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Report: Pennsylvania Hospitals Strengthen State’s Economy
Hospitals have $89.8 billion impact,account for nearly 600,000 jobs in the state
Harrisburg, Pennsylvania - Thursday, April 29, 2010
Pennsylvania’s hospitals are the mainstay for Pennsylvania’s jobs and economy in these difficult financial times. Those are the findings of a new report released today by The Hospital & Healthsystem Association of Pennsylvania (HAP).
Pennsylvania Hospitals Strengthen Pennsylvania’s Economy
shows that Pennsylvania hospitals provided more than 596,000 hospital and hospital service-related jobs to the commonwealth’s workforce and $89.8 billion to the state’s economy in 2008—representing a nearly $6 billion increase over 2007. “At a time when statewide unemployment is hovering near the highest level in 25 years, and all signs point to a continued period of joblessness, hospitals continue to be the biggest employers in their communities,” according to Carolyn F. Scanlan, President and CEO of The Hospital & Healthsystem Association of Pennsylvania (HAP). “Investments in Pennsylvania’s hospitals mean investments in our patients, our workforce, and our economy,” Scanlan said. “As lawmakers craft state and federal budgets, they need to ensure adequate payments for hospitals to remain fiscally healthy and to maintain their status as national leaders in health care quality.” Pennsylvania’s hospitals annually care for 1.7 million inpatients and 35.9 million outpatients, and they evaluate 5.8 million injured and ill people in their emergency departments. In 55 of Pennsylvania’s 67 counties, hospitals are among the top five employers. Scanlan cautioned that if state and federal budget proposals push for reductions in hospital payments, they will be jeopardizing the very jobs that are keeping many local economies together. Recent Pennsylvania Department of Labor & Industry statistics show that while non-farm employment in Pennsylvania decreased by 2.59 percent between December 2008 and December 2009, direct hospital employment remained fairly steady, with only a slight decline of 0.15 percent during the same period. In the report, state lawmakers are urged to make a number of commitments to, and investments in, Pennsylvania’s hospitals and health systems, including:
- Modernizing Medicaid hospital payments.
- Eliminating proposed Medicaid reductions in the state’s 2010–2011 budget.
- Enacting responsible insurance practices to ensure fair payments, reduce administrative burdens, and promote insurance company competition.
The report also contains a number of recommendations for federal lawmakers, including: extending the increase in the Federal Medical Assistance Percentage beyond December 2010; reforming the inequitable and flawed Medicare wage index system; and maintaining the federal tax-exempt status of nonprofit hospitals. HAP’s report cites the findings of Fitch Ratings that “the viability of nonprofit hospitals has become a community keystone,” despite “the evolving elements of health care reform, lingering recessionary effects, continued instability in the financial sector, and government cost-containment efforts.” “At a time marked by so much uncertainty, lawmakers need to ensure that hospitals remain viable employers in their communities, where they can provide access to quality care, jobs and job-growth opportunities, support other businesses, and stimulate overall local economic activity,” Scanlan said. “Most importantly, while hospitals continue to weather the impact of the nation’s recession, their doors remain open 24 hours a day, seven days a week to provide healing, health, and hope to every patient.”
Pennsylvania Hospitals Strengthen Pennsylvania’s Economy is available online. The report updates HAP studies released in 2004, 2006, 2007, and 2009, and includes data from the U.S. Department of Commerce, the Pennsylvania Department of Labor & Industry, and HAP member hospitals and health systems.
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