Economic Impact Report (Statewide)
Explore how New Jersey’s hospitals contribute to the state, county and local economies.
New Jersey hospitals are a vital public resource. In 2020, the state’s hospitals successfully treated more than 105,000 COVID patients among the 14 million patients served annually. Beyond patient care, New Jersey’s hospitals also are economic strongholds, providing jobs, income taxes and spending that support their communities through good times and bad.
New Jersey hospitals directly contributed $27.8 billion to the state’s economy during the 2020 pandemic year. But these anchor institutions drive much larger total impacts both to their local communities and to other N.J. companies through spending that supports their operations, employees, patients and visitors. The total impact to the state’s economy driven by N.J. hospitals reached $62 billion in 2020.1
That total includes:
- $3.9 billion in purchased services
- Nearly 119,000 full-time equivalent jobs and total direct employment of over 154,000 full- and part-time positions; in addition to these direct jobs, the hospital industry supports approximately 200,000 jobs across other sectors, for a total employment impact of 355,000 jobs statewide1
- Over $10 billion in total employee salaries
- Over $500 million in state income taxes paid by hospital employees
- $672 million in charity care services to New Jersey’s working poor and other uninsured residents.
The search function below provides detail by individual hospital, county, legislative and congressional district and more.
Total Economic Impact: $27.8 billion
-
Nearly 119,000
full-time equivalent jobs, including:
Pathology and Laboratory:
4,615
Dietary/Housekeeping/Maintenance:
10,321
Total Employee Payroll:
$10.2 billion
NJ Income Taxes Paid by Employees:
$562 million
-
Purchased Services of
$3.9 billion, including:
Contracted Labor: $1.7 billion
Pharmaceutical Drugs: $1.8 billion
Dietary/Laundry/Housekeeping Supplies: $154 million
Building Supplies: $30.7 million
Utilities: $254 million
including:
$54 million
in Water/Sewage/Disposal
Effect on Jobs in Overall Economy1
355,000
Effect on Overall Economic Output1
$62 billion
- Hospitals also give back to the community by serving as the primary source of medical services for the state's
692,000
uninsured, thus serving as the healthcare safety net for the most needy.
- In
2020, uninsured patients presented at
Statewide hospitals
on
1.2 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.
Statewide hospitals pay
nearly $176 million
annually in taxes including:
- 0.53 Percent Assessment:
$145.1 million
- Adjusted Admissions Assessment:
$15.9 million
- Newborn Screening Fees:
$14.7 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.
1 The goods and services hospitals purchase from other businesses create additional economic value for the community, as estimated through the use of "multipliers" by which spending in one sector affects other sectors. For employment, these ripple effects mean that each hospital job results in a total of 2.3 jobs in the overall economy as hospital employees use their wages to purchase goods and services, which in turn creates income and jobs for other businesses. Similarly, each dollar spent by a hospital results in a total of $2.24 in overall economic output. New Jersey hospitals thus support approximately 355,000 total jobs and over $62 billion in economic activity statewide.
Source for multipliers: American Hospital Association, "Hospitals Remain Economic Pillars in Their Communities," Feb. 2022; analysis based on multipliers from the U.S. Bureau of Economic Analysis’ Regional Input–Output Modeling System (BEA RIMS-II).
|
|
