Study: Hospitals Put $40B Into State Economy

Published September 5, 2014

Georgia hospitals pumped nearly $40 billion into the state’s economy in 2012, according to a new study released by the Georgia Hospital Association.

The state’s hospitals employed more than 126,000 full- and part-time workers that year and indirectly were responsible for more than 287,000 other full-time jobs across Georgia, the report found.

“Georgia hospitals do much more than provide life-saving health care services,” GHA President and CEO Earl Rogers said in a news release. “They are a major part of the economic vitality of the communities they serve.”

Despite those economic contributions, the study also revealed financial strains affecting Georgia hospitals, largely driven by the growth in uncompensated care. In 2012, the state’s hospitals provided more than $1.6 billion in unpaid care, an increase of about $60 million from 2011.

“Very few businesses can operate long term when nearly 20 percent of their customers cannot pay,” Rogers said.

The GHA and other Georgia health-care organizations have urged Republican Gov.Nathan Deal and GOP legislative leaders to address the uncompensated care issue by expanding Medicaid eligibility through the Affordable Care Act.

However, the governor has declined to do so, citing concerns the state would be forced to absorb some of the costs of expanded Medicaid coverage starting in the fourth year of the program. The law provides that the federal government pick up the full cost during the first three years.

Source: Atlanta Business Chronicle