News Release: New Report Shows PA Hospitals Support One in 10 Jobs
Analysis shows hospitals as key driver of state, local economies
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) 2018, Pennsylvania’s hospitals fueled $136.1 billion in total economic impact and supported nearly 654,000 jobs—more than one of every 10 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 $136.1 billion in total economic impact, Pennsylvania’s hospital community contributes:
- $60.5 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
- $75.6 billion in ripple impact—the additional economic activity that results from the circulation of hospital dollars in local communities and across the state
The nearly 654,000 jobs powered by the hospital community—which provide $32.3 billion in total wages—include:
- More than 290,000 jobs directly associated with hospitals and health systems
- More than 363,000 jobs through ripple effects—such as employees of hospital contractors or service providers whose salaries are supported by hospital staff spending
The hospital community’s economic impact on the commonwealth has grown more than 50 percent during the last decade and, given demographic and economic trends, is projected to continue growing during the coming years.
Additionally, during federal fiscal year 2018, Pennsylvania hospitals, health systems, and universities with hospital-affiliated medical schools brought to Pennsylvania more than $1.8 billion in research dollars from the U.S. Department of Health and Human Services and Patient-Centered Outcomes Research Institute to Pennsylvania. This cutting-edge research drives up quality and innovation, and its effects are felt across the country and around the world.
“This white paper demonstrates the significance of Pennsylvania hospital care to the quality of life of our citizens and gives new insights into the economic engine that is commonwealth’s hospital community—one that is fueled by a strong workforce, innovative programs, and world-renowned researchers,” said Sari Siegel, PhD, HAP’s vice president, health care research, and the report’s lead author.
“While overall growth projections are strong, some hospitals remain financially stressed. Our work illustrates that hospitals often are the backbones of their communities and closure could cause devastating economic ripples throughout a region. The findings of this report underscore the need for policies that bolster hospitals’ long-term sustainability.”
Dr. Siegel said that as HAP members focus on health and wellness and helping people stay out of the hospital, they are implementing community health programs; leveraging technology, tools, and research to improve and streamline patient care; and broadening the teams of health care staff that treat patients. She noted that for hospitals to thrive, they need policies that reduce barriers to patient care and burdensome red tape, ensure fair telemedicine payment, and bolster Pennsylvania’s health care workforce education pipeline.