May 25, 20125/23/2012
Northeast Georgia Medical Center (NGMC) has now surpassed the $1 billion mark in local and state economic impact. In 2010, Northeast Georgia Medical Center (NGMC) generated $1,034,788,975 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 almost $450 million in 2010. 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 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 more than $42 million in uncompensated care, such as indigent and charity care and bad debt, in 2010. This contribution doesn’t take into account the more than $4.3 million the Medical Center also provided in community outreach activities in 2010, such as free screenings and health education. According to the study, NGMC sustained more than 10,700 full-time jobs throughout northeast Georgia and the rest of the state in addition to the almost 5,000 employees directly employed by the health system.
“Northeast Georgia Medical Center is an economic engine in northeast Georgia, and that’s a responsibility we take very seriously, as we strive to provide not only top quality health care but also financial stability and security for almost 5,000 residents employed through our health system,” said Carol Burrell, President and CEO of Northeast Georgia Health System. “We are excited about the local economic opportunities our new hospital in Braselton will provide and have already seen a great response to our outreach efforts to involve local subcontractors, vendors and craftsmen in the project.”
The figures in the GHA study 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 and long term care facilities.