December 10, 2008

Contact:

Chris Kemper, Director, Public Relations
Cincinnati USA Regional Chamber, (513) 579-3194

Nancy Strassel, Senior Vice President
Greater Cincinnati Health Council, (513) 531-0200

Economic Impact of Greater Cincinnati Hospitals
Totals More Than $13.9 Billion

Figure Represents 85 Percent Increase from 2002

CINCINNATI, December 10, 2008 – The daily operations of 31 of Greater Cincinnati’s hospitals and their affiliated facilities resulted in a multi-billion dollar boost to the Tristate economy in 2007. According to a study released today, the economic impact attributed to these hospitals last year totaled $13.93 billion. This figure represents an 85 percent increase from an economic impact of $7.55 billion reported in 2002, the last time the study was commissioned.

Ellen van der Horst, president of the Cincinnati USA Regional Chamber, emphasizes that the region benefits from investments that hospitals have made in the communities they serve.

“Not only do the residents benefit through highly accessible, high quality health care services, but area businesses also realize advantages through revenues resulting directly or indirectly from hospital expenditures,” said van der Horst. “Moreover, nationally recognized hospitals are essential community assets, and as such they serve as a critical component to bringing top people to our region.”

“Without question, in Greater Cincinnati our hospitals fulfill a crucial role in contributing to the overall economy,” says Colleen O’Toole, president of the Greater Cincinnati Health Council. “Even as we weather these uncertain economic times, our hospitals are not only maintaining their solid presence in our communities, but they are also reinvesting in their ability to provide world-class care.”

The report, commissioned by the Cincinnati USA Regional Chamber and the Greater Cincinnati Health Council, finds that Tristate hospitals and their affiliated facilities contribute to the region’s economy in a multitude of ways. According to the report, prepared by the University of Cincinnati’s Economics Center for Education & Research:

• The total economic impact of Greater Cincinnati hospitals and their related health care facilities is $13.93 billion. This includes a household earnings impact of $5.57 billion, representing a 75 percent increase from the $3.18 billion in 2002.
• The total impact on employment in Greater Cincinnati is 127,229 jobs, representing a 36 percent increase from 93,518 jobs in 2002.
• The hospitals and their related facilities employed a total of 51,802 people as of June 2007. Of these jobs, 63 percent were full-time and 37 percent were part-time. Total employment has increased by 12 percent since 2002.
• The economic impact generated by non-local patients (those not residing in the Greater Cincinnati region) almost doubled since 2002, from $413.4 million to $742.4 million. Approximately 7 percent of area hospitals’ patients come from outside the region.

“It is fair to say that the hospitals in Greater Cincinnati are making an important contribution to the region’s economic development,” says Jeff Rexhausen, associate director of Research at the Economics Center for Education & Research at the University of Cincinnati.

“The 12 percent employment growth rate in Cincinnati area hospitals was comparable to the overall (education and health services) industry sector growth, but the hospitals’ impact on total employment has grown more rapidly because they have also become a larger driver of employment in other industries.”

O’Toole adds, “Greater Cincinnati hospitals provide a myriad of benefits that significantly enhance life for Tristate citizens.” These benefits include top-notch health services, competitive wages and benefits and increased employment. She notes that in addition to their strong economic impact, local hospitals also provided nearly $240 million in uncompensated care in 2007. “This means hospitals are contributing to the overall quality of life in multiple and remarkable ways for all people in our region.”

The study also shows:

• In 2007, Health Council member institutions’ expenditures totaled $6.19 billion. Personnel expenditures, including contracted services, wages and benefits accounted for the largest component of these expenditures, totaling $3.48 billion, or 56 percent of total expenditures.
• Spending in construction totaled $455.9 million, accounting for 65 percent of total capital expenditures in 2007. This created an additional $590.3 million in indirect business sales and household income in the Greater Cincinnati economy, producing a total economic impact of $1.04 billion.
• Investment in information technology amounted to $67.5 million during 2007, accounting for 9.7 percent of capital expenditures. This created an additional $245.3 million in indirect business sales and household income in the Greater Cincinnati economy, producing a total economic impact of $430.4 million.
• Job vacancy rates are indicative of an increased need for skilled health care workers in the region. The report lists 3,160 unfilled positions, accounting for 5.7 percent of total health care jobs.

The Greater Cincinnati Health Council represents 34 hospitals in the Greater
Cincinnati region whose employment and business interactions create economic benefits across households and industries throughout the Tristate. The Economic Impact Study estimates the economic impact of 31 of these hospitals on Greater Cincinnati’s employment, household earnings and business sales for the most recently completed fiscal year as of December 2007.

The report focuses on Greater Cincinnati Health Council member hospitals located in the following counties: Hamilton, Butler, Warren, Clermont, Brown, Adams, Highland and Clinton counties in southwestern Ohio; Boone, Kenton and Campbell counties in Northern Kentucky; and Ripley and Dearborn counties in southeastern Indiana.

For more information, contact Nancy Strassel of the Greater Cincinnati Health Council at (513) 531-0200 or Chris Kemper of the Greater Cincinnati Chamber of Commerce at (513) 579-3194.

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The Greater Cincinnati Health Council works with Tristate hospitals and other health providers to promote high quality, high value health care and to affect overall positive change in the health of the community. The Council is a recognized resource for information about area hospitals and the complex issues facing the health care industry.

The Cincinnati USA Regional Chamber is the nation's fifth largest chamber, representing the interests of nearly 6,000 member businesses. Its mission is to capture Cincinnati USA as one of the world's favorite American business centers. The Chamber serves its membership and the Cincinnati USA community through economic development, government advocacy, festivals and events, regional vision and collaboration, money-saving benefit programs, leadership and networking opportunities and educational programs. Twice in the last decade, the Cincinnati USA Regional Chamber has been recognized as the national chamber of the year.