Northeast Georgia Medical Center Closing in on $1 Billion Contribution to the Local Economy
Published on April 18, 2011GAINESVILLE, Ga. – In 2009, Northeast Georgia Medical Center (NGMC) generated more than $990 million in revenue for the local economy according to a recent report by the Georgia Hospital Association, the state’s largest hospital trade association.
The report noted that NGMC had direct expenditures of more than $400 million in 2009. When combined with the U.S. Dept. of Commerce’s economic multiplier, the total economic impact of those expenditures was more than $990 million ($991,253,254). This financial multiplier considers the “ripple” effect of direct hospital expenditures on other sectors of the economy, such as medical supplies, durable medical equipment and pharmaceuticals. Economic multipliers are utilized to model the impact of a change in one industry on the “circular flow” of spending within an economy as a whole.
The report also highlighted that NGMC provided almost $38 million in uncompensated care, such as indigent and charity care and bad debt, in 2009. This contribution doesn’t take into account the more than $4.5 million the Medical Center also provided in community outreach activities in 2009, such as free screenings and health education. According to the study, NGMC sustained more than 8,300 full-time jobs throughout northeast Georgia in addition to the more than 4,000 employees directly employed by the hospital.
“It’s important to note that this study from the Georgia Hospital Association only focused on the economic impact of the hospital and did not include the tremendous economic impact of physician practices on our community. Physicians, along with the Medical Center, not only provide high quality healthcare services to our community, but also serve as an economic anchor during these uncertain times. This is a responsibility we take very seriously,” says Carol Burrell, Interim CEO and Executive VP/COO at Northeast Georgia Health System. “We will continue working hard to ensure citizens of this community have access to top quality healthcare services close to home.”
These figures only reflect the economic impact of hospital expenditures and do not include the impact of other services provided by Northeast Georgia Health System, such as physician offices.