In 2010, Arkansas hospitals contributed an estimated $10.3 billion to the state's economy and directly employed 42,300 people, according to a recent report published by the Arkansas Hospital Association.
The report, "What’s at stake: Arkansas Hospitals’ Impact on the Economy and our Communities," discusses the ways in which Arkansas hospitals provide well-paying, consistent employment; stimulate the local economy with purchases of goods and services; and improve infrastructure for all Arkansas residents.
“The major thing we want to emphasize is that locally in those communities the hospitals are the major economic drivers and an integral part of the local community,” said Paul Cunningham, executive vice president at Arkansas Hospital Association. “These days, providing jobs is a huge issue.”
According to the report, Arkansas hospitals indirectly support another 32,700 jobs for a combined payroll effect of $4.9 billion.
The hospitals also spend about $2.67 billion per year on the goods and services needed to provide healthcare services such as medical supplies, electricity for buildings and food for patients. Funds spent to buy goods and services flow from the hospital to vendors and businesses and then ripple throughout the economy. Vendors who receive payments from the hospitals then turn around and buy their own operational needs, which generates another $2.25 billion for the local economy. The total combined impact comes to around $4.9 billion.
“It’s important right now to understand what kind of impact the hospitals have on the local economy because we’re facing a situation over the next few years where hospitals in the state could encounter some very serious losses in Medicare and Medicaid payments,” said Cunningham. “We want local leaders to know that this is an area they can speak out for. If they don’t, there are many hospitals at risk for possibly not being here five years from now due to not getting enough in payments.”
As far as improving infrastructure for all Arkansas residents, in 2010, state hospitals recorded $249,273,000 in spending related to buildings and equipment, and capital spending by hospitals generates approximately $459 million for the local economy per year.