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Economic & Community Benefit Analyses:

4th Congressional District  |  Kathleen Rice

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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Community benefits
and investments

Adhering to their charitable mission, hospitals cover the cost of care provided to people in need; subsidize care and services to low-income, elderly and under-served communities; and continuously invest in many community health initiatives. Data source: 2019 IRS Form 990 Schedule H, reported by hospitals. This figure does not include the billions more in community benefit provided by New York’s 23 public hospitals, which are exempt from filing this IRS form.

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provided care
People Treated in the Emergency Room icon


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, 63% of inpatient discharges and 56% 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:

  • Long Island Jewish Valley Stream*
  • Mercy Hospital (Long Island)
  • Mount Sinai South Nassau
  • Mount Sinai South Nassau - Free-Standing Emergency Department at Long Beach
  • Nassau University Medical Center
  • NYU Langone Hospital-Long Island*

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.

* The data for this hospital reflect consolidated health system results.