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N.J. hospitals provide $2.5B in community benefits, $11B to state economy

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New Jersey hospitals provided $2.58 billion in benefits to their communities in 2012, not including health care services provided to their patients, according to a report form the New Jersey Hospital Association.

“That community role is one we gladly accept,” Betsy Ryan, NJHA president and CEO, said. “The fact is, hospitals are much, much more than medical care.”

The benefits include the value of free and discounted care for the poor, uninsured and senior citizens, wellness programs, education, medical research and community health offerings and programs, according to the 2013 NJHA New Jersey Hospital Community Benefit Report.

“Hospitals’ contributions – in both economic and community benefits – make them an essential part of the Garden State’s well-being. It is a responsibility and commitment that they proudly embrace,” Ryan said.

The $2.58 billion broken down in the report include:

  • $2 billion in unpaid costs of patient care, which includes $623 million in unreimbursed charity care services for the working poor, $290 million in unpaid care for Medicare patients and $111 million in unpaid care for Medicaid patients. This amount also includes $1 billion in uncollectable costs for treatment.
  • $65.8 million in community health improvement services, which include programs such as health fairs, health screenings and immunization clinics. About 6,105 programs were held statewide.
  • $123.9 million in for education, training and scholarships for 124,243 aspiring physicians, nurses and other healthcare professionals.
  • $366.2 million in other programs including medical research, cash contributors to municipalities and in-kind services to the community.

In addition to the community benefits, New Jersey hospitals also provide billions in economic benefits to state and local economies.  Data from the NJHA’s 2013 New Jersey Hospitals Economic Impact Report shows that Garden State hospitals delivered:

  • 144,000 jobs
  • $8 billion in employee salaries
  • $2.6 billion in goods and services purchased from other companies
  • $450 million in state income taxes paid by hospital employees

Data for the report was collected from 57 of the state’s 73 acute care hospitals through a rigorous survey process. Most of the information was collected electronically through data collection software; other hospitals reported on a manual survey form. NJHA used standardized reporting categories and definitions from the Catholic Healthcare Association and the Veterans Health Administration, which are widely used by hospitals across the country.

The full report is available in NJHA’s online pressroom at www.njha.com/pressroom under Resources for Reporters. The full report can be viewed here.


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Emily Bader

Emily Bader

Emily Bader is the Web Editor and Social Media Coordinator at NJBIZ. She is a Brielle, N.J. native and a Rutgers University alum. You can contact her at emilyb@njbiz.com.

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