New Jersey hospitals contributed $27.8 billion in direct economic activity in 2020. But — because hospital spending supports other industries, fuels job growth and creates business for other industries — the total amount to the state economy clocks in at $62 billion.

That’s according to the New Jersey Hospital Association‘s annual Economic Impact Report, released April 26. The most recent report reflects 2020 data, when the industry — and the state, nation and world — were struggling with the COVID-19 onslaught.

In 2019, hospitals’ direct economic impact was $26.1 billion.

“New Jersey’s hospitals have made their mark throughout the pandemic by saving more than 105,000 lives among seriously ill patients hospitalized with COVID-19. While the value of a life saved is immeasurable, we can quantify the economic impact of hospitals that touch our lives every day,” NJHA President and CEO Cathy Bennett said in a statement. “The direct economic impact of $27.8 billion reverberates throughout New Jersey to support other businesses, income and jobs – creating a multiplier effect of $62 billion in economic support across sectors and communities.”

According to the report, the $62 billion figure includes:

• $3.9 billion in purchased services from other businesses. About $1.8 billion of that was pharmaceutical drugs, the largest single item among hospitals’ purchased services; contracted labor was the next largest at $1.7 billion.
• Nearly 119,000 full-time equivalent jobs (nurses represent the largest share, with 33,576 full-time equivalents) and total direct employment of over 154,000 full- and part-time positions. In addition, the hospital industry supports approximately 200,000 jobs across other sectors, for a total employment impact of 355,000 jobs statewide.
• More than $10 billion in total employee salaries, generating more than $500 million in state income taxes.
• $672 million in charity care services to New Jersey’s uninsured residents.

The report is based on information from 2020 cost reports from 71 acute care hospitals filed with the N.J. Department of Health, along with other publicly available data sources. The hospital breakdowns can be found in the full report here.