The Mississippi Hospital Association recently commissioned a comprehensive study of the economic impact of Mississippi hospitals on our state’s economy in 2016. The numbers show that our state’s hospitals have a staggering impact. Study findings show hospitals alone generate:
- $15 billion total impact on the state economy
- 55,370 full time job equivalent employees. Hospitals also created an additional 50,430 jobs outside of their facilities.
- Payrolls and benefits totaled $3.6 billion in 2016 (with a total economic impact of $6.8 billion)
- Average hospital employee salary of $46,258 (compared to Mississippi average of $36,975)
These numbers tally only a fraction of the economic impact of the 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. In total, 105,800 jobs are created by hospitals alone in Mississippi due to hospital employment, operational activities, and construction activities.
This statewide economic impact report was 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 are encouraged to keep in mind the importance of hospitals and health systems to the state economy," said Timothy H. Moore, MHA President/CEO. "This impact report shows that health care is much more to Mississippi than hospitals, clinics, and doctors. The ripple effect created by the health care sector stimulates every aspect of Mississippi’s economy."
In many Mississippi communities, hospitals are the largest or one of the largest employers. Many of the people working in hospitals are highly skilled and well paid. (The average hospital employee salary in Mississippi is $46,258, as compared to the average employee salary of $36,975.)
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 $3.6 billion in salaries and benefits and generate another $3.3 billion annually in salaries through other jobs.
Further materials available to download:
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Download MHA logo for print: Download 2mhalogofinal_copy.jpg
Download pic of Tim Moore: View this photo (Download Hi-Res)