A trade group representing Pennsylvania hospitals has issued a study quantifying the community benefit its members deliver, as well as the economic impact they have on the state. The report, published by the Hospital & Healthsystem Association of Pennsylvania, concluded that its members deliver $3.9 billion in community benefits per year, which includes unreimbursed costs for treating indigent patients and community services like free clinics, health screenings and outreach. It also concluded that the hospitals contribute nearly $77 billion to the state's economy, including $32.3 billion in direct spending and $44.5 billion in secondary spending. Also, the hospitals employ 563,000 through direct and secondary channels, the group said.
As I see it, HAP is very wise to toot its members' horn this way. Given the growing pressure on hospitals to justify tax exemptions, anything that highlights their contributions is politically smart, and what's more, forces hospitals to think about such reporting more carefully. Frankly, I'm surprised I don't hear more about such initiatives in other states.
To learn more about the report:
- read this Philadelphia Business Journal piece
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