According to a report released by the Connecticut Hospital Association, hospitals contribute $12.2 billion annually to the state and local economies, about 6 percent of the gross state product.
“In addition to their traditional care-giving role, Connecticut hospitals keep communities”™ economies going,” said Jennifer Jackson, Connecticut Hospital Association president and CEO. “This serves as a magnet for other health care businesses and a stimulus for new businesses such as retail stores, banks, grocery stores and restaurants.”
According to the report, hospitals in Connecticut provide 70,000 jobs statewide. This generates roughly $6.5 billion in annual payroll and through the purchase of goods and services, approximately $4.6 billion annually in local economic activity.
“Hospitals make major contributions to both the economic health and quality of life of communities throughout Connecticut,” said Jackson. “Everyone knows that hospitals are always there when you need them, but few realize the tremendous contribution hospitals make to the state”™s economy and to the financial well-being of our local communities.”
The report finds that Connecticut”™s hospitals spend $7.1 billion each year on staff wages, purchasing medical supplies and food, and construction. The study goes on to declare that the ripple effect created by this capital is responsible for another $5.1 billion as it moves through the economy, generating additional jobs and spending.
“Strong and stable hospitals are critical to our quality of life and the state”™s economic health,” said Jackson. “However, Connecticut hospitals are in precarious financial condition due to years of chronic and significant under-reimbursement by the state. If they are to continue providing the level of care Connecticut residents have come to expect, hospitals must be paid what it costs to provide care to individuals enrolled in Medicaid and other government-funded health programs.”
From 2004 through 2006, the value of Connecticut hospitals”™ contributions to the state economy increased from $9.8 billion to $12.2 billion, a 24 percent increase.
