According to a new report released by the Hospital Association of Rhode Island (HARI), Rhode Island hospitals contributed more than $6.3 billion to the state's economy in 2010.
In 2010, the state’s hospitals employed 21,400 healthcare professionals with a total payroll of $1.8 billion. These jobs account for more than 6 percent of the state’s private sector employment and the wages paid to hospital employees make up nearly 11 percent of the state’s private sector payroll.
“Each hospital in our system is the largest employer in their local community. In addition, some of our hospitals are within the top 10 employers in the state,” said Amanda Barney, vice president of communications and administration at HARI. “The indirect contribution due to wages paid by our hospitals is that those dollars are spent on groceries, clothing, housing and other goods that generate $3.6 billion in economic activity for Rhode Island.”
Rhode Island hospitals also stimulate the economy by purchasing goods and services and upgrading their facilities. According to Barney, hospitals in the state spend more than $1.2 billion each year on goods and services they need in order to provide quality patient care, such as medical supplies, electricity for buildings and food for patients. The ripple effect of funds going fro the hospitals to vendors and businesses generates $2.5 billion to the local economy.
In addition, said Barney, Rhode Island spent nearly $90 million improving their facilities to meet advances in patient care. This capital spending generates about $178 million to the local economy every year.
“I think this really shows the importance of our hospitals to the local communities. They serve such an important role in contributing to our economy,” said Barney. “Hospitals are instrumental in creating a healthy, strong and desirable Rhode Island.”