Tanner’s Impact: Health System Contributes More Than $666.3 Million to Region’s Economy
Posted Date: 8/20/2013
Mary-Sue Morrow, a hematology specialist at Tanner Medical Center/Carrollton, processes samples in the hospital's laboratory. Tanner contributed $666.3 million to the region's economy in 2011, according to a new report, and created 5,100 full-time jobs in the region.
Liltrell Holland, left, and Jamie Strickland prepare orders in Bistro '49 at Tanner Medical Center/Carrollton.
A new report pegs Tanner Health System’s economic impact to the region at more than $666.3 million in revenue for the local economy.
The annual Economic Impact Report from the Georgia Hospital Association (GHA), using data from 2011—the most recent data available—shows Tanner also created almost 5,100 full-time jobs in the region.
“This is a hard time for hospitals throughout Georgia,” said Loy Howard, president and CEO of Tanner Health System. “Many smaller health systems and independent hospitals throughout the state are struggling, and many are being acquired by larger health systems interested in consolidating services. We’re fortunate to have a robust, vibrant and locally operated health system in west Georgia and east Alabama, so we can keep making important decisions regarding the health of our region locally.”
According to the report, Georgia’s hospitals continue to face major financial challenges. More than a third—38 percent—of hospitals in the state had a negative operating margin for 2011, and 55 percent of Georgia’s rural hospitals lost money. The state’s rising uninsured population, as well as an unsteady health insurance market, are at least partially to blame for the plight of many of Georgia’s hospitals.
Two rural hospitals—Stewart Webster Hospital in Richland and Calhoun Memorial Hospital in Arlington, were forced to close earlier this year due to financial reasons.
“Community support is essential to keeping health care in our region,” said Howard. “The $666.3 million in revenue Tanner has been able to turn back into the region’s economy is evidence that people continue to trust us with their health. As a nonprofit healthcare organization, their support translates into investments in new facilities and services, new technology and more jobs for our area.”
GHA compiles its annual Economic Impact Report to provide a better view of how Georgia hospitals serve as vital economic engines for local and state economies. Figures provided by the Georgia Department of Community Health are processed through economic multipliers developed by the United States Department of Commerce’s Bureau of Economic Analysis to give a more accurate portrayal of how jobs and revenue generated by hospitals and health systems in Georgia actually impact their local economies.
Based on the hospital’s total direct expenditure—or how much money the hospital spent in 2011—Tanner Medical Center/Carrollton led the system in economic impact with a total output of almost $369 million injected into the region’s economy. The hospital generated more than 3,100 full-time jobs in the community and led to the contribution of almost $200 million in household income for area residents.
Tanner Medical Center/Villa Rica and Willowbrooke at Tanner generated more than $145 million in total output and helped generate more than 900 full-time jobs, contributing to a total household income of more than $52 million. Higgins General Hospital in Bremen generated more than $71 million in total output, almost 450 full-time jobs and household income of almost $30 million.
Tanner Medical Group, one of metro Atlanta’s largest multi-specialty physician groups, produced a total output of more than $81.6 million for the region’s economy, generated almost $52 million in total household earnings and more than 600 full-time jobs.
According to Howard, the contribution of Tanner’s impact reflects the importance of using local services and supporting local industries.
“The dedication of our medical staff and our team of healthcare professionals—as well as the loyalty of our patients—enables Tanner to continue as an economic leader,” said Howard. “Using local services creates local jobs and opportunities for our neighbors. Another aspect that makes this economic benefit figure even more compelling is that there are no local tax dollars required to generate this economic benefit.”
Statewide, Georgia hospitals represented a $38.6 billion boost to the economy, employing more than 124,000 workers and indirectly creating more than 283,000 full-time jobs.
“A lot of people have jobs because of the hospital in their community,” said Howard. “The $666.3 million of economic impact in our region reflects the importance of supporting local businesses, hiring local vendors and choosing local contractors. There are a lot of people—not just employees—who rely on the jobs and income that Tanner generates. That’s an obligation we take very seriously.”
Tanner’s impact on job creation extends even further when it comes to attracting new economic prospects to the region, since access to good health care and good schools are among the major considerations of companies that consider establishing operations in a region.
“Health care and education are fundamental parts of a sound economic development program,” said Howard. “That gives the region a significant competitive advantage over many other areas of the state.