Hospital Economic Impact on a State and Local Level
Below outlines some of the more significant information included in each of our local state’s hospital association’s economic reports.
New Jersey
On December 10, 2014, the New Jersey Hospital Association released its “2014 New Jersey Hospital Economic Impact Report” (“Report”). The Report is based on data collected from 2013 year-end cost reports from 72 acute care hospitals filed with the state Department of Health and Senior Services. The 2014 Report details the following contributions hospitals have made to the local and state economies:
- Total expenditures: $20.9 billion;
- 117,000 full-time equivalent jobs and total employment of 144,000 full- and part-time positions;
- Total employee payroll: $8.3 billion; and
- Estimated state income taxes paid by employees: $457 million.
Connecticut
The Connecticut Hospital Association issued its report, “Connecticut Hospitals: Improving Community Health, Strengthening Connecticut’s Economy”, in February 2015 which outlines the 2013 contributions made by the state’s 29 acute care hospitals to the economy as follows:
- Total expenditures: $21.9 billion;
- Employing 55,000 full-time equivalent healthcare professionals;
- Supporting 55,000 full-time equivalent jobs with economic activity ;
- Total hospital employee payroll: $5.5 billion;
- Total “ripple effect” payroll: $6 billion; and
- Estimated purchasing on healthcare goods and services: $4.2 billion.
Pennsylvania
The Hospital & Healthsystem Association of Pennsylvania prepared a report entitled “The Economic Impact of Pennsylvania Hospitals” in May 2014, which outlines hospitals’ contributions to the state’s economy as follows:
- Total expenditures: $104 billion;
- Employing 272,000 healthcare professionals;
- Supporting 320,000 jobs with economic activity;
- Total hospital employee payroll: $14.6 billion; and
- Total “ripple effect” payroll: $12.9 billion.
Rhode Island
The Hospital Association of Rhode Island to date has not released its report of 2013 economic impact. Its last report was issued on February 11, 2014 and outlines contributions during 2012 that hospitals provided to the state’s economy as follows:
- Total expenditures: $6,746,355,000;
- Employing 20,800 healthcare professionals;
- Supporting 22,300 jobs with economic activity;
- Total hospital employee payroll: $1.9 billion; and
- Estimated economic impact of spending by hospital employees: $3.7 billion.
New York
The most recently available economic impact report from the Hospital Association of New York State included 2010 data and, accordingly, the information is not included herein.
Conclusion
The information outlined above and other information included in the reports clearly exhibit that hospitals provide a significant economic value to their state and local economies. The significance of these economic contributions is not only in the direct employment and spending by hospitals, but in the ripple effect that these actions create in their communities.
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The information contained herein is not necessarily all inclusive, does not constitute legal or any other advice, and should not be relied upon without first consulting with appropriate qualified professionals for your individual facts and circumstances.
