IL Hospitals Generate $75B Annually
Illinois' 200 hospitals and health systems are responsible for about 426,700 direct and indirect jobs and generate $75.1 billion for the state's economy, the Illinois Hospital Association reports.
An IHA study, Illinois Hospitals $75 Billion Impact on our Economy—the first report of its kind in Illinois that examines the statewide economic impact of hospitals—found that Illinois hospitals are among the top three employers in nearly half of the state's counties. Hospitals are essential to economic development because companies looking to relocate or expand want access to high-quality healthcare services.
"Illinois hospitals play a vital role in strengthening the economy of their local communities and the state, which is more essential now during the economic downturn," said IHA President Maryjane A. Wurth. "By providing jobs for a wide range of healthcare workers and spurring more economic activity by spending on goods, services and capital improvements, hospitals are a cornerstone of the local and state economy."
The report states that:
- Illinois hospitals employ more than 250,000 people and expend $14.8 billion a year on payrolls, resulting in 426,700 direct and indirect jobs and an economic impact of $35.5 billion;
- Illinois hospitals spend $16.5 billion on goods, services and capital improvements, resulting in $23.1 billion in other spending, for an impact of $39.6 billion;
- Illinois hospitals generate a total statewide economic impact of $75.1 billion;
- Each Illinois hospital job generates another 1.1 jobs in the state;
- Every dollar spent by Illinois hospitals on goods, services and payroll generates another $1.40 in spending throughout the economy;
- Healthcare/social assistance will be the second fastest growing sector in the Illinois economy in the next eight years;
- Healthcare/social assistance will create more jobs than any other sector—nearly 150,000 by 2018; and
- The healthcare sector is the sixth-highest contributor to state GDP at 6.8%.
"To continue to retain and create jobs, attract businesses to their communities, and provide access to high-quality healthcare, Illinois' hospitals must have funding support to keep them fiscally healthy," Wurth said. "We urge state and federal lawmakers to take steps to continue to invest in the state's healthcare system so hospitals can remain strong and viable employers in their communities."