Report: Hospitals Provide Stability to New Jersey’s Economy

PRINCETON, N.J., Oct. 12  — Even as the economy continues to struggle, one industry in New Jersey remains a strong vital resource – New Jersey’s hospitals. In 2008, the state’s 73 acute care hospitals contributed 145,000 jobs and $18 billion in spending that fueled local and state economies, according to a new report from the New Jersey Hospital Association.

“In this sagging economy, New Jersey’s hospitals provide not only healthcare services, but also an economic shot-in-the-arm,” said NJHA President and CEO Betsy Ryan. “Their communities can count on them to provide endless benefits through jobs, local spending and community health services.”

NJHA’s 2009 Economic Impact Report is based on 2008 hospital cost reports filed with the State of New Jersey. The report shows that New Jersey’s acute care hospitals delivered:

* $18 billion in total expenditures
* $2.3 billion in purchased services
* Nearly 116,000 full-time jobs and total employment of almost 145,000 full-time and part-time positions
* More than $7 billion in total employee salaries
* $400 million in state income taxes paid by hospital employees
* $1.5 billion in charity care services to New Jersey’s working poor and other uninsured residents.

The report examines hospitals’ contributions statewide and by county, as well as the economic contributions of individual hospitals to their local communities.

“Like other sectors, hospitals have felt the sting of the recession,” said Sean Hopkins, NJHA’s senior vice president of health economics. “But the demand for healthcare doesn’t go away, and that makes hospitals a critical part of the Garden State’s social infrastructure and its economy.”

To view the report, log on to the NJHA Web site at www.njha.com/press/Reports.aspx and click on “Economic Impact Report 2009.”

SOURCE New Jersey Hospital Association