MCGHealth Generates $835 Million for the Local Economy

Like the inoculations its nurses administer, MCGHealth provided a valuable shot in the arm to the CSRA economy in 2005, pumping in $835 million, according to a report by the Georgia Hospital Association. In addition, MCGHealth sustained about 7,000 full-time jobs, accounting for 38 percent of jobs created by all local hospitals combined.

The report revealed that MCGHealth had direct expenditures of nearly $339 million. However, when combined with an economic multiplier developed by the U.S. Department of Commerce’s Bureau of Economic Analysis, the total economic impact of the hospital was $834,998,297. This output multiplier considers the “ripple” effect of direct hospital expenditures on other sectors of the economy, such as medical suppliers, durable medical equipment and pharmaceuticals.

“The report emphasizes that our hospitals play many vital roles in this community,” said Don Snell, President and CEO of MCGHealth. “In addition to meeting the critical health care needs of our patients, we contribute to the community’s economic health by providing significant, market-driven compensation to our employees and by using local businesses to supply us with goods and services. This generates a considerable trickle-down effect.”

Using a “household earnings multiplier,” the study determined that MCGHealth generated more than $351 million in household earnings in the local economy. The household earnings formula measures the increased economic contributions from households employed directly or indirectly by MCGHealth.

The report also found that MCGHealth provided $40 million in care for which the organization was not compensated in 2005.