PROVIDENCE – Hospitals contributed an estimated $7.6 billion to the local economy according to the Hospital Association of Rhode Island in its annual report on the economic impact of hospitals released on Monday.
According to the release, Rhode Island hospitals paid approximately $1.8 billion dollars in wages and benefits in 2015, directly employing 20,525 health care professional full-time equivalents. The report also said that the industry indirectly supports 21,034 jobs with its economic activity.
“Our industry is vital to the state’s economy and health,” said M. Teresa Paiva Weed, president, Hospital Association of Rhode Island. “Hospitals support one in 10 jobs in Rhode Island. Hospitals are an economic engine that is providing Rhode Islanders with well-paying jobs and supporting local business.”
The HARI report showed significant growth in the last year for the industry sector compared with both 2013 and 2014, when Ocean State hospitals were estimated to contribute $6.9 billion and $6.6 billion, respectively, to the state’s economy. The number of people employed directly by the industry rose 4 percent over the year.
HARI also estimated that in 2015 health care professionals’ personal expenditures accounted for $3 billion spent in the local economy.
In addition to personal expenses, hospitals spent $2.1 billion on goods and services in 2015, which the study said generated an additional $2 billion for the local economy.
HARI also reported that Rhode Island hospitals spent $260 million upgrading facilities and technology, which generated an additional $247 million for the local economy.
Chris Bergenheim is the PBN web editor.
