October 2010 | MCHC White Papers

Community Assets, 2010

When a person goes to a hospital in need of care they will be treated; heart attack or head cold, young or old, insured or uninsured. The 95 hospitals in the greater metropolitan Chicago area are committed to preserving the health and well-being of their communities. They are driven by their mission to provide quality care with compassion to all who need it. Hospitals in the metropolitan Chicago area serve their communities both through economic and community benefits. READ

Direct Economic Impact

Chicago-area hospitals’ operations inject significant cash-flow into local economies. In 2008, hospitals in the metro Chicago area employed 150,751 full-time employees who were each paid, on average, more than $80,000 annually including benefits. All together, area hospitals generated an annual payroll of $12.1 billion. Each hospital employed an average of 1,587 people with an annual payroll of $127 million. READ

Community Benefits

In addition to supporting their local economies through their workforce and capital expenditures, hospitals throughout the metropolitan Chicago region foster a tradition of serving the needs of their communities through not only medical services, but also community wellness programs, education and research. These services, provided by hospitals at a financial loss, embody each hospital’s mission to care for their community, both today and in the future. READ

Indirect Economic Impact

Hospitals in the metropolitan Chicago area make a significant contribution to the region’s economy. It is important to not overlook the secondary economic impacts created when hospitals and their employees spend money. These secondary benefits are measured by multipliers using a model that is widely used and accepted by economists and academics across the U.S. READ

Providing Care in a Recession

The economic recession is seriously straining hospitals’ ability to provide care, both here in the metropolitan Chicago area and across the country. A variety of factors have exacerbated the recession for hospitals; greater numbers of uninsured patients are flooding the health care system, particularly the emergency departments which is the most expensive place to provide care; and lower-than-cost Medicare and Medicaid reimbursement rates coupled with an aging population in need of more care has stretched hospital resources very thin. READ

Looking Forward

Hospitals are important assets for their communities. Even with a weak economy, the U.S. Bureau of Labor Statistics (BLS) estimates a 22.5 percent increase in health care jobs between 2010 and 2018. Ten of the top 20 fastest growing occupations are in the health care field. READ

Appendices

Appendix 1: Congressional District; Appendix 2: Illinois Counties; Appendix 3: Estimated Taxes Generated Through Payroll from Metropolitan Chicago Area Hospitals from Operation and Construction Activities; Appendix 4: Estimated Sales Taxes Generated Through Payroll from Metropolitan Chicago Area Hospitals from Operations and Construction Activities READ

Community Assets: A report on the econonmic benefits and charitable contributions of hospitals in the metropolitan chicago area.