Story Created:
Aug 11, 2011 at 4:01 PM EDT
Story Updated:
Aug 11, 2011 at 5:09 PM EDT
ONEIDA COUNTY, N.Y. - The three hospitals in Oneida County contribute a combined total of more than $1,043,000,000 to the area economy per year, according to an economic impact analysis that projects the ripple effect of industry spending.
The Faxton St. Luke’s Healthcare (FSLH) system contributes $562 million to the local economy, St. Elizabeth Medical Center (SEMC) adds $346 million and Rome Memorial Hospital (RMH) contributes $135 million.
As some of the largest employers in the Utica/Rome area, the hospitals also support 5,380 full-time equivalent positions in total, which fund more than $21 million in state and local taxes.
“As major employers and purchasers of goods and services, our hospitals have a significant impact on the local economy,” said Rome Memorial Hospital’s Vice President/Chief Financial Officer Nicholas Mayhew. “Jobs are the lifeblood of a community. Each paycheck pulses through the economy, supporting businesses as dollars are spent on housing, groceries and other goods and services. Jobs fuel more jobs.”
Construction at the three organizations is also having a positive impact on the local economy. Building projects such as the Rome Memorial Diagnostic Center, the renovation of St. Luke’s Home to improve long-term care services and the addition of outpatient services at St. Elizabeth Medical Arts will generate local jobs and revenue and result in improved health care delivery for the community. These projects alone pour millions of dollars into the economy through construction costs and equipment purchases.
The hospitals treat approximately 115,000 people in their Emergency Departments and Urgent Care and deliver more than 2,750 babies annually. More than 34,700 infants, children, adults and seniors are hospitalized annually and there are also thousands of outpatient visits per year for diagnostic testing and treatment.
The economic impact study is based on U.S. Department of Commerce Bureau of Economic Analysis models that project the “multiplier effect” of industry spending on local economies. The primary findings of the analysis, based upon 2008 hospital data include:
The Hospitals as Employers
• In 2008, FSLH employed approximately 2,800 full-time equivalents (FTEs), SEMC employed approximately 1,770 FTEs and Rome employed approximately 810 FTEs.
• The hospitals’ total payroll and benefits was more than $317 million. Dollars earned by health care employees are spent on groceries, clothing, mortgage payments, rent, etc., generating approximately $583 million in total economic activity for the local economy.
Hospitals’ Purchasing
• Combined, SEMC, RMH and FSLH spend about $212 million per year on the goods and services they need to provide health care – for example, medical supplies, electricity for their buildings, and food for patients. Funds spent to buy goods and services flow from the hospital to vendors and businesses and then ripple throughout the economy for a total direct and indirect impact of $407 million.
Health Care Employees’ Impact on State and Local Tax Collections
• Hospital employees and those jobs supported indirectly by the hospitals paid $17.7 million in state income taxes in 2008.
• The three hospitals’ employees and those jobs supported indirectly by the hospital paid $13.3 million local sales tax and $12.4 million in state sales tax.
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