The United States population aged 65 and older increased by 3.1 percent to 61.2 million between 2023 and 2024, while the population under age 18 decreased by 0.2 percent to 73.1 million. This dual demographic trend of aging baby boomers and declining birth rates is forcing children’s hospitals nationwide to fundamentally rethink their operating models, according to Valley Children’s Healthcare President and CEO Todd Suntrapak.
Fertility rates are projected to average 1.6 births per woman over the next three decades, well below the replacement level of 2.1 births per woman. Meanwhile, birth hospitalizations decreased by 10.6 percent and nonbirth hospitalizations decreased by 28.9 percent from 2009 to 2019. Nonprofit children’s hospitals saw their profitability drop to the lowest level in a decade in 2023, with median operating margins of just 2.7 percent.
Valley Children’s is responding with a multifaceted strategy that includes workforce development through partnerships with Stanford University, UCSF, Cedars-Sinai, and USC, plus a 10-year partnership launched in 2022 with California State Fresno for health professions scholarships. The organization hosts about 42 pediatric residents annually through its residency program, which began in 2017, and operates an established pharmacy residency program founded in 1999. Strategically, Valley Children’s is expanding its geographic network across Madera, Fresno, Modesto, Merced, Visalia, and Bakersfield, aiming to have every child in the Valley within 30 minutes or 30 miles of care. The organization is also pursuing alternative revenue streams through “The Hill,” a planned 443-acre community development project featuring retail, housing, and recreational amenities.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.sfexaminer.com/marketplace/planning-n-for-tomorrow-how-valley-childrens-healthcare-ceo-todd-suntrapak-is-adapting-to-demographic/article_bd6dceac-37dc-40cd-8093-0b333cbf1d48.html