Tennessee: The Emerging Hub for Healthcare Excellence
Editor’s Note: This article was written for the Tennessee Department of Economic and Community Development, which approved and paid for this post.
Oracle’s recent announcement to establish its global headquarters in Nashville has solidified Tennessee’s standing as a premier destination for healthcare companies. This development aligns perfectly with the state’s long-standing tradition of excellence in the healthcare industry. With a robust ecosystem that includes top-tier companies and world-class research institutions, Tennessee is poised to be a global leader in healthcare innovation.
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Tennessee’s healthcare landscape boasts a rich history. For over two decades, the state has led the Southeast in medical equipment and supply exports, ranking second nationwide. In 2023 alone, Tennessee exported $4.4 billion in medical equipment and supplies. This impressive performance is underpinned by a diverse array of healthcare giants like DeRoyal, Medtronic, ThermoFisher Scientific, HCA, and Pfizer, all of which have significant operations in the state.
Nashville, in particular, stands out as a beacon of healthcare innovation. The city’s healthcare industry roots trace back to 1968 with the founding of Hospital Corporation of America (HCA). Today, Nashville is home to over 900 healthcare companies, employing more than 550,000 people globally and generating $97 billion in global revenue. This vibrant ecosystem includes 16 publicly traded healthcare companies, making healthcare Nashville’s largest employment sector.
Tennessee Governor Bill Lee’s cuts the ribbon at the opening of Thermo Fisher.
The arrival of Oracle is set to further elevate Nashville’s status. Oracle’s $1.35 billion investment and creation of 8,500 jobs in Nashville, coupled with its $28 billion acquisition of Cerner Corporation, a leader in Electronic Health Records (EHR), positions Tennessee at the forefront of healthcare technology. Oracle Health’s integration into Nashville’s healthcare family is expected to foster new innovations and collaborations, mirroring the impact HCA had on the industry.
Nashville is home to over 900 healthcare companies, employing more than 550,000 people globally and generating $97 billion in global revenue.
Recent expansions by companies such as August Bioservices, ThermoFisher Scientific, and Revance Therapeutics underscore Tennessee’s attractiveness as a hub for healthcare businesses. August Bioservices, a contract development and manufacturing organization, has significantly expanded its operations since relocating from California. ThermoFisher’s new manufacturing facility in Wilson County will create 1,400 jobs, producing essential bioprocess containers and fluid transfer assemblies. Revance Therapeutics’ headquarters in Nashville includes a state-of-the-art training center, further cementing the city’s reputation for cutting-edge healthcare education and innovation.
Memphis, another key player in Tennessee’s healthcare landscape, excels in medical device manufacturing. Home to major manufacturers like Medtronic, Smith & Nephew, and Olympus, Memphis boasts over 6,000 medical device jobs, contributing $2 billion to the regional economy. Research institutions like St. Jude Children’s Research Hospital and the University of Tennessee Health Science Center add to Memphis’ robust healthcare ecosystem, driving advancements in medical research and education.
An inside August Bioservices during a tour with Tennessee Department of Economic and Community Development.
Oracle’s decision to establish its global headquarters in Nashville is a testament to the state’s growing prominence in the healthcare sector.
Tennessee’s healthcare sector is not just about numbers; it’s about impact. The state’s healthcare companies touch lives globally. HCA alone has 35 million patient encounters annually, delivering one in 17 babies in the U.S. each year. HealthStream educates a quarter of a million healthcare professionals daily, while Change Healthcare handles one in three patient records in the U.S. These contributions underscore Tennessee’s vital role in the national and global healthcare landscapes.
It’s clear that Tennessee’s strategic investments, coupled with a rich history of healthcare excellence, make it an ideal destination for healthcare companies looking to expand or relocate. Oracle’s decision to establish its global headquarters in Nashville is a testament to the state’s growing prominence in the healthcare sector. As Tennessee continues to attract top-tier companies and foster innovation, the state is not just a participant but a leader in the global healthcare industry.
