Northeast Georgia Medical Center (NGMC) surpassed the $1 billion mark in local and state economic impact for the second consecutive year. In 2011, Northeast Georgia Medical Center (NGMC) generated $1,064,206,843 in revenue for the local and state economy according to a report released today by the Georgia Hospital Association, the state’s largest hospital trade association.
The report revealed that NGMC had direct expenditures of more than $465 million in 2011. When combined with an economic multiplier developed by the United States Department of Commerce’s Bureau of Economic Analysis, the total economic impact of those expenditures was more than $1 billion. This output 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 used 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 more than $47 million in uncompensated care, such as indigent and charity care and bad debt, in 2011. This contribution doesn’t take into account the more than $4.4 million the Medical Center also provided in community outreach activities in 2011, such as free screenings and health education. According to the study, NGMC sustained more than 8,000 full-time jobs throughout northeast Georgia and the rest of the state in addition to the more than 5,000 employees directly employed by the health system.
“This new report shows that Northeast Georgia Medical Center continues to have a tremendous positive impact on our local economy,” said John Nix, chairman of the Northeast Georgia Medical Center Board. “As we move closer to the opening of NGMC Braselton in Spring 2015, this economic impact will only increase.” At the height of construction, NGMC Braselton will have more than 250 workers on-site, and by the time the hospital opens, approximately 300 people will be employed at NGMC Braselton. In addition, the presence of the new hospital is predicted to create around 800 induced jobs, including healthcare-related retail and physician offices.
The figures in the GHA study only reflect the economic impact of hospital expenditures and do not include the impact of other services, such as physician offices and long term care facilities, provided by Northeast Georgia Health System.