Physician Practices Make Significant Economic Impact on NJ Economy

LAWRENCEVILLE, N.J.--(BUSINESS WIRE)-- Employment in medical practices in New Jersey grew steadily through much of the past decade despite two recessions and contributes significantly to the state’s economy, according to an Edward J. Bloustein School of Planning and Public Policy study.

The report estimates there are approximately 9,100 private practice physicians’ offices employing nearly 70,000 medical professionals and other staff in NJ as of 2009. In addition to vital health care services, the ongoing annual expenditures associated with operating private practices constitute a significant contribution to the state economy, directly through their employment of staff and purchase of materials, equipment and services, and indirectly, through the multiplier or ripple effects of these expenditures.

The study finds the industry directly employs more people than comparable professional and other industries including offices of lawyers, the accounting and engineering sectors, and the amusement and recreation sector.

Estimates of the direct and indirect contributions of physicians’ practices in New Jersey to the state economy include:

  • Nearly 113,000 jobs
  • $7.3 billion in annual income
  • $10.7 billion in annual gross domestic product for the state
  • $334 million in annual state tax revenue
  • $353 million in annual local tax revenue

The sector’s economic growth has been significantly stronger than that of the state as a whole, and the industry was not strongly affected by the deep job losses of the 2007-2009 recession. To the contrary, while total state employment declined by almost 3% from 2001 to 2009, employment by physicians’ offices grew by over 20% and total annual wages in the industry grew by almost 50%.

This performance is consistent with the private healthcare sector as a whole, which saw employment growth of approximately 23% at state and national levels over the same period. As of 2009, physicians’ offices in New Jersey directly employed nearly 70,000 people with a total payroll of $5.5 billion.

“The annual economic contributions of medical practices to the New Jersey economy are significant,” said Dr. Joseph J. Seneca of Rutgers’ Edward J. Bloustein School of Planning and Public Policy, a co-author of the study. “The broader benefits resulting from effective health care and treatment are undoubtedly enormous and should be properly added to our estimates of economic and fiscal impacts.”



CONTACT:

Daniel Klim, 609-896-1766 x203

KEYWORDS:   United States  North America  New Jersey

INDUSTRY KEYWORDS:   Practice Management  Health  Hospitals  Public Policy/Government  Public Policy  State/Local  Professional Services  Insurance  Legal  Nursing  General Health  Managed Care

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