Hospitals added $155 billion to the economy in 2020

Pennsylvania hospitals contributed $155 billion in economic activity during fiscal year 2020, according to The Hospital and Healthsystem Association of Pennsylvania (HAP), approximately 20 percent of the state’s total gross domestic product.

In addition, hospitals supported more than 615,000 jobs, one in nine statewide, generating more than $38 billion in wages, salaries, and benefits. More than 270,000 of these positions were direct jobs. A hospital is the area’s top employer in 19 counties.

“The past year reinforced that hospitals are vital to all Pennsylvanians,” Andy Carter, HAP president and CEO, said. “In addition to providing excellent care to all who need it—regardless of health condition or ability to pay — Pennsylvania hospitals are the bedrock of their communities’ and our state’s economies. The COVID-19 pandemic has worsened the financial strain on hospitals and it’s not over yet. It’s critical that Pennsylvania hospitals have the financial resources and regulatory flexibility they need to continue to serve their communities.”

The report also found that hospitals lost more than $6.5 billion in revenue caused by a decrease in care and the suspension of scheduled services not related to COVID-19. Further, it revealed that general acute care hospitals had $809 million in foregone revenue caused by bad debt and charity care.