Report: N.J. Hospitals Contribute $21 Billion to N.J. Economy

News provided by

New Jersey Hospital Association (NJHA)

Dec 10, 2014, 10:56 ET

PRINCETON, N.J., Dec. 10, 2014 /PRNewswire-USNewswire/ -- New Jersey hospitals continued to play key roles as strong contributors to New Jersey's economy and as healthcare safety nets by contributing almost $21 billion to the Garden State economy in 2013, according to the 2014 N.J. Hospitals Economic Impact Report released today by the New Jersey Hospital Association.

Report: N.J. Hospitals Contribute $21 Billion to N.J. Economy

Even as the healthcare landscape continues to change, New Jersey hospitals supplied 144,000 full- and part-time jobs in 2013. Hospital activity in area such as goods and services purchased from other businesses and state income taxes paid by employees also increased.

"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 and CEO Betsy Ryan.

The Economic Impact Report uses data gathered from 72 acute care hospitals in the Garden State and compiles their economic contributions statewide and across counties and individual hospitals. The 2014 edition uses data from year-end 2013. The full report is available at http://www.njha.com/2014economicimpactreport/.

Specific 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 over $8.3 billion in employee salaries last year, compared with $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's senior vice president of health economics.

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SOURCE New Jersey Hospital Association (NJHA)