For immediate release: March 14, 2005

 

For more information contact:

Lori L. Henshey

Communications Specialist

West Virginia Hospital Association

304/353-9747

Fax: 304/344-9745

Lhenshey@wvha.org

 

 

NEW Report SHOWCASES Economic Impact of WEST vIRGINIA’S Hospitals

 

CHARLESTON, WV – The American Hospital Association (AHA) has just released a report that shows on a state-by-state basis the impact of community hospitals on the local and U.S. economy. The Economic Contribution of Hospitals, conducted by the Lewin Group, supports the West Virginia Hospital Association’s (WVHA) long-term stance on the importance of hospitals to their communities.

“Healthcare is a major force in the economy and hospitals are a catalyst for economic growth and development,” said Steven J. Summer, President and CEO of the WVHA.

The Report notes that the role hospitals play in providing healthcare services – emergency care, inpatient and outpatient surgery and maternity services, for example – is widely understood by the public, while the important role hospitals play in the local economy is less understood. Nationwide, hospitals employ nearly five million people, rank second as a source of private sector jobs, and support employment across a wide range of skill levels. Hospitals offer a consistent and reliable source of job growth even during recessions, and provide weekly earnings higher than other service sector jobs. Along with employment, hospitals directly and indirectly support other businesses through the goods and services they purchase in the local economy.

 

Hospital activities create ripple effects throughout the economy in the following fashion:

¯                Hospitals purchase goods and services – drugs, information technology, food, linens,
bricks and mortar – from other businesses.

¯                Hospital employees spend their paychecks on the goods and services – groceries, cars, appliances and clothing – produced by other businesses.

¯                Wages and salaries paid by hospitals are subject to federal, state and local taxes.

Across America, local hospitals support four to 10 percent of state jobs and are economically vital to their communities. In West Virginia, hospitals:

  • Employ more than 36,000 full-time employees and contribute more than $1 billion annually in payroll to the economy;
  • Are among the top five employers in local counties;
  • Account for 19 of the top 100 employers in the state; and
  • Generate substantial business activity. For every one person directly employed in a hospital, 2.1 other jobs are created.

In fact, the Report clearly underscores the importance of West Virginia's hospitals on the state's economy, as it shows that 9.5 percent of total non-farm employment in West Virginia is supported by hospital employment, making this the state with the second highest percentage in the country. The report also indicates that the $3.3 billion in hospital expenditures for 2003 created an additional $2.6 billion in the state's economy.

West Virginia hospitals support their communities in many other ways, such as special programs to meet broader health and social needs; health care services for uninsured and underinsured patients; and outreach services to improve the health status of many at-risk populations.