Tallahassee, FL – Florida hospitals had an annual economic output contribution of $177.8 billion in 2021, and they directly employed more than 322,000 Floridians with a total payroll of more than $28 billion, according to a new report released today by economists at the University of Florida-IFAS.
“Florida has one of the nation’s most enviable and growing economies, and our hospitals are foundational economic pillars and economic engines,” said Mary Mayhew, president and CEO, Florida Hospital Association. “As Florida’s population continues to grow, the state’s future economic success is intertwined with sustaining a vibrant, financially strong, and sophisticated health care system ready to deliver high-quality modern health care services today and into the future.”
The report “Economic Contributions of Florida Hospitals and Affiliated Healthcare Businesses in 2021,” by Alan W. Hodges, Ph.D., and Christa D. Court, Ph.D., documents the immense economic contributions Florida’s hospitals have through their roles as health care providers, employers, and purchasers. The authors conclude that “Florida hospitals are stable and consistent employers across the state, and their contributions continue to grow.”
Hospitals create additional economic value for the community and state, with each hospital job supporting 1.73 additional jobs in the state and every $1 spent by a hospital supporting $1.25 in additional business activity.
Despite current financial and operational pressures, including workforce shortages and inflationary pressures, hospitals’ economic contributions increased since 2019. Value added or GDP contributions of Florida hospitals in 2021 were 7.9 percent higher than two years prior, adjusted for inflation.
“Documenting hospitals’ economic contributions is incredibly important to inform debates about public investment in and support for the health care infrastructure,” said Dr. Alan Hodges, Food & Resource Economics Department, University of Florida-IFAS. “The ripple effects of hospitals’ economic activity are felt throughout our entire economy. When a hospital closes or cuts back on services, those impacts are felt not just in diminished access to health care but in economic activity as well.”
“Our seniors, newly arriving retirees, and families want to have peace of mind that they have timely access to high-quality health care close to home,” said Mayhew. “This new economic impact report continues to reinforce the connection between Florida’s thriving economy and the role of Florida hospitals as economic drivers and a critical cornerstone for comprehensive health care services in their communities.”
See the full report and key takeaways on fha.org.