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Economic & Community Benefit Analyses:

80th Assembly District  |  Nathalia Fernandez

New York’s Hospitals and Health Systems Improve the Economy and Community

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Economic activity

The economic activity generated by hospitals through jobs and the purchasing of goods and services makes up 10.6% of the state’s entire gross domestic product. Data are mainly from 2020 New York state hospital cost reports.

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Jobs generated

Hospitals and health systems are often the largest employers in communities, generate many more jobs and are top 10 private sector employers in every region of New York. Data source: New York State Department of Labor 2020.

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Payroll expenditures

New York hospitals’ #1 investment is in their people, including direct salary and benefits to their employees. Data are mainly from 2020 New York state hospital cost reports.

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Tax dollars

New York hospitals generate significant tax dollars and stimulate the economies of local communities and the whole state. Data are mainly from 2020 New York state hospital cost reports and state/federal tax tables.

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provided care
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People treated in the
emergency room
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People admitted
to hospitals
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Babies delivered

The hospital-specific patient volume figures in this report are from 2020, the latest year available. Patient volume patterns were severely impacted by the COVID-19 pandemic in 2020. Even with surges of COVID-19 patients across the state, inpatient volumes were down 11% on average from 2019 to 2020; emergency room visits dropped by 20%, with overall outpatient volumes dropping by 12%. While each hospital experience during 2020 was different, these downward volume trends show just part of the pandemic’s impact on healthcare utilization and hospital financials statewide.

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Reimbursement from Medicare and Medicaid

In this district, 83% of inpatient discharges and 65% of outpatient visits are covered by Medicare and Medicaid.

A large share of hospital reimbursement comes from Medicare and Medicaid, which do not cover the cost of care. This underpayment is driven by large volumes of inpatient and outpatient services provided to individuals covered by these public insurance programs.

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This report includes data from the following:

  • NYC Health + Hospitals / Jacobi

Due to its inherent safety-net role, this public hospital is exempt from reporting community benefit and investment activity to the federal government. As a result, millions of dollars for these commitments are not included in the data shown.