N.J. hospitals are 21B economic engine, report says

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New Jersey hospitals contributed almost $21 billion to the state’s economy in 2013, according to the 2014 N.J. Hospitals Economic Impact Report released Wednesday by the New Jersey Hospital Association.The report said New Jersey hospitals supplied 144,000 full- and part-time jobs in 2013, which saw increases in areas such as goods and services purchased from other businesses and state income taxes paid by employees.

“Even as New Jersey hospitals are shouldering significant cuts in reimbursement under the Affordable Care Act, they continue to be a stable force in New Jersey’s economy by adding jobs while still giving back to their communities and providing $1.3 billion in charity care for our uninsured,” said NJHA President Betsy Ryan.

The report uses data from New Jersey’s 72 acute care hospitals.

Highlights include:

• New Jersey hospitals purchased $2.8 billion in goods and services from other companies last year, an increase of $100 million over 2012. Key areas include contracted labor ($1.4 billion), pharmaceuticals ($962 million), utilities ($262 million), dietary, laundry and housekeeping ($138 million) and building supplies ($19 million).
• New Jersey hospitals paid more than $8.3 billion in employee salaries last year, up from $7.9 billion in 2012.
• Employees at New Jersey hospitals paid approximately $457 million in state income taxes last year, compared with $435 million in 2012.

“New Jersey hospitals help provide economic stability to the state through employment and revenue. And their economic investments in their facilities help expand infrastructure, purchase new technology and maintain a highly skilled workforce,” said Sean Hopkins, NJHA senior vice president of health economics.

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