The Hospital and Healthsystem Association of Pennsylvania’s (HAP) Center for Health Policy Research released a report last week showing that hospitals are essential to the health and vitality of communities throughout the Commonwealth.
An analysis of FY 2023 data shows the full economic impact of Pennsylvania hospitals, both directly and indirectly. Their nearly $10 billion impact includes enhancing community health, providing charity care to patients, training and educating the next generation of health care professionals, conducting lifesaving medical research, and absorbing costs associated with caring for millions of Pennsylvanians covered by Medicare and Medicaid.
Key findings about the economic benefits of Pennsylvania hospitals include:
- Hospitals contribute $186.5 billion to the state and local economies – and hospitals’ economic impact has increased 67 percent over the past decade.
- Hospitals support 627,255 jobs throughout the entire Commonwealth. In fact, 57 of Pennsylvania’s 67 counties have at least one hospital among their top 10 employers and in 22 of those counties, a hospital is the largest employer.
- Hospitals generate $38.6 billion in wages, salaries, and benefits. Pennsylvania hospital jobs pay, on average, about nine percent higher than the statewide average wage for all sectors.
- Hospitals invested $1.2 billion educating the next generation of health professionals. Hospitals and universities with hospital-affiliated medical schools secured $1.9 billion in highly competitive federal research funding to advance health care innovation.
Despite these critical investments and economic benefits, HAP also reports that hospitals face significant financial strain – with more than half of the Commonwealth’s acute care hospitals operating at a loss during FY 2023.
“Ensuring hospitals’ long-term sustainability is critical not only to health, but also economic development, in Pennsylvania communities,” HAP President and CEO Nicole Stallings said. “Hospitals support good jobs and drive economic impact that ripples across other industries. They provide services that residents need, and that businesses look for in deciding where to locate and expand.”
The report, an infographic summary, and an interactive web page are available on HAP’s website.