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Oregon Community Hospitals Support 1 in 20 Jobs Throughout State

Oregon community hospitals both directly provided and helped support over 117,000 jobs to Oregon communities in 2015—or 1 in 20 jobs, according to the most recent data available in a new study conducted by ECONorthwest and released today by the Oregon Association of Hospitals and Health Systems (OAHHS).

Over 62,000 Oregonians are directly employed by Oregon’s community hospitals and over 55,000 jobs are associated with hospitals, showing that community hospitals continue to be critical economic drivers. These over 117,000 hospital and hospital-related jobs account for 4.9 percent of the state’s total employment. From 2013 to 2015, direct hospital employment increased in the state by 2,569 jobs or by 4.3 percent.

To download the entire report, click here.

“Today’s report shows the continued importance of Oregon’s community hospitals to the well-being both of Oregonians and Oregon’s economy,” said Andy Van Pelt, executive vice president of OAHHS. “From Portland to Heppner, hospitals are an important cornerstone within Oregon communities for economic, social, and health reasons. However, proposed health care legislation at the state level creates an uncertain future for both community hospitals and the patients they serve.”

“Job growth in the healthcare sector has been robust during the past few years,” said John Tapogna, President of ECONorthwest. “Urban and rural communities across the state benefit from healthcare jobs and operations, which support our aging population and provide middle and higher-income jobs.”

Other key findings from the report include:
  • Direct Output. Oregon hospitals directly accounted for $9.6 billion in economic output in Oregon in 2015, up from $8.4 billion in 2013.
  • State and Local Taxes. Hospitals directly generated approximately $258 million in tax and fee revenue for state and local jurisdictions in 2015. State and local governments collected another $295 million in taxes from businesses that supply goods and services to hospitals. This sums to a total tax revenue of about $553 million.
“Oregon communities depend on hospitals for not only essential health care but also for the economic stability that these jobs provide,” added Van Pelt. “Community hospitals are a vital source of sustainable, family-wage jobs and ensures that patients across Oregon have access to quality inpatient and outpatient care 24 hours a day, 365 days a year.”

In 2015, Oregon hospitals also provided more than $1.9 billion in community benefit contributions, an increase over 2013’s contributions. In Oregon, “community benefit” is defined in statute as health care-related services that nonprofit hospitals provide without the expectation of compensation.

“This data shows that hospitals are not only meeting pledges to maintain their overall community benefit levels—they are exceeding them,” said Van Pelt. “This is happening despite a significant drop in charity care due to the Affordable Care Act. Oregon continues to be one of the only states to pro-actively provide core community benefit to local communities.”

The economic impact study—commissioned by OAHHS—was conducted by ECONorthwest using state-specific data from the American Hospital Association and using the IMPLAN economic modeling tool.

To download the entire report, click here.