Overall contribution from New Jersey hospitals to Garden State economy surpasses $20 billion

New Jersey Hospital Association (NJHA)Nov 20 2013

New Jersey hospitals contributed $20.4 billion to the Garden State economy in 2012, according to the 2013 N.J. Hospitals Economic Impact Report released today by the New Jersey Hospital Association (NJHA). This is the first time in the six years NJHA has published this report that the overall contribution from hospitals surpassed $20 billion.

Despite a continued sluggish economy, 2012 saw increases in key areas of hospital activity such as jobs growth, goods and services purchased from other businesses and state income taxes paid by employees. Hospital jobs in New Jersey increased to 144,000 in 2012, which includes 120,000 full-time jobs.

"New Jersey hospitals remain a strong and reliable source of jobs, salaries and spending, demonstrating that they are bedrocks of our state and local economies" said NJHA President and CEO Betsy Ryan. "In addition, New Jersey hospitals and the dedicated professionals who work in them provide valuable healthcare services to the patients and communities they serve."

The Economic Impact Report uses data gathered from 72 acute care hospitals in the Garden State and compiles their economic contributions statewide and across counties and individual hospitals. The 2013 edition uses data from year-end 2012. The full report is available at http://www.njha.com/media/407520/NJHA2013EconomicImpactReport.pdf.

Specific highlights from the 2013 report include:

• New Jersey hospitals purchased $2.6 billion in goods and services from other companies last year, an increase of $100 million over 2011. Key areas include contracted labor ($1.3 billion), pharmaceuticals ($881 million), utilities ($267 million), dietary, laundry and housekeeping ($139 million) and building supplies ($19 million).
• New Jersey hospitals paid $8 billion in employee salaries last year, compared with $7.9 billion in 2011.
• Employees at New Jersey hospitals paid approximately $450 million in state income taxes last year, compared with $435 million in 2011.

"These numbers tally only a fraction of the economic impact of hospitals on the state's economy. As the hospitals spend dollars for operating and capital expenditures, they create jobs and payroll in other businesses in the economy," said Sean Hopkins, NJHA's senior vice president of health economics.