Wisconsin hospitals generate $28 billion in annual economic activity for the state, according to a study released Thursday by the University of Wisconsin-Cooperative Extension Department of Agricultural and Applied Economics and the Wisconsin Hospital Association (WHA).
The study, “Healthy Hospitals. Healthy Communities,” found that nearly nine out of every ten counties in Wisconsin have at least one hospital, and in many communities, particularly in the rural areas of the state, the hospital is one of the largest employers.
Hospitals are less sensitive - but not immune - to economic downturns, the study noted. Employment in most hospitals through the recession remained fairly steady compared to other industries.
“Employment figures slumped in some sectors, but they remained fairly steady in Wisconsin hospitals,” said Steven Deller, an economist with the Department of Agricultural and Applied Economics at the University of Wisconsin-Madison and the University of Wisconsin Cooperative Extension and lead author of the report in a statement about the study. “The aging of baby-boomers and the rising life expectancies are anticipated to have a major impact on the demand for hospital services.”
The Wisconsin Department of Workforce Development has predicted that healthcare, and hospitals in particular, will be the single largest source of employment growth over the next several years.
“As we look past our current economic challenges, Wisconsin hospitals represent a significant and growing source of higher-paying employment opportunities in the future,” added Deller.
In addition, the study calculated economic multipliers and estimated that hospitals indirectly account for nearly 115,000 additional jobs statewide because hospitals and their employees purchase goods and services from other businesses in their communities.
A second report released Thursday by WHA, “Caring for Our Neighbors,” showed that in 2010, Wisconsin hospitals contributed $1.4 billion in community benefits. Wisconsin hospitals provided $232 million in charity care and absorbed nearly $800 million in government program shortfalls. They spent millions more supporting free medical and dental clinics, medical screenings and providing health education programs.