Posted on April 26, 2017
Nearly 228,000 in Hospitals Alone
LANSING, Mich. — A new report from the Partnership for Michigan’s Health shows that healthcare directly employed more than 588,000 Michigan residents in 2015, making healthcare the largest private-sector employer in the state. The 2017 edition of The Economic Impact of Healthcare in Michigan indicates that hospitals alone employ nearly 228,000 individuals, which is almost 40 percent of direct healthcare jobs in the state. Direct healthcare workers in Michigan earned more than $35 billion a year in wages, salaries and benefits.
Because direct healthcare employment results in additional jobs that are indirectly related to or induced by healthcare, the state’s healthcare sector supports about 341,000 additional people who earn nearly $15 billion a year in wages, salaries and benefits. Together with their employers, those working in the healthcare sector contribute almost $15 billion a year in local, state and federal taxes. These taxes include Social Security, income, motor vehicle, sales, property, corporate and more.
While the state’s hospitals significantly support the Michigan economy, they also work to ensure their patients get affordable care. A survey from the American Hospital Association, also using 2015 data, shows that the cost of an inpatient admission in a Michigan hospital is 11.7 percent lower than the national average for a comparable admission and 10.9 percent lower than the average cost in hospitals in the other Great Lakes states (Illinois, Indiana, Ohio, Pennsylvania and Wisconsin).
“Hospitals provide jobs that result in billions of dollars in wages earned and taxes paid, significantly boosting the state’s economy,” said Michigan Health & Hospital Association CEO Brian Peters. “An example of hospitals’ economic impact is shown in a recent issue of Crain’s Detroit Business, which listed nine Michigan health systems among the 26 largest employers in the state, based on the number of full-time employees in January 2017. Healthcare has continuously been an economic engine for the state, individual regions and local communities. At the same time, Michigan hospitals have begun to shift their focus to ensuring every individual in their communities have opportunities to live healthy lives inside and outside of the healthcare setting.”
This 12th edition of The Economic Impact of Healthcare in Michigan uses 2015 data (most recent available) and was compiled using IMPLAN® V.3.1 software to quantify healthcare’s significant economic impact in the state. The data represents healthcare direct, indirect1 and induced2 jobs; taxes paid by those workers and their employers; and salaries, wages and benefits earned. The report is an online, interactive tool that allows users to examine these economic impacts from a statewide perspective and by region, county or, for the first time in this edition, by congressional district. It is available at www.economicimpact.org.
The Partnership for Michigan’s Health consists of the Michigan Health & Hospital Association, the Michigan State Medical Society and the Michigan Osteopathic Association, all based in the greater Lansing area.
1 Indirect jobs are those created to support a larger employer or industry (for example, a laundry that cleans linens for a hospital).
2 Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers).
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