Report: While Economy Struggles, N.J. Hospitals Provide $18.6 Billion in Economic Benefits and 140,000 Jobs

PRINCETON, N.J., Oct. 26, 2011 -- /PRNewswire-USNewswire/ -- New Jersey's hospitals are a strong and reliable source of jobs and economic growth in the Garden State, delivering $18.6 billion in economic activity and about 140,000 jobs in 2010 - even in the depths of a nationwide downturn.

Those are among the findings in the 2011 N.J. Hospital Economic Impact Report, produced by the New Jersey Hospital Association. This annual accounting of economic activity uses data gathered from 72 acute care hospitals in the Garden State and compiles their valuable economic contributions statewide and across counties and individual hospitals. The full report is available at http://www.njha.com/Press/Pdf/N.J.Hospitals2011EconomicImpactReport.pdf.

All told, New Jersey's hospitals provided 114,000 full-time jobs last year and about 140,000  total jobs when including part-time positions.

"New Jersey's healthcare community is a source for hope, not just for the quality care we provide to people in their times of need, but because we are one of the only economic engines generating new jobs," said NJHA President and CEO Betsy Ryan. "Hospitals continue to provide economic stability to our state, and they play a critical role in our continued hopes for an economic recovery."

New Jersey hospitals' total economic activity reached more than $18.6 billion in 2010, an increase of about $40 million compared with 2009, the report shows.

Additional findings from the report show that New Jersey hospitals provided the following economic benefits in 2010:

  • $2.4 billion in services purchased from other New Jersey businesses
  • $7.6 billion in total employee salaries
  • $420 million in state income taxes paid by hospital employees
  • More than $1.3 billion in charity care services to New Jersey's working poor and other uninsured residents.

NJHA's statewide employment figures do not reflect 2011 increases in hospital and healthcare employment as reported by the U.S. Bureau of Labor Statistics. BLS data shows that the nation's hospitals have created more than 66,000 jobs through September 2011. More than 4.7 million people worked in hospitals in September, according to the BLS.

The entire healthcare sector, including other healthcare providers such as nursing homes, home health agencies, physician practices and others, also is reporting healthy economic contributions. The BLS reports that healthcare accounted for more than 14 million jobs nationwide in September. In addition, healthcare employment increased 1.5 percent in New Jersey in 2010, according to the state Department of Labor and Workforce. That same report says that the "healthcare and social assistance" sector remains the largest source of private-sector jobs in New Jersey, employing 493,410 people statewide

"In this economy, it's all about jobs. And once again, New Jersey's hospitals demonstrate their importance as a vital source of employment in our state," said Sean Hopkins, NJHA's senior vice president of health economics. "But hospitals' contributions extend far beyond jobs. This report also shows hospitals' critical role as a healthcare safety net for those who have lost their health insurance, providing more than $1.3 billion in charity care services last year."

NJHA, based in Princeton, is a not-for-profit trade organization committed to helping its member hospitals and post-acute providers deliver quality, accessible and affordable care to their communities.

SOURCE New Jersey Hospital Association