economy

With $26.1 Billion in Economic Activity, Hospitals are Stalwarts for NJ Communities

New economic impact data shows New Jersey hospitals’ central roles in their communities – not just as providers of healthcare services, but as economic engines that provide jobs and support to other businesses. The grand tally: $26.1 billion in economic activity that ripples across the state, according to the 2021 Economic Impact Report from the New Jersey Hospital Association.

KEY FINDINGS FROM THIS YEAR’S REPORT, BASED ON 2019 DATA, INCLUDE: 

  • New Jersey hospitals recorded $26.1 billion in total expenditures in 2019, an increase of $1.4 billion from the 2018 total of $24.7 billion. 
  • Hospitals supported other businesses with $3.8 billion in purchased services including $1.7 billion in contracted labor; $1.7 billion in pharmaceutical drugs; $156 million in dietary, laundry and housekeeping supplies; $41.5 million in building supplies; and $251 million in utilities. 
  • New Jersey hospitals provided 120,000 full-time-equivalent positions and more than 154,000 total full- and part-time jobs. Nursing represents the largest number of hospital jobs, at 33,266. 
  • Hospitals pay more than $9.7 billion in employee salaries, which generates $500 million in income taxes for the state’s coffers. 

Hospitals also give back to the community by serving as the primary source of medical services for the state’s 692,000 residents without health insurance, serving as the healthcare safety net for the most needy. In 2019, uninsured patients presented at New Jersey hospitals on 1.4 million occasions. New Jersey’s general hospitals are predominantly not-for-profit entities – any excess revenue over expenses is returned to the community in the form of new medical technology, expanded hospital services, maintenance and expansion of physical infrastructure and the enhanced ability to hire and maintain skilled workforce. 

Healthcare is the only industry that has added jobs in the state every year from 1990 through 2019 while increasing its share of jobholding from 7.5% in 1990 to 12% in 2019. According to the New Jersey Department of Labor, the outlook for healthcare employment in the Garden State is bright. From 2018 through 2028, it is projected that 64,860 jobs will be added, an annual increase of 1.2%. Healthcare cluster employment is comprised of three industry groups: ambulatory healthcare services (49%), hospitals (32%) and nursing and residential care facilities (19%). 

NJHA’s Economic Impact report also provides details by county and for individual hospitals. You can find it online at The New Jersey Hospital Association (www.njha.com/resources/economic-impact-report).

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