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News Release: New Data Shows PA Hospitals Are Key Economic Driver

June 28, 2018

During fiscal year (FY) 2017, Pennsylvania’s hospitals created $128.9 billion in total economic impact and supported more than 650,000 jobs, according to new data published by The Hospital and Healthsystem Association of Pennsylvania (HAP).

The interactive resource details the direct and indirect employment and economic impact of hospitals and health systems—including not-for-profit and investor-owned facilities—and details the importance of these facilities to the communities they serve.

Highlights include:

  • Pennsylvania’s hospitals created $128.9 billion in total economic impact through wages and salaries. This includes $17.2 billion in direct wages and salaries (hospital clinical and administrative staff) and $15.3 billion in indirect wages and salaries (workers associated with the day-to-day function of hospitals)
     
  • Hospitals supported more than 650,000 jobs in Pennsylvania—more than 289,000 direct and more than 361,000 indirect employment. These jobs support a payroll of $32.5 billion
     
  • Health care comprises 12 percent of the state’s economy, more than manufacturing and retail trade
     
  • Hospitals are a top employer in 53 of Pennsylvania’s 67 counties
     
  • Every dollar directly spent by Pennsylvania hospitals results in an additional $1.24 spent in other parts of the economy through additional investments, resource utilization, and purchasing power

“HAP is proud of the Pennsylvania hospital community’s commitment to providing high-quality care and supporting family-sustaining jobs. Hospitals are working to better coordinate care, invest in and focus on efforts to help patients get and stay healthy—and stay out of hospitals altogether.” said Andy Carter, HAP president and CEO.

“We are making great strides to improve patient safety, to build new technologies, to re-tool our workforce, and to address social issues, such as food insecurity and violence. In order for this important work to continue, hospitals need financial stability, relief from regulatory burden, and reliable payments for services.”

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