2006 Press Releases
Rome Memorial Hospital pumps $108.3 million into the local economy ROME – Rome Memorial Hospital’s economic impact on the local community increased by nearly 30% in three years, according to an economic impact analysis that projects the ripple effect of industry spending. One of Rome’s largest employers, Rome Memorial Hospital contributed $108.3 million to the local economy in 2004, compared to $83.8 million in 2001. The hospital also supported 1,460 jobs, which funded $4.7 million in state and local taxes. Jobs are the lifeblood of a community. Each paycheck pulses through the economy, supporting businesses as dollars are spent on housing, groceries and other goods and services. Jobs fuel more jobs. “The critical health care services that Rome Memorial Hospital provides will always be the most recognized and most valuable contribution to our community,” said Vice President/Chief Financial Officer Nicholas Mayhew. “But, our success as an organization is also tied to the financial health of the local economy because we are a major employer and purchaser of goods and services.” “Because most of healthcare is funded through state and federal Medicaid/Medicare programs and private insurance, it’s often viewed as a burden on the economy,” Mayhew said. “However, the dollars are well spent. The return on investment is a better quality of life for the people who place their trust in our care and a significant positive economic impact on our community.” According to Mayhew, the economic return on investment is more than 55% – $1.82 is returned to the community for every dollar spent on healthcare. “The hospital received $59.6 million for the provision of healthcare services in 2004. That investment contributed $108.3 million to the local economy,” he said. “Hospitals are one of the few organizations that can have such a significant impact on a community’s vitality as both an economic powerhouse and provider of critical services,” Mayhew said. In 2005, the hospital treated nearly 20,000 people in its Emergency Department and delivered 599 babies. Nearly 6,000 infants, children, adults and seniors are hospitalized annually. There are also more than 144,000 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 include: Rome Memorial Hospital as an Employer · In 2004, Rome Memorial Hospital employed approximately 1,000 full and part-time employees, or 830 full-time equivalents. Through the ripple effect, it supports another 630 jobs in the community because the hospital and its employees are purchasers of goods and services. · The hospital’s total payroll was $35,907,000. Dollars earned by Rome Memorial Hospital employees are spent on groceries, clothing, mortgage payments, rent, etc., generating approximately $68,980,000 in total economic activity for the local economy. Rome Memorial Hospital Purchasing · Rome Memorial Hospital spends about $18,338,000 per year on the goods and services it needs 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 $35,230,000. Rome Memorial Hospital’s Capital Spending · In 2004, Rome Memorial Hospital spent $2,126,000 on buildings and equipment, which generated a total local impact of $4,084,000. Rome Memorial Hospital’s Impact on State and Local Tax Collections:
· Rome Memorial Hospital’s employees and those jobs supported indirectly by the hospital paid $2,069,000 in state income taxes in 2004.
· Rome Memorial Hospital’s employees and those jobs supported indirectly by the hospital paid $1,381,000 in local sales tax and $1,211,000 in state sales tax. Rome Memorial Hospital Economic Impact Analysis | | Hospital’s Direct Impact | Multiplier Effect | Total Impact | Jobs | 830 FTEs | 630 FTEs | 1,460 FTEs | Payroll | $35,907,000 | $33,073,000 | $68,980,000 | Supply Purchases | $18,338,000 | $16,892,000 | $35,230,000 | Capital Spending | $2,126,000 | $1,958,000 | $4,084,000 | Total | $56,371,000 | $51, 923,000 | $108,294,000 | Ripple effect calculated using Regional Input-Output Modeling System II (RIMS II) developed by the U.S. Department of Commerce, Bureau of Economic Analysis (BEA). |
|
