HAP News Releases and Statements

New Report: PA Hospitals Support One in Nine Jobs

Analysis shows hospitals as key driver of state, local economies

December 23, 2020

A new report released today by The Hospital and Healthsystem Association of Pennsylvania (HAP) shows that the economic impact of Pennsylvania’s hospital community extends far beyond the four walls of each facility, including providing family-sustaining jobs and powering local businesses and suppliers. During fiscal year (FY) 2019, Pennsylvania’s hospitals fueled $143 billion in total economic impact and supported more than 660,000 jobs—more than one of every nine jobs in the state.

The white paper and interactive online dashboard detail the direct and ripple employment and economic impact of hospitals and health systems—including not-for-profit and investor-owned facilities—and highlight the importance of these facilities to the communities they serve.

Of the $143 billion in total economic impact, Pennsylvania’s hospital community contributes:

  • $64.4 billion in direct impact—the dollars hospitals paid out for employee salaries, wages, and benefits and for the many goods and services needed to provide health care services and support hospital and health system operations
  • $78.6 billion in ripple impact—the additional economic activity that results from the circulation of hospital dollars in local communities and across the state

The more than 660,000 jobs powered by the hospital community—which provide $37.2 billion in total wages—include:

  • More than 291,000 jobs directly associated with hospitals and health systems
  • More than 371,000 jobs through ripple effects—like employees of hospital contractors or service providers whose salaries are supported by hospital staff spending

The analysis also showed that during FY 2019, the health care sector represented 18.6 percent of the state’s workforce, a 36 percent increase from FY 2000, moving it ahead of manufacturing as the leading employment sector for the state.

The report also cautions that the hospital community—like many industries—faces serious challenges as the state and nation battle the COVID-19 pandemic. Thousands have lost their lives or will endure lasting health consequences as a result of COVID-19. The state’s unemployment rate jumped from 4.7 percent during February 2020, to 16.1 percent during April 2020 and has remained high (7.3 percent during October 2020). In addition, an analysis by Health Management Associates estimates that close to 1 million Pennsylvanians could lose employer-sponsored health insurance coverage as a result of the pandemic.

“Our hospitals and health systems—and the hundreds of thousands of incredible employees who keep them caring for everyone—have faced truly extraordinary challenges this year,” said Andy Carter, HAP’s president and CEO. “For the state’s hospital community to overcome these challenges, and remain the economic engine that we need to recover from the lasting impacts of this crisis, we need continued support from our legislative leaders in Harrisburg and Washington, D.C.”

The full report, including an interactive data visualization, can be found at HAP’s website.

Media Contact

Liam Migdail
Director, Media Relations
Phone: (717) 561-5342

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