A comprehensive study of the economic impact of health care in Mississippi shows that our state’s hospitals have a staggering impact on the state economy. Study findings show hospitals alone generate:
• $11.9 billion total impact on the state economy
• 60,143 full time job equivalent employees (5.7% of total statewide employment). Hospitals also created an additional 34,557 jobs outside of their facilities.
• Payrolls and benefits totaled $3.2 billion per year (with a total economic impact of $5.8 billion)
• Average hospital employee salary of $42,193 (compared to Mississippi average of $33,185)
These numbers tally only a fraction of the economic impact of the hospital 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. In total, 94,700 jobs are created by hospitals alone in Mississippi due to hospital employment, operational activities and construction activities.
The publication, Critical Care: The Economic Impact of Hospitals on Mississippi’s Economy, was commissioned by the Mississippi Hospital Association and conducted by DataGen. DataGen analyzed not only the direct economic contribution of hospitals, but also calculated how many jobs and how much income and tax revenue is created as a secondary effect. The jobs and payroll generated in other businesses are measured with employment and income multipliers derived for Mississippi.
“As Mississippi leaders continue to consider the state’s economic priorities and look for ways to create more jobs, they should keep in mind the importance of hospitals and health care to the state economy,” said Sam W. Cameron, MHA President/CEO. “This study shows that health care is much more to Mississippi than hospitals, clinics and doctors. The ripple effect of the health care sector throughout Mississippi’s economy is enormous. What’s good for Mississippi’s hospitals is good for Mississippi’s economy.”
In many Mississippi communities, hospitals are the largest or one of the largest employers. Twenty-six hospitals have more than 500 employees. (This number does not include contract employees.) Many of the people working in hospitals are highly skilled and well paid. (The average hospital employee salary in Mississippi is $42,193.) Throughout the recession, hospitals have served as a firm foundation for our state’s economy. Mississippi hospital employment remained stable even while manufacturing and other sectors shed jobs in record numbers.
An often-overlooked aspect of hospitals in economic development is the ability to attract and recruit big business based on the availability of quality health care. Company surveys reveal that managers often look at health care as an important issue in locating facilities. The existence of a strong health care network can lower health care costs for firms and their employees and provide value-added services for firms such as occupational health. Also, retirees and workers are more likely to choose a location that has access to quality health care.
Mississippi hospitals directly provide over $3.2 billion in salaries and benefits and generate another $2.1 billion annually in income through other jobs. Mississippi’s health care sector is also generating more new jobs faster than the national average. According to the Bureau of Labor, 1 of 4 new jobs in our current economy are related to health care. The health care sector is not only the nation's top job generator, but it's also one of the few major industries producing new jobs at all.
Critical Care Graphic
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