Why Hospitals are Vital to Strong Communities

November 04, 2025

Hospitals care for and improve the health of their communities but their impact throughout Pennsylvania is felt far beyond health care.

Released last week, HAP’s fiscal year (FY) 2024 analysis of Pennsylvania hospitals’ community impact illustrates how hospitals support healthy, vibrant communities. As top employers and community anchors, hospitals create ripples through statewide and local economies that support businesses and create jobs across all industries.

Here are five key points to know:

• Big economic footprint:  Pennsylvania’s hospitals—both directly and through ripple effects—support a $195.4 billion economic impact, 785,715 jobs, and $62.8 billion in wages, salaries and benefits.
• Strong community investment:  On top of their economic footprint, hospitals invested around $10.8 billion in community-benefit activities, like charity care, community health programs, education of health professionals, and absorbing costs for delivering care to patients covered by Medicare and Medicaid.
• Hospitals anchor many local economies:  In 56 out of Pennsylvania’s 67 counties, a hospital is among the top 10 employers; in 20 counties, a hospital is the largest employer.
• Quality jobs:  Jobs in Pennsylvania hospitals pay on average about 7.6 percent higher than the average wage across all sectors in the state. Hospitals aren’t just care providers—they’re major employment hubs.
• Financial pressure on hospitals threatens these benefits:  Despite these large economic and community contributions, many hospitals are under increasing financial strain. A key driver is chronic underpayment by Medicaid, which covers nearly a quarter of Pennsylvanians. Currently Medicaid reimburses only 71 cents per dollar of care and that’s projected to drop to 64 cents when federal cuts are phased in.

“We can’t have healthy, vibrant communities in Pennsylvania without strong, financially stable hospitals,” HAP President and CEO Nicole Stallings said. “HAP calls on our leaders in both Harrisburg and Washington to support policies that ensure hospitals can continue to provide high-quality care that Pennsylvanians depend on, and support communities where both people and businesses can thrive.”

Learn more about Pennsylvania hospitals’ community impact online.