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Northeastern Ohio hospitals pump $11.5 billion into area economy

Economic boost also included more than 160,000 jobs, with average worker drawing roughly $82,000 in salary, benefits.
By Jeff Lagasse , Editor

Hospitals in northeastern Ohio contributed to a direct and indirect labor income of $11.5 billion and a total of 167,534 jobs in the region in 2015, says a new report from The Center for Health Affairs.

Examining the healthcare sector in that region of the state, the study examined the tax impact, utilization, average annual salary and the community benefit of hospitals in northeastern Ohio.

Among the findings are that the region's hospitals directly employ 81,836 individuals, and the total labor income due to that employment is $6.8 billion. The average hospital worker, meanwhile, draws $82,825 in salary and benefits.

Northeast Ohio hospitals encompass 9,851 beds, the study found, and see an average of 4,627 daily inpatients. The Center for Health Affairs estimates that the total community benefit of these hospitals is $1.8 billion.

"This information is not surprising to anyone familiar with the Cleveland healthcare sector," said Bill Ryan, president and CEO of The Center for Health Affairs, in a statement. "Hospitals are always our top employers, they always fill the top few slots on 'largest employers' lists, and the region is nationally known for its hospitals. People travel from across the country -- and even across the world -- to receive care here."

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The report, which was also published as a two-page infographic, uses data from several sources, including the Center for Health Affairs' Volume Statistics Report, which compiles hospital utilization data from all of the region's hospitals. It also utilized the Center's tax study, which examines the local taxes and community benefit of hospitals in northeastern Ohio, and an economic impact report commissioned by the Center.

An analysis from the American Hospital Association found that, in 2008, hospitals nationwide employed more than 5 million people, spent about $320 billion on goods and services from other businesses, and created more than $2 trillion of economic activity.

Twitter: @JELagasse