2017 Economic Impact Report (Statewide)


Explore how New Jersey’s hospitals contribute to the state, county and local economies.

New Jersey hospitals serve more than 15 million people annually, but their contributions extend far beyond the healthcare services they provide to their patients and their communities. Hospitals also are economic strongholds that bring jobs, income taxes and spending that support local and state economies.

In 2016, N.J. hospitals delivered:

  • $23.4 billion in total expenditures
  • $3.3 billion in purchased services
  • Nearly 144,000 jobs including 120,000 full-time equivalents
  • $9 billion in employee salaries
  • More than $496 million in state income taxes paid by employees
  • More than $622 million in charity care services.
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Statewide
ANNUAL CONTRIBUTIONS TO THE LOCAL AND STATE ECONOMY
Total Expenditures: $23.4 billion
  • Over 120,000 full-time equivalent jobs, including:
Nursing:
32,194
Therapy:
4,305
Radiology:
6,594
Pharmacy:
2,601
Pathology and Laboratory:
4,792
Dietary/Housekeeping/Maintenance:
10,168
Total Employee Payroll:
$9 billion
NJ Income Taxes Paid by Employees:
$496 million
  • Purchased Services of $3.3 billion, including:
Contracted Labor: $1.6 billion
Pharmaceutical Drugs: $1.4 billion
Dietary/Laundry/Housekeeping Supplies: $129 million
Building Supplies: $20 million
Utilities: $240 million including:
$158 million in Electric
$42 million in Oil & Gas
$40 million in Water/Sewage/Disposal
ANNUAL CONTRIBUTIONS AS A HEALTHCARE SAFETY NET
  • Hospitals also give back to the community by serving as the primary source of medical services for the state's 705,000 uninsured, thus serving as the healthcare safety net for the most needy.
  • In 2016, uninsured patients presented at Statewide 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.
ANNUAL
TAXES
SFY 2018 CHARITY CARE
SUBSIDY SHORTFALL

Statewide hospitals pay nearly $159 million annually in taxes including:
  • 0.53 Percent Assessment: $131.5 million
  • Adjusted Admissions Assessment: $17.4 million
  • Newborn Screening Fees: $9.6 million
  • Other assessments such as New Jersey Poison Information & Education System (NJPIES) and Maternal and Child Health Consortium Assessment
  • In addition, hospitals support their local municipalities through voluntary, negotiated payments and in-kind contributions.