Illinois hospitals generate $108 billion in economic impact, new report finds

More than 200 hospitals and nearly 40 health systems in the state of Illinois generate a total impact of $108.1 billion annually on the state’s economy, according to a new report from Illinois Health. and Hospital Association.

The report, Illinois Hospitals and Health Systems: Crucial for Community Health and Economic Stability, found that one in 10 jobs in Illinois is in health care, with the state’s hospitals and health systems employing approximately 298,000 people and generating about 493,000 direct and indirect jobs, IHA said.

“Illinois hospitals and health systems provide needed health care around the clock, they strengthen local economies and employ local residents, and they lead and fund initiatives to improve individual and community health,” IHA President and CEO AJ Wilhelmi said in a statement. “Illinois hospitals are crucial to communities – a role we have seen repeatedly amplified by the pandemic and the unparalleled care they have provided.”

For every hospital job in Illinois, 1.4 jobs are created in other sectors, according to the report, and for every dollar spent by hospitals and health systems, an additional $1.40 is generated in national economies. and local.

“Hospitals provide well-paying jobs and substantial benefits to a wide range of workers,” the IHA wrote. “They stimulate additional economic activity by spending on goods, services and capital improvements.”

Hospitals are currently promoting wellness from the ground up, supporting communities through diabetes and asthma initiatives, tackling food insecurity and housing, and deploying community health workers to connect residents to health services, the IHA said.

The estimates of economic benefits for Illinois hospitals were based on the Regional Input-Output Modeling System II developed by the US Bureau of Economic Analysis, the IHA wrote. Final demand multipliers, obtained from BEA RIMS-II, were applied to Medicare Cost Report 2020/2021 data on jobs and hospital spending to obtain the jobs “ripple” effect. and spending across the economy.

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