Hospitals are a vital piece of California’s health care delivery system. While serving the 38 million residents of our state, hospitals are committed to providing high quality care to those in need 24 hours per day, 7 days per week. In addition to supporting the health care needs of patients, hospitals provide great benefit to the communities in which they are located.
At a time when the Unites States economy has shrunk and we have seen unemployment grow, hospitals have been an economic foundation in California. Hospitals have provided both stability and growth through maintaining jobs, continued economic output as well as contributions to state and local taxes.
According to the US Department of Labor, 10 of the 20 fastest growing occupations are healthcare related. Within the HASC region (most of southern California), there were nearly 40,000 private and public establishments and almost 667,500 payroll employees in the health care sector, representing 9.8 percent of all payroll employment in the HASC area
- · There were 3,056 private and public establishments and 46,905 payroll employees in the health care sector, representing 8.5 percent of all payroll employment in Riverside County.
- · There were more than 2,920 private and public establishments and 68,690 payroll employees in the health care sector, representing 11.6 percent of all payroll employment in San Bernardino County.
Growth in jobs within the healthcare sector has accelerated in the past decade, averaging approximately 2.3 percent on an annual basis since 2000.
The hospital industry in the HASC region contributed $74.4 billion in total economic output.
- · The hospital industry in Riverside County contributed $5.1 billion in total economic output and supported 37,280 full- and part-time jobs with total labor income (including benefits) of $2.1 billion.
- · The hospital industry in San Bernardino County contributed $7.0 billion in total economic output and supported 50,900 full- and part-time jobs with total labor income (including benefits) of $2.9 billion.
It is important to remember that the total economic contribution of the hospital industry extends beyond the activity generated within the sector itself. Wages paid to the staff and payments made for purchases of goods and services circulate throughout the economy generating additional indirect and induced activity.
State and Local Taxes:
It is estimated that the hospital industry generated $3.8 billion in state and local taxes through its contribution to economic activity in the region. Of that amount:
- · Hospitals in Riverside County generated $272 million in state and local taxes through its contribution to economic activity in the county.
- · Hospitals in San Bernardino County generated $364 million in state and local taxes through its contribution to economic activity in the county.
It is critical that California has strong and adequately funded health care providers. We depend on our health care providers to be there for us in times of need. In turn, our health care providers depend on the support of government and the public to continue to exist. We urge our legislators, members of Congress and community leaders to protect our health care providers in California. By protecting health care in California, you are protecting the 667,500 jobs within the health care sector, the 3.8 billion dollars in state and local taxes as well as the health care needs of the 38 million residents in the state of California.