Economic Impact Report (Statewide)
Explore how New Jersey’s hospitals contribute to the state, county and local economies.
New Jersey hospitals are the backbone of the community. Beyond their role protecting the health of New Jerseyans, hospitals strengthen our state with employment and other economic opportunity.
Hospitals’ essential work supports state and local economies with nearly 160,000 jobs and $31.4 billion in economic benefits, while caring for patients on more than 18 million occasions annually, based on 2022 hospital cost report data.
Nationwide, hospitals are confronting the burden of rising expenses, labor shortages, government underfunding and sicker patients. Despite these challenging times, New Jersey hospitals continue to support the health of their communities through essential services, charity care, community benefits and as vital sources of jobs, income taxes and spending that help stabilize their communities and support businesses across the state.
By the Numbers:
- New Jersey hospitals directly contributed $31.4 billion to the state’s economy during 2022.
- Hospitals create economic opportunity by providing 158,600 full- and part-time jobs.
- Hospital employees earn $11.3 billion in salaries, creating spending power statewide.
- Other businesses in New Jersey and beyond benefit from $5.4 billion in commerce with hospitals.
Use the search below to find customizable reports of hospitals’ contributions by facility, county, legislative district and more.
Total Economic Impact: $31.4 billion
-
Total direct employment of 158,600 full- and part-time positions;
121,000 full-time equivalent jobs, including:
Pathology and Laboratory:
3,919
Dietary/Housekeeping/Maintenance:
9,811
Total Employee Payroll:
$11.3 billion
NJ Income Taxes Paid by Employees:
$624 million
-
Purchased Services of
$5.4 billion, including:
Contracted Labor: $2.8 billion
Pharmaceutical Drugs: $2.1 billion
Dietary/Laundry/Housekeeping Supplies: $174 million
Building Supplies: $42.9 million
Utilities: $278 million
including:
$53 million
in Water/Sewage/Disposal
Effect on Jobs in Overall Economy1
357,000
Effect on Overall Economic Output1
$70 billion
- Hospitals also give back to the community by serving as the primary source of medical services for the state's
627,000
uninsured, thus serving as the healthcare safety net for the most needy.
- In
2022, uninsured patients presented at
New Jersey Hospitals
on
1.3 million
occasions.
- New Jersey's general hospitals are predominantly not-for-profit entities — any excess revenue over expenses is returned to the community in the form of new medical technology, expanded hospital services, maintenance and expansion of physical infrastructure and the enhanced ability to hire and maintain skilled workforce.
New Jersey Hospitals pay
over $200 million
annually in taxes including:
- 0.53 Percent Assessment:
$172.7 million
- Adjusted Admissions Assessment:
$17.9 million
- Newborn Screening Fees:
$16 million
- Other assessments such as New Jersey Poison Information & Education System (NJPIES) and Maternal and Child Health Consortium Assessment
- In addition, hospitals support their local municipalities through voluntary, negotiated payments and in-kind contributions.
1 The goods and services hospitals purchase from other businesses create additional economic value for the community, as estimated through the use of “multipliers” by which spending in one sector affects other sectors. For employment, these ripple effects mean that each hospital job results in a total of 2.2 jobs in the overall economy as hospital employees use their wages to purchase goods and services, which in turn creates income and jobs for other businesses. Similarly, each dollar spent by a hospital results in a total of $2.2 in overall economic output. New Jersey hospitals thus support approximately 357,000 total jobs and over $70 billion in economic activity statewide.
Source for multipliers: American Hospital Association, “Hospitals Remain Economic Pillars in Their Communities,” Oct. 2023; analysis based on multipliers from the U.S. Bureau of Economic Analysis’ Regional Input–Output Modeling System (BEA RIMS-II).
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