AHA: Hospitals' economic contribution often overlooked
January 25, 2013
U.S. hospitals support 15.4 million direct and indirect jobs and annually contribute more than $2.3 trillion to the economy, according to a new AHA issue brief on the economic contributions of hospitals at the state and national level.
In addition to being the second largest source of private sector jobs, hospitals spend more than $702 billion on goods and services from other businesses, which create additional economic value for the community. “With these ‘ripple effects’ included, each hospital job supports about two more jobs and every dollar spent by a hospital supports roughly $2.30 of additional business activity,” the brief notes.
“Hospitals provide vital health care services to their communities, but the importance of hospitals to their communities extends far beyond health care,” said AHA President and CEO Rich Umbdenstock. “Congress should not overlook the economic contribution of hospitals as it considers further deficit reduction proposals.”
Hospitals can calculate their specific impact on the economy in their state using a new AHA members- only tool, created with consultant Tripp Umbach. The tool calculates the impact of a hospital’sday-to-day operations, construction projects, medical education and research, and generates reports that can be combined to give a complete picture of the hospital’s economic value. To access the issue brief and calculator, go to www.aha.org/impactcalculator.