NJ Hospitals Rake in $20.4 Billion for State
NEW JERSEY 101.5
New Jersey hospitals contributed $20.4 billion to the state economy in 2012.
That’s according to the 2013 N.J. Hospitals Economic Impact Report released today by the New Jersey Hospital Association (NJHA). This is the first time in the six years NJHA has published the report that the overall contribution from hospitals surpassed $20 billion.
Despite the sluggish economy, the report found that in 2012 there were increases in key areas of hospital activity including jobs growth, goods and services purchased from other businesses and state income taxes paid by employees. Hospital jobs in the Garden State were up to 144,000 in 2012. That includes 120,000 full-time jobs.
“New Jersey hospitals remain a strong and reliable source of jobs, salaries and spending, demonstrating that they are bedrocks of our state and local economies,” said Betsy Ryan, president and CEO of NJHA.
Highlights from the report include:
- New Jersey hospitals purchased $2.6 billion in goods and services from other companies last year, an increase of $100 million over 2011. Key areas include contracted labor ($1.3 billion), pharmaceuticals ($881 million), utilities ($267 million), dietary, laundry and housekeeping ($139 million) and building supplies ($19 million).
- New Jersey hospitals paid $8 billion in employee salaries last year, compared with $7.9 billion in 2011.
- Employees at New Jersey hospitals paid approximately $450 million in state income taxes last year, compared with $435 million in 2011.
Ryan said in addition to the amount of money hospitals generate, they also provide valuable healthcare services to the patients and communities they serve.