Pennsylvania’s hospitals and health systems supported approximately 654,000 jobs, more than one in 10 in the state, and drove $136.1 billion in total economic impact in fiscal year 2018, according to a report released Monday by the Hospital and Healthsystem Association of Pennsylvania (HAP).
The report analyzed the direct and ripple employment and economic effects of hospitals and health systems in Pennsylvania. It found that these organizations directly provided more than 290,000 jobs and indirectly supported 363,000 jobs, such as those of hospital contractors and service providers supported by hospital staff spending. The approximately 654,000 jobs provided $32.3 billion in total wages, according to the report.
The analysis also found that hospitals provided $60.5 billion in direct impact, including dollars paid for employee salaries and wages and for goods and services used by hospitals, as well as $75.6 billion in ripple impact, which includes the economic activity resulting from the circulation of hospital dollars.
Pennsylvania hospitals, health systems, and universities with hospital-affiliated medical schools also brought 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 the Commonwealth in fiscal year 2018.
“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 the commonwealth’s hospital community—one that is fueled by a strong workforce, innovative programs, and world-renowned researchers,” Sari Siegel, HAP’s vice president of health care research and the report’s lead author, said.
“While overall growth projections are strong, some hospitals remain financially stressed,” Siegel continued. “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.”
HAP noted that the economic impact of hospitals and health systems in Pennsylvania has grown more than 50 percent during the past decade is expected to continue increasing.