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From the current print issue of NHBR
NHBR Article
Study measures hospitals’ economic impact
Thursday, February 4, 2010
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A report by the New Hampshire Hospital Association and the Foundation for Health Communities, “The Economic Impact of Hospital Systems in New Hampshire,” finds that the state’s hospitals have a $3.7 billion employment impact in both direct and indirect jobs.
According to the study, employment in the state’s health sector increased over 324 percent from 1970 to 2007 – nearly 28 percent growth in the last eight years – making it the second-fastest growing private sector.
In 2008, health care represented the third-largest employment sector, employing 12.8 percent of the state’s population, and paid the second most in wages – $2.4 billion, with an average salary of $64,566.
New Hampshire’s hospitals “critical access hospitals” – those with 25 beds or fewer and generally located in rural parts of the state -- are vital economic drivers in their regions, often being the largest employer in the area, according to the study.
The study found that the 13 smaller hospital systems have total employment of 5,881 and total payroll of $304.5 million.
As expected, the economic impact is equally as large for more urban areas. The researchers found that the 13 non-rural acute care hospitals employ 31,634, with a total payroll of $2.1 billion.
The study also found that Granite State acute care hospitals generate a secondary employment impact of 65,651 and an impact of $1.3 billion. In other words, for every one person employed at a hospital, 0.75 jobs were generated. Similarly, for every $1 in income created by a hospital, 54 cents of additional income was generated in the greater community, according to the study.
A copy of the report may be viewed at healthynh.com. – CINDY KIBBE/NEW HAMPSHIRE BUSINESS REVIEW
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