Arizona Hospitals Mean...
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Hospital Specific Economic Impact Videos
New report highlights key role of Arizona hospitals in driving economy
Statewide, hospitals account for nearly $24 billion economic impact, 177,000 jobs
(PHOENIX) – Arizona hospitals play an outsized role in driving the statewide and local economy, according to the results of an independent economic-impact study released today.
That report, prepared by Rounds Consulting Group, Inc., found that Arizona hospitals are responsible for nearly 177,000 full-time jobs. This figure credits Arizona hospitals with directly creating more than 87,000 jobs and indirectly creating an additional 89,000 jobs, which includes organizations and individuals that provide services or products to the hospitals themselves.
Arizona hospitals total nearly $24 billion worth of direct and indirect economic impact.
According to Jim Rounds, President of Rounds Consulting Group: “Hospitals represent a critical driver of the Arizona economy, helping directly and indirectly generate 177,000 jobs and $24 billion in economic impact. Just as critical is the economic benefit created by these institutions in local communities, where the hospital is often one of the largest area employers.”
Additionally, a strong healthcare system and access to quality hospitals are essential to Arizona’s tourism market and directly tied to the state’s ability to recruit and retain non-healthcare-related employers and economic investment.
“This report makes clear that Arizona hospitals are critical not only to the health of Arizona citizens, but also to the overall health of our state and local economy,” said Greg Vigdor, President and CEO of the Arizona Hospital and Healthcare Association (AzHHA). “Healthcare is the largest single industry in Arizona and one of the few sectors that continued to grow through the Great Recession. Now that the economy is back on stable footing, hospitals are helping lead the recovery and creating thousands of quality jobs and billions of dollars in economic impact.”
Of note, Arizona hospitals operate at the 2nd-lowest per-capita cost of any state in the nation, with per-capita expenses 24 percent lower than the national average.
Economic Impact of Licensed Hospitals in Arizona
April 25, 2017
Hospitals and healthcare facilities are critical components of the Arizona economy. In urban areas, hospitals and other healthcare and bioscience operations have resulted in considerable job creation and economic and fiscal benefits. It is sometimes forgotten these facilities are just as important in rural parts of the state.
Healthcare access is essential in the development of tourism opportunities, especially those related to the retirement and second-home markets that represent disproportionate percentages of the rural economies in Arizona. Access to quality healthcare is also tied directly to a community’s ability to attract non-healthcare related businesses and economic investment.
To provide perspective regarding the extent to which healthcare and hospital activities impact the Arizona economy, an economic model was created by Rounds Consulting Group, Inc. for use by the Arizona Hospital and Healthcare Association (AZHHA) . The analysis, developed for general use but taking into account individual hospital inputs, provides a close approximation of the economic and fiscal benefits related to each hospital facility’s operations.
Individual hospital employment (i.e. direct impacts) and wages are examined to estimate multiplier benefits (i.e. indirect and induced impacts). This technique captures how direct hospital activities also generate business activity at supply companies, as well as the activity related to employees spending their paychecks in the local economy.