finally according to a recent report by william b beyers ph.d a university of washington professor hospitals produce a significant indirect effect on the washington state economy every direct dollar of spending by hospitals creates $2.40 in business activity resulting in $17.5 billion in economic activity for the state in 2001 washington hospitals were responsible for creating an estimated 204,000 jobs slightly more than two additional jobs for every job in hospitals hospitals did all this in 2001 while caring for 580,000 patients in the hospital and handling 9.2 million outpatient visits including visits to the emergency room in addition in 2001 washington s urban hospitals contributed more than $79 million to fund community services such as health screenings health education classes and support groups research education of health professionals and in-kind donations rural hospitals most of them created though locally governed hospital districts also contribute greatly to their commu
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our data also exclude other health care professionals working in the community and not employed by a hospital such as physical therapists occupational therapists and pharmacists many of these other professionals rely on hospitals to refer patients for services and in turn employ additional workers in their offices in addition hospitals often provide a number of other health services twenty-four washington hospitals operate home health agencies and 37 washington hospitals operate skilled nursing facilities.11 these agencies and facilities employ additional workers many of whom are not reflected in our employment data above some hospitals own freestanding community clinics and these employees are not counted in our data since these additional employees are often not reported in the washington state hospital data sets they are not included hospitals as purchasers hospitals not only provide jobs for employees they also purchase goods and services that help sustain other businesses in their
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economic impact of hospitals in washington state 2001 executive summary william b beyers ph.d professor department of geography university of washington hospitals are one of the largest industries in the washington economy with employment rivaling aerospace and exceeding computer services two of the key industries popularly regarded as fundamental to the success of our state economy in the year 2001 hospitals employed a full time equivalent of 65,000 people in washington state they were located in 35 of the state s 39 counties the hospital industry in washington state had expenditures of $7.3 billion in the year 2001 of which $3.8 billion was employee compensation to the people working in this sector of our economy through multiplier effects associated with these expenditures the total level of business activity in the washington economy related to hospitals was $17.5 billion in the year 2001 for every direct dollar of spending by hospitals about $2.40 in business activity was created
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case study lincoln county lincoln hospital davenport odessa memorial healthcare center odessa lincoln county has a population of slightly more than 10,000 people about 4,800 of them work in the county the major industries are agriculture and government more than half of the population lives in unincorporated areas the two largest cities are davenport the county seat with a population of about 1,700 people and odessa with about 950 people.21 these cities are also the locations for the two hospitals in the county both operated by public hospital districts the hospitals in lincoln county provide health care to residents throughout the county as well as to people in neighboring counties odessa memorial healthcare center s campus includes a hospital a nursing home an assisted living facility a clinic and an ambulance service lincoln hospital s health system in davenport includes a clinic a nursing home an assisted living facility and an ambulance service the hospital also operates a remote
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when the hospital gets a cold the whole region gets sick spokane county has a population of 425,000 nearly half of them live in the city of spokane the county seat the newly incorporated city of spokane valley has a population of 82,000 the next largest city in the county is cheney with a population of about 9,300 followed by the cities of airway heights liberty lake medical lake and deer park each with populations of 3,000 to 4,500 people about half the population lives in unincorporated areas the total labor force is around 213,000 the top industries are government retail trade and health services.24 sacred heart medical center ranks as the third largest employer behind fairchild air force base and the public school district empire health services ranks as the sixth largest employer in the county behind city and state governments 25 in spokane hospitals are an important part of a large health care industry overall health care accounts for about 20 to 30 percent of the gross domes
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case study mason county mason general hospital shelton mason county has a population of about 49,000 people shelton the county seat and the only incorporated city in the county has close to 8,500 residents shelton is also the location of the only hospital in the county mason general hospital the hospital which is operated by a public hospital district also runs a pediatric clinic in shelton and a full-service clinic in belfair located in the northern part of the county mason county has a labor force of about 20,000 people the largest industries in the county are government services retail trade and manufacturing primarily lumber and wood products 31 with more than 300 284 full-time-equivalent employees mason general hospital is among the top five employers in the county in addition these hospital jobs create another 242 jobs in the county the hospital also purchases many goods and services from local businesses such as the hardware store and furniture company money that goes directly
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conclusion washington state needs financially healthy hospitals to preserve jobs for its health care workers and other employees to help sustain an important economic contribution to the state and the community and foremost to ensure washington residents get the health care they need hospitals face a number of challenges common to all businesses such as maintaining a healthy bottom line reducing administrative and regulatory barriers and assuring a quality work force we need the help of washington s elected leaders to keep our hospitals financially healthy and continue to provide jobs to washingtonians hospitals in washington need to maintain a healthy financial margin in order to remain viable while most of the hospitals in washington are not-for-profit they still need to generate an operating margin of four to five percent this margin is used to meet their capital needs no business can continue to prosper if it is liquidating its capital in order to survive with almost half their rev
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county king continued hospital evergreen healthcare fairfax hospital group health central hospital group health eastside hospital harborview medical center highline community hospital kindred hospital seattle northwest hospital overlake hospital medical center regional hospital for respiratory complex care st francis hospital seattle cancer care alliance snoqualmie valley hospital swedish medical center providence swedish medical center first hill/ballard university of washington medical center valley medical center virginia mason medical center west seattle psychiatric hospital harrison memorial hospital kittitas valley community hospital klickitat valley health services skyline hospital morton general hospital providence centralia hospital lincoln hospital odessa memorial healthcare center mason general hospital mid-valley hospital north valley hospital okanogan douglas county hospital ocean beach hospital willapa harbor hospital newport community hospital good samaritan com
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appendix c description of the beyers methodology estimating the economic impacts of hospitals on the statewide economy and on county economies in washington state required a variety of data sources and an input-output model the model used as the benchmark for these estimates is the 1987 washington input-output model.43 this model is the fifth of this type developed for washington state with the first model developed for 1963.44 research has found the inter-industry structure of the washington economy to be relatively stable even though the composition of the outputs has changed dramatically over time.45 thus while it has been more than 15 years since the estimation of the last input-output model for the washington economy its coefficient structure is likely to be a good basis for estimating impacts of the hospital sector input-output models are driven by final demands which are the value of output in a given sector the model starts with the national hospital sector direct requireme
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16 washington state hospital association health information program analysis of washington state department of health hospital 2001 fiscal year-end reports june august 2003 william b beyers ph.d the economic impact of hospitals in washington state in the year 2001 special report prepared for the washington state hospital association july 2003 washington state hospital association health information program analysis of washington state department of health inpatient data from the comprehensive hospital abstract and reporting system chars june august 2003 washington state hospital association health information program analysis of washington state department of health hospital 2001 fiscal year-end reports june august 2003 charges are reduced by the average charges-to-payment ratio for all patients washington state hospital association health information program analysis of washington state department of health hospital 2001 fiscal year-end reports june august 2003 washington st
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for more information please contact claudia sanders vice president policy development wsha 206 216-2508 claudias@wsha.org for additional copies of this report please contact johänna bradford executive assistant wsha 206 216-2510 johannab@wsha.org october 2003 washington state hospital association 300 elliott avenue west suite 300 seattle wa 98119-4118 www.wsha.org
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