Nashville: Hotbed for Healthcare

The healthcare industry contributes nearly $30 billion annually to Nashville’s local economy, according to an economic impact study released yesterday by the Nashville Health Care Council and Middle Tennessee State University's (MTSU) Business and Economic Research Center.

“Healthcare will continue to be a primary strength that Nashville can build upon from an economic development perspective,” says Ralph Schulz, president & CEO of the Nashville Area Chamber of Commerce, at a press conference announcing the study results.

Healthcare is not only largest employer, but the fastest growing as well, says Nashville Mayor Karl Dean. “We want companies to continue to grow and expand healthcare in Nashville.”

That may not be a hard sell, considering 95% of Nashville Health Care Council member CEOs indicated that having a Nashville headquarters is important to their company's positive performance, according to a survey of approximately 150 member companies of the Nashville Health Care Council.

“The results show healthcare is a dynamic growth industry with global outreach,” says Murat Arik, associate director of the Business and Economic Research Center at MTSU.

The study, “The Health Care Industry in the Nashville MSA: Its Scope and Impact on the Regional Economy,” examined the Nashville healthcare industry and its economic impact locally, nationally, and globally. It analyzed core clinical providers, which include hospitals, ambulatory services, and nursing and residential care facilities operated locally; and other related healthcare companies, including healthcare services management, managed care, life sciences, and professional services firms that operate on a local, national, or international basis.

Key findings include:

• The Nashville healthcare industry contributes roughly 210,000 jobs to the local economy.
• 56 healthcare companies have headquarters in Nashville that generate nearly 400,000 jobs and more than $62 billion in revenues worldwide. (Only companies with more than $500,000 in revenue and at least 100 employees were included in this analysis).
• There are more than 250 healthcare companies with operations in Nashville, an industry concentration that ranks it above 13 other similar cities including Atlanta, Birmingham, Dallas, Denver, Indianapolis and Louisville, and more than 300 professional service firms such as: accounting, architecture, banking, and legal, providing expertise in the healthcare industry.
• One in eight Nashville workers is employed by a healthcare provider.
• The Nashville healthcare industry generated $13 billion in personal income for the local economy in 2008.
• The average annual wage of the Nashville healthcare industry is $53,000, significantly higher than the average Nashville wage of $39,000.

The healthcare industry is also a great philanthropic resource for the community. The healthcare community in Nashville is building a better region, says Schulz.

Mayor Dean agrees. “The healthcare industry is part of what makes Nashville great and will continue to play a huge role in its future,” he says.