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Research and analysis by Avalere Health Beyond Health Care: The Economic Contribution of Hospitals FINAL April 2, 2008.

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Presentation on theme: "Research and analysis by Avalere Health Beyond Health Care: The Economic Contribution of Hospitals FINAL April 2, 2008."— Presentation transcript:

1 Research and analysis by Avalere Health Beyond Health Care: The Economic Contribution of Hospitals FINAL April 2, 2008

2 Research and analysis by Avalere Health Chart 1: National Health Expenditures as a Percentage of Gross Domestic Product and Breakdown of National Expenditures on Health, 2006 Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 7, 2008. Health care and hospitals are major contributors to the economy…

3 Research and analysis by Avalere Health Chart 2: Impact of Community Hospitals on U.S. Economy (in billions), 2006 Source: Avalere Health, using BEA RIMS-II (1997/2005) multipliers applied to 2006 American Hospital Association Annual Survey data. …supporting other businesses and jobs in communities across the U.S.

4 Research and analysis by Avalere Health Chart 3: Number of Full-time and Part-time Hospital Employees, 1993-2006 Source: Avalere Health analysis of 2006 American Hospital Association Annual Survey data for community hospitals. Nationwide hospitals employ over 5 million people…

5 Research and analysis by Avalere Health Chart 4: Hospital Employment versus Employment in Other Industries, 2007* Source: Department of Labor, Bureau of Labor Statistics, Current Employment Statistics Survey, customized tables. Data released 2008. http://www.bls.gov/ces. *2007 annual projections based on data as of November 2007. …making them the second-largest employer in the private sector…

6 Research and analysis by Avalere Health Chart 5: Percent of Total Regional Employment* by Hospitals, 2006 Source: Avalere Health analysis of American Hospital Association 2006 Annual Survey data and 2006 total non-farm employment data from the Bureau of Labor Statistics. *Does not include farm employment. New England Mid-Atlantic East North Central West North Central West South Central Mountain Pacific East South Central South Atlantic 3.1% 2.9% 3.4% 4.3% 3.5% 4.4% 4.5% …accounting for more than four percent of employment in most regions.

7 Research and analysis by Avalere Health Hospitals support a range of positions for workers with varying skill levels. Source: Department of Labor, Bureau of Labor Statistics, 2006 National Industry-specific Occupational Employment and Wage. Data released May 2007. http://www.bls.gov/oes/current/naics3_622000.htm. Chart 6: Hospital Employment by Occupation Type, 2006

8 Research and analysis by Avalere Health Chart 7: Average Weekly Earnings of Workers, Hospitals* versus All Service-providing Industries, 1990-2006 Source: Department of Labor, Bureau of Labor Statistics, Current Employment Statistics (CES) Survey, customized tables. Data released 2008. http://www.bls.gov/ces. *Includes physicians employed by hospitals. Hospital jobs provide higher pay than other service sector jobs.

9 Research and analysis by Avalere Health Chart 8: Percent Change in Employment, Seasonally-adjusted: Hospitals versus All Industries (Total Non-farm), 2005-2007 Source: Department of Labor, Bureau of Labor Statistics. http://www.bls.gov/bls/employment.htm. *2007 Qtr 4 data are preliminary. 200520072006 Hospitals provide a consistent source of jobs.

10 Research and analysis by Avalere Health Hospitals purchase a variety of goods and services… Source: AHA analysis of Centers for Medicare & Medicaid Services data, using base year 2002 weights. *Does not include capital. **Includes postage and telephone expenses. Chart 9: Percent of Hospital Costs* by Type of Expense, 2 nd Quarter 2007

11 Research and analysis by Avalere Health …generating jobs throughout the economy… Source: Avalere Health, using BEA RIMS-II (1997/2005) multipliers applied to 2006 American Hospital Association Annual Survey data. Chart 10: Impact of Community Hospitals on U.S. Jobs (in millions), 2006

12 Research and analysis by Avalere Health Chart 11: Hospital Impact on Sectors of the U.S. Economy (in billions), 2006 Source: Avalere Health, using BEA RIMS-II (1997/2005) multipliers applied to 2006 American Hospital Association Annual Survey data. IndustryEconomic Impact Health care and social assistance$659.5 Manufacturing281.1 Real estate and rental and leasing177.7 Finance and insurance119.9 Professional, scientific and technical services78.0 Retail trade76.7 Wholesale trade61.4 Information61.4 Transportation and warehousing58.4 Administrative and waste management services58.1 Accommodation and food services48.2 Other services47.1 Management of companies and enterprises37.7 Utilities33.4 Agriculture, forestry, fishing and hunting27.6 Educational services15.1 Arts, entertainment and recreation13.4 Mining11.9 Construction9.3 Total$1,875.8 …and supporting other industries.

13 Research and analysis by Avalere Health Hospitals offer an array of community services… Chart 12: Percent of Community Hospitals Offering Selected Community Outreach Services, 2006 Source: Health Forum. (2008). AHA Hospital Statistics.

14 Research and analysis by Avalere Health … and provide charity care and other care for which no payment is received. Chart 13: Total Uncompensated Care Costs (in billions), 1998-2006 Source: Avalere Health analysis of 2006 American Hospital Association Annual Survey data for community hospitals.

15 Source: Avalere Health, using BEA RIMS-II (1997/2005) multipliers for hospital NAICS Code 622, released 2006, applied to American Hospital Association Annual Survey data for 2006. Hospital jobs are total part time and full time jobs. Hospital labor income is defined as payroll plus benefits. The percent of total employment supported by direct and indirect hospital employment is based on 2005 BLS data. *Expenditures are defined as net patient revenue + other operating revenue. ** The multiplier is the factor by which spending in one sector of the economy affects other sectors. For example, nationally each hospital job results in a total of 2.7 jobs in the economy as a whole because hospital employees use their wages to purchase goods and services which creates income and jobs for other businesses. State Name Number of Hospital Jobs (FT and PT) Multiplier** for Employment Effect of Hospital Jobs on Total Jobs in State Economy Percent of Total (Non-farm) Employment Supported by Hospital Employment Hospital Payroll and Benefits ($ millions) Multiplier** for Earnings Effect of Hospital Payroll and Benefits on Total Labor Income ($ millions) Hospital Expenditures* ($ millions) Multiplier** for Output Effect of Hospital Expenditures on Total Output in State Economy ($ millions) Alabama83,8231.9673164,9058.32%$3,7161.7256$6,412$7,8952.1553$17,016 Alaska10,9721.883320,6646.56%$7521.5404$1,158$1,4401.8578$2,674 Arizona77,7722.0659160,6696.08%$4,3901.7575$7,715$9,4982.1687$20,598 Arkansas48,4961.908392,5457.71%$2,1831.6570$3,617$4,5712.0430$9,339 California470,0012.23961,052,6146.98%$29,5241.9783$58,407$57,5002.5385$145,964 Colorado62,3742.2153138,1776.06%$3,7021.9505$7,221$7,9142.4787$19,617 Connecticut63,8601.8816120,1597.15%$3,9271.7173$6,745$7,1172.1326$15,178 Delaware18,3151.863434,1287.82%$1,0491.6184$1,698$1,8941.9732$3,737 District of Columbia25,5901.537339,3405.72%$1,6071.3705$2,202$3,0481.3911$4,239 Florida266,8702.0257540,5996.75%$14,7621.8039$26,629$31,3222.2321$69,913 Georgia136,7282.1334291,6967.14%$7,0151.9374$13,590$14,3252.4788$35,508 Hawaii16,9732.094335,5475.76%$1,0621.7063$1,811$2,0032.0856$4,177 Idaho21,6262.026843,8326.85%$1,0561.6801$1,774$2,2542.0409$4,600 Illinois237,7822.1803518,4368.74%$12,4982.0037$25,043$24,2442.6046$63,147 Indiana124,7132.0080250,4248.42%$6,3961.7551$11,226$13,2622.2268$29,533 Iowa68,7911.9108131,4468.75%$3,0571.6650$5,090$5,9832.0554$12,297 Kansas49,2751.932495,2197.03%$2,4081.6914$4,073$4,8472.1363$10,356 Kentucky78,6921.9542153,7808.33%$3,8341.7150$6,576$8,5942.1431$18,418 Louisiana82,6402.0044165,6448.92%$3,8121.7314$6,600$7,6922.1075$16,212 Maine32,7792.034666,69210.85%$1,6271.6824$2,737$3,1712.0564$6,520 Maryland88,3332.0238178,7686.91%$4,8411.7899$8,666$10,1202.2321$22,588 Massachusetts157,1052.0248318,1069.81%$9,1501.8252$16,700$18,5162.2851$42,311 Michigan200,7232.0031402,0689.26%$10,9201.7785$19,421$21,1872.2095$46,813 Minnesota107,7042.1564232,2538.41%$5,9821.8575$11,112$11,3352.3496$26,632 Mississippi54,9861.8829103,5339.06%$2,6301.6302$4,287$5,2382.0105$10,531 Missouri127,6912.0651263,6959.51%$6,1701.8165$11,208$13,8862.2909$31,812 Montana20,1401.951239,2979.06%$9691.6224$1,573$1,8921.9664$3,720 Nebraska40,9891.945579,7448.42%$1,9751.7060$3,369$4,1822.1064$8,809 Nevada21,8221.910241,6843.25%$1,5401.6205$2,496$3,0801.9644$6,050 New Hampshire27,3061.964653,6458.39%$1,6331.7711$2,893$3,0722.1229$6,523 New Jersey141,2012.1060297,3697.30%$8,7051.8925$16,474$15,8372.4329$38,530 New Mexico26,8782.052355,1626.62%$1,4071.6443$2,314$2,6741.9675$5,262 New York394,2381.8775740,1828.59%$26,4691.7057$45,148$47,1522.1628$101,980 North Carolina157,7872.1212334,6988.32%$8,2021.8418$15,106$16,7512.3413$39,220 North Dakota19,6731.853736,46810.33%$8911.5887$1,415$1,6361.9036$3,115 Ohio252,0322.1076531,1839.76%$13,4641.8467$24,864$26,7892.3444$62,805 Oklahoma55,0812.0895115,0927.42%$2,6471.7750$4,698$5,8162.2163$12,889 Oregon56,6292.1556122,0697.17%$3,3321.7595$5,862$6,3822.1885$13,968 Pennsylvania275,3962.1247585,13410.17%$13,8621.9268$26,709$29,1442.4728$72,068 Rhode Island20,8511.945840,5728.22%$1,3681.6873$2,309$2,4192.0523$4,964 South Carolina69,3642.0776144,1117.57%$3,4991.7698$6,192$7,9362.2559$17,903 South Dakota20,2681.847937,4539.39%$9101.5841$1,441$1,8381.9154$3,520 Tennessee115,5072.1489248,2138.92%$5,6251.8571$10,447$11,8242.3916$28,278 Texas316,1562.2890723,6817.20%$17,3111.9720$34,138$36,9372.5737$95,065 Utah38,3502.222085,2147.08%$1,7201.9095$3,285$3,8802.4462$9,491 Vermont12,7411.928324,5687.99%$8051.5950$1,284$1,3831.8848$2,606 Virginia105,1341.9195201,8055.42%$5,6281.7630$9,922$12,6202.2526$28,428 Washington92,2172.1432197,6396.91%$5,6671.8034$10,219$10,8192.2743$24,605 West Virginia40,7911.832574,7509.89%$1,9381.5628$3,029$3,9461.8436$7,274 Wisconsin108,1402.0058216,9077.58%$5,5911.7551$9,813$11,9692.1855$26,159 Wyoming8,8381.734515,3305.54%$4451.4657$652$8391.7279$1,450 U.S.5,152,1432.700313,912,33210.24%$283,6742.4050$682,235$569,6723.2927$1,875,760 Chart 14: Impact of Community Hospitals on U.S. Economy; All States, DC and Total U.S., 2006


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