Connecticut”™s hospitals and health systems had a $28.9 billion impact on the state”™s economy in 2018, up from $27.7 billion the previous year, according to the latest data from the Connecticut Hospital Association.
The CHA”™s 2020 Economic Impact Report found that its member organizations spent $5.9 billion on goods and services ”“ including medical equipment and supplies, food, and electricity for buildings ”“ with an additional $5.7 billion created in “ripple effect” spending. In addition, the organizations employed roughly 106,000 people, which represented an $8 billion payroll; some 111,400 “ripple effect” jobs added another $7.7 billion.
Under capital improvements, the CHA estimated $814 million was spent on buildings and equipment, which created an additional $782 million in economic activity.
In December, the hospital association settled its longstanding lawsuit over the state”™s imposition of a user fee, or “hospital tax,” which the CHA said had unfairly cost its members billions of dollars since it went into effect in 2011. Under the settlement”™s terms, the state of Connecticut is able to abrogate legal claims that potentially exposed it to up to $4 billion in liability. At the same time, hospitals will have a more stable and predictable user fee schedule, with the agreement providing for a reduction in the user fee from $900 million to $820 million by fiscal year 2026.
The agreement also increases Medicaid hospital rates by about 2% per year, sets supplemental payments and provides one-time Medicaid payments this fiscal year.
“To remain vibrant and strong, Connecticut hospitals and health systems require support and collaboration from government and many other sectors,” the report states. “Working together, we can craft solutions that ensure the financial health of Connecticut”™s hospitals and health systems, providing high-quality, compassionate care when it”™s needed most.”
The CHA also released its 2020 Community Benefit Report, which found that, in 2018, the state”™s hospitals and health systems provided:
- $225 million in uncompensated care: Charity care/bad debt to provide services for those who cannot pay;
- $23 million in community services to improve the health of the community such as screenings, support groups, and educational programs;
- $17 million in donations to help support community organizations;
- $11 million in research and other programs to advance health care for patients and the community;
- $7 million in community programs and partnerships to create stronger, healthier communities; and
- $7 million in subsidized health services to provide care needed by the community.
“Our hospitals are vital economic anchors, providing the stability and growth that contributes greatly to the financial health of the state and the communities they serve,” CHA CEO Jennifer Jackson said. “Connecticut hospitals are working in our communities to help people with social needs, such as housing and food. Hospitals and health care systems, in collaboration with state government and other sectors, are working to build a healthier Connecticut.”
