School of Medicine publishes report on ‘Impact of Hospitals on the Nevada Economy’

A newly released University of Nevada School of Medicine report on “The Impact of Hospitals on the Nevada Economy” indicates the importance of hospitals to their individual communities extends far beyond their ability to provide healthcare.

“This report provides estimates of the direct and indirect impact of hospital operating activities and hospital construction on payroll and employment in Nevada,” said lead author John Packham, PhD., of the School’s Center for Education and Health Services Outreach. “The analysis presented in this report reveals that Nevada’s hospitals have a substantial impact on the state’s economy – a contribution typically overlooked in public policy discussions of health care cost containment, access to care and community benefits.”

Hospitals are not only a major employer and source of income in their own right, they play a critical role in local and regional economic development by generating employment and income in a wide range of other businesses and contributing to the tax base at the state and local levels, the report reveals.

Utilizing data from 2006 (the most current data available), the state’s 32 community hospitals generated $1.33 billion in payroll and an additional $573 million in payroll in other Nevada businesses through normal operating activities. That same year, 20,617 people were employed by the state’s community hospitals which also generated an additional 14,421 jobs in other Nevada businesses through normal operating activities. In rural areas, hospitals are typically the first or second largest employer behind the county school district and represent 10 to 15 percent of the local workforce.

The hospital sector has made a substantial economic impact through hospital construction and capital improvements. In 2006, 19 community hospitals spent $217 million on construction and major facility expansions with Clark County leading the way with more than $170 million in new spending. Washoe County’s three principal hospitals spent $30.8 million while five rural facilities spent nearly $13 million.

The report concludes that a strong hospital industry provides essential healthcare services, improves quality of life in a myriad of direct and indirect ways and helps Nevada attract and retain businesses and jobs.

The report was co-authored by Tabor Griswold, MS, also at the University of Nevada School of Medicine, and Tom Harris, PhD, and Shannon Price, MS, at the University of Nevada, Reno.

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