NJHA Report Shows $31.4 Billion Direct Benefit to State Economy
New Jersey hospitals strengthen state and local economies with nearly 160,000 healthcare jobs and $31.4 billion in direct economic benefits.
The total infusion to the New Jersey economy swells to $70 billion and 357,000 jobs as hospitals purchase goods and services from other industries and support businesses both large and small.
Those are the findings from the 2024 Economic Impact Report from the New Jersey Hospital Association, based on information from 2022 cost reports from 71 acute care hospitals.
“As healthcare providers, our hospitals deliver high quality healthcare on more than 18 million occasions annually,” said NJHA President and CEO Cathy Bennett. “As employers, they’re providers of opportunity for their 158,800 employees. Hospitals’ economic impact ripples all across New Jersey through support of other businesses, taxes and contributions to local communities.”
Hospitals’ broader impact is illustrated by multipliers developed by the U.S. Bureau of Economic Analysis’ Regional Input–Output Modeling System. Each hospital job supports an additional 1.25 jobs in other parts of the economy – so 158,800 healthcare jobs become a total jobs impact of around 347,000. And, each dollar spent by a hospital results in a total of $2.24 in overall economic output, accounting for $70 billion in economic activity.
Additional findings from this year’s report include:
- N.J. hospitals supported other businesses with $5.4 billion in purchased services.
- Hospitals paid $11.3 billion in employee salaries.
- Hospital employees added $624 million in income taxes to state coffers.
The full report, along with details by hospital, county, legislative district and other breakdowns, can be found at /resources/economic-impact-report/.
