business
Illinois hospitals generate $75 billion in spending
NEWS IN BRIEF — Posted Oct. 11, 2010
Illinois hospitals directly or indirectly supported 426,700 jobs in 2009, according to a report issued Sept. 24 by the Illinois Hospital Assn. These institutions generated $75.1 billion in spending by purchasing supplies or paying staffers who in turn spent their paychecks on goods and services.
"By providing jobs for a wide range of health care workers and spurring more economic activity through their spending on goods, services and capital improvements, hospitals are a key cornerstone of the local and state economy," said IHA President Maryjane A. Wurth.
Researchers used the Regional Input-Output Modeling System II developed by the U.S. Dept. of Commerce's Bureau of Economic Analysis. Each job at a hospital lead to an additional 1.1 jobs in other industries. One dollar spent by a hospital led to an additional $1.40 in spending elsewhere in the economy.
Reports issued by other hospital and medical associations, which are used to argue against cuts to public insurance programs or support other items on the legislative agenda, also have documented the significant economic impact of the health care sector. The IHA report is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/10/11/bibf1011.htm.