Hospitals Support 1 in 10 Pa. Jobs, Drive Economy

Report finds hospitals create family-supporting jobs throughout the commonwealth, serve as economic anchors for Pa. communities

Harrisburg, PA (October 11, 2022) – Hospitals support one in 10 Pennsylvania jobs and contribute a fifth of the state’s entire gross domestic product, an analysis released today by The Hospital and Healthsystem Association of Pennsylvania (HAP) found.

HAP’s analysis of fiscal year (FY) 2021 data reveals that Pennsylvania hospitals—both directly and through the ripple effects of their economic activity—benefitted their communities and the commonwealth by:

• Contributing $168 billion to the state and local economies
• Supporting 590,000 jobs throughout the entire commonwealth
• Generating $38 billion in wages, salaries, and benefits

“Hospitals are critical to the health and future of Pennsylvania communities, both because of the essential care they provide and their role as job creators and economic engines,” HAP President and CEO Andy Carter said. “Hospitals support family-sustaining jobs throughout all parts of the commonwealth and are often among—if not the—top employers and economic flagships in their communities.”

Some of the key findings of the analysis include:

• Pennsylvania hospital jobs pay, on average, nearly 6 percent higher than the statewide average wage for all sectors.
• Hospitals rank fifth among all Pennsylvania industries for employment and fourth for total annual wages.
• 59 of Pennsylvania’s 67 counties have at least one hospital among their top 10 employers and in 18 of them, a hospital is the largest employer.
• Hospitals are among the top 10 industries directly contributing to Pennsylvania’s economy, ranked ninth between construction and management of companies and enterprises.
• Hospitals and universities with hospital-affiliated medical schools secured nearly $1.8 billion in highly competitive federal research funding to advance health care innovation.
• Pennsylvania general acute care hospitals reported $866 million in foregone revenue due to uncompensated care.

The analysis also highlights the strain hospitals are experiencing due to rising expenses, the continued COVID-19 pandemic, a historic workforce shortage, and a national behavioral health crisis and calls attention to the need for investments and policies to support hospitals long-term sustainability.

Learn more about Pennsylvania hospitals’ economic impact online.