CRANSTON – Hospitals across Rhode Island have a local economic impact of $5.87 billion per year, the Hospital Association of Rhode Island (HARI) says in a new report based on an analysis of federal data.
The care the state’s hospitals provide to the community 24 hours a day, seven days a week “is and always will be our most valuable contribution,” the association said. But their contribution to the community is less-often recognized.
“As major employers and purchasers, hospitals are critical to the state’s economic viability,” HARI said. “Seven of the 20 largest employers in Rhode Island are hospitals. But, hospitals’ economic impact on our community doesn’t stop there. Their purchases of goods and services necessary to deliver quality patient care create a ripple effect throughout the local economy, creating additional jobs and spending.”
• Ocean State hospitals employ 20,370 health care professionals, or nearly 5 percent of the state’s private employment.
• Those workers earned more than $1.59 billion in 2007, or roughly 10 percent of the year’s private-sector pay statewide. Moreover, HARI said, “Dollars earned by hospital employees and spend on groceries, clothing, housing and other goods generate $3.2 billion in economic activity” in Rhode Island.
• The state’s hospitals also spend more than $1 billion per year on goods and services, from medical supplies to electricity to food for patients. “Funds spent to purchase these items flow from the hospital to vendors and businesses and then ripple through the economy, generating” about $2.21 billion per year in local impact.
• Hospitals statewide spent nearly $200 million on improving their facilities in 2007. Those infrastructure investments generated more than $403 million for the local economy.
• Local hospitals’ improvements and purchases supported the creation of another 13,560 jobs in other businesses and industries.
The report was produced by the local association, in collaboration with the Healthcare Association of New York State, based on data hospitals are required to file each year with the U.S. Centers for Medicare and Medicaid Services. The report is based on data from 2007, the most recent period for which reports are available.
The document appeared to refer only to private hospitals. It included specific mention of Landmark Medical Center, Memorial Hospital of Rhode Island, The Miriam Hospital, Newport Hospital, the Providence VA Medical Center, Rhode Island Hospital, Roger Williams Medical Center, St. Joseph Health Services of Rhode Island, South County Hospital and The Westerly Hospital, but made no reference to the state-run Eleanor Slater Hospital in Cranston.
“Hospitals are critical to the economic viability of our state,” HARI president Edward J. Quinlan said in a statement accompanying today’s report. “To continue to attract jobs to and keep families in our state, it is critical that we have high-quality health care providers and services,” Quinlan added. “We urge our elected officials and community leaders to recognize that our hospitals are instrumental to a healthy, strong and desirable Rhode Island.”
The Hospital Association of Rhode Island is a statewide trade organization providing advocacy, representation, education and other services to its member hospitals. To learn more, visit www.hari.org.
