | North Carolina | 3.2% | 191 |
| 9 | Georgia | 2.6% | 159 |
| 10 | Michigan | 2.6% | 158 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
200
Total SBA Loans
$62.1M
Total Loan Volume
$311K
Average Loan Size
10 yrs
Average Loan Term
10.42%
Average Interest Rate
2,792
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[8], General Medical and Surgical Hospitals (NAICS 622110) has a size standard of $47 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support facility acquisition, medical equipment investment, and capital improvement projects for qualifying hospital operators. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 72 | $19.4M | $270K |
| 2 | First-Citizens Bank & Trust Company | 8 | $12.0M | $1.5M |
| 3 | First National Bank of Pennsylvania | 8 | $9.7M | $1.2M |
| 4 | Texas Capital Bank | 8 | $8.0M | $1.0M |
| 5 | Manufacturers and Traders Trust Company | 8 | $2.0M | $250K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for general hospitals?
NAICS 622110 covers general medical and surgical hospitals providing diagnostic, medical, and surgical treatment to inpatients with a wide variety of conditions per the U.S. Census Bureau[5].
How many people do U.S. hospitals employ?
What is the SBA size standard for hospitals?
The SBA size standard[8] is $47 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How does the DRG payment system work?
Medicare pays hospitals under the Inpatient Prospective Payment System using Diagnosis Related Groups per CMS[9] guidelines, with fixed payments based on patient diagnosis, procedures performed, complications, and geographic wage index adjustments.
What is hospital Value-Based Purchasing?
Medicare's Hospital VBP program adjusts payments based on quality metrics including mortality rates, safety measures, readmission rates, and patient experience scores per CMS[9] quality reporting requirements, with high performers receiving bonuses and low performers facing reductions.
Who is the largest hospital system?
HCA Healthcare operates as the largest for-profit system with 182 hospitals across 20 states per industry tracking data, with CommonSpirit Health, Ascension, and Trinity Health representing the largest nonprofit systems.
How fast is physician employment by hospitals growing?
Hospital employment of physicians increased from 30 percent in 2012 to 47 percent in 2024 per Bureau of Labor Statistics[7] workforce data, with only 42 percent of physicians remaining in independent private practice.
What are hospital price transparency requirements?
CMS[9] finalized requirements in November 2025 mandating publication of actual negotiated rates with insurance plans, effective 2026, enabling patients to compare costs across hospitals for common procedures and services.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA Table of Size Standards sba.gov
- [9]CMS cms.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
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