Pennsylvania's hospitals annually contribute approximately $84 billion and 625,000 jobs to the state's economy, according to a new report by The Hospital and Healthsystem Association of Pennsylvania.
Carolyn F. Scanlan, HAP’s president and CEO, said the report - titled The Economic and Social Roles of Pennsylvania’s Hospitals - shows the positive effects Pennsylvania’s hospitals have as “economic anchors” in their communities.
“Pennsylvania’s hospitals are economic and social anchors providing healing, health and hope in our communities,” said Scanlan. “Pennsylvania’s hospitals also provide a safe haven and a safety net for Pennsylvania’s most vulnerable citizens.”
The HAP report quantifies hospital community benefit, which includes charity care and financial aid programs (such as uncompensated care, bad debt and Medicare and Medicaid underpayments), and other public education programs.
Based on data compiled from hospitals across the state, HAP estimates the value of hospital community benefit to be nearly $4 billion annually.
In the five years since HAP’s first report, the annual economic impact of Pennsylvania’s hospitals has increased by $28 billion.
The report updates HAP studies released in 2004, 2006 and 2007 and includes data from the U.S. Department of Commerce, the Pennsylvania Department of Labor & Industry and HAP member hospitals and health systems.
Scanlan warned that the deepening recession is taking its toll on hospitals, threatening their very survival and putting entire communities at risk through reduced access to healthcare and job losses.
“Pennsylvania’s hospitals are responsible for one out of every nine jobs in the commonwealth,” Scanlan said. “Policymakers must act prudently in response to this recession, and hospitals must be considered as part of any state and federal economic recovery.”
Scanlan lamented that funding for essential hospital services, including more than $75 million in combined state and federal Medicaid hospital funds, was cut from Gov. Ed Rendell’s proposed 2009-2010 state budget.
Among the HAP report’s findings, Pennsylvania’s hospitals annually:
- Provide approximately $84 billion to the state’s economy, including $34 billion in direct total spending and $50 billion in spending as a result of hospital operations.
- Support the employment of approximately 625,000 Pennsylvanians, including 286,000 in direct employment and 339,000 employed as a result of hospital operations.
- Generate total labor income of more than $26.3 billion.
The report also summarizes the findings of a recent survey about the impact of the recession on the state’s hospitals by showing the changes hospitals have made and will make to survive the recession, as well as the effects of the downturn on investment income and on the ability to borrow for technology and capital improvements.