Faxton St. Luke’s Healthcare (FSLH) and St. Elizabeth Medical Center (SEMC) contribute a total of $880 million to the local economy, according to an economic impact analysis that projects the ripple effect of industry spending. As two of the largest employers in Oneida County, the hospitals also support 4,600 full-time equivalent positions, which fund more than $15 million in state and local taxes.


"The hospitals are critical to the economic viability of our community," said Scott H. Perra, FACHE, president/CEO of FSLH. "In addition to caring for and keeping our community members healthy, we support the economy through the people we employ, the impact of our spending with local merchants and the effect of hospital employees' spending and the taxes they pay. Community hospitals like ours are critical to New York's quality of life and to keeping communities healthy and vibrant."


“St. Elizabeth Medical Center, as well as hospitals throughout New York State and across the nation, is faced with economic challenges due to reductions in Medicare and Medicaid reimbursement,” said Richard H. Ketcham, president/CEO of SEMC. “Even with our financial challenges, we are committed to excellence in healthcare and education. We provide quality care to all we serve with compassion and respect.”

Construction at both facilities is also having a positive impact on the local economy. Building projects such as the renovation of FSLH’s St. Luke’s Home to provide coordinated inpatient rehabilitation, long-term and continuing care services generated local jobs and revenue and resulted in improved health care delivery for the community. On this project alone, $14 million was spent on construction costs and more than $1 million on equipment. This project, funded through Phase 20 of the Health Care Efficiency and Affordability Law of New York State (HEAL NY) grant and the Federal-State Reform Partnership (F-SHRP), opened in February. SEMC spent more than $1.5 million to relocate its radiology services to St. Elizabeth Medical Arts on Middle Settlement Road, with an additional $1.2 million to upgrade equipment. SEMC also spent $8 million on the new co-generation project and approximately $3.2 million was spent on upgrading their clinical computer system.

In 2010, the hospitals saw approximately 95,000 patient visits in their Emergency Departments (including FSLH’s Urgent Care) and FSLH delivers more than 2,100 babies annually. Combined, nearly 29,000 infants, children, adults and seniors are hospitalized at both facilities 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 2010 hospital data include:


As employers, the hospitals:

·        In 2010, employed approximately 4,600 full-time equivalents (FTEs). 

·        In 2010, the hospitals’ total payroll and benefits were more than $239 million. Dollars earned by employees are spent on groceries, clothing, mortgage payments, rent, etc., generating approximately $480 million in total economic activity for the local economy.

·        In 2010, FSLH and SEMC both operated their Schools of Radiography and SEMC operates three additional schools of education: the College of Nursing, the Family Medicine Residency Program and a GYN Surgical Fellowship.



·        Combined, the hospitals spend about $200 million per year on goods and services needed to provide health care. For example: medical supplies, electricity for its 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 $334 million.


Healthcare Capital Spending

·        In 2010, the two facilities spent more than $30 million on buildings and equipment.


Impact on State and Local Tax Collections

·        Hospital employees and those jobs supported indirectly by the hospital paid $15.3 million in state and local income taxes in 2010.

·        Hospital employees and those jobs supported indirectly by the hospital paid $12 million in local sales tax and $10.1 million in state sales tax.