Report says hospitals, health systems have $34.4 billion impact

Published September 10, 2014 by Robert Powell, III

The hospital and health systems contributed $34.8 billion to the commonwealth’s economy in 2012, according to an industry trade group.

An annual report by the Virginia Hospital & Healthcare Association said the industry supported 913,636 jobs.

The health-care industry directly employed 444,298 people, while hospitals alone employed 123,508 in the commonwealth.

In 45 percent of Virginia cities and counties, hospitals and health systems are among the top three employers. In 60 percent of localities, they are among the top five.

Virginia hospitals accounted for $200 million in state and local taxes in 2012 and provided over $600 million in charity care .

During the next 10 years, the report said, Virginia hospitals will lose $6.2 billion in Medicaid and Medicare reimbursements  as a result of changes involved in the federal Affordable Care Act. (The commonwealth did not choose to expand its Medicaid program, an element of the original ACA.)
The association says that, despite increased enrollment at medical schools and other health-care schools, hospitals still face potential workforce shortages because of a lack of residency slots and training opportunities .
The Virginia Hospital & Healthcare Association represents 110 hospitals and 36 health systems.