Hospitals are the largest contributor to the overall health of residents within a community. But they also contribute greatly to the overall economic health of the communities they serve, too.
The Georgia Hospital Association recently released its 2017 Economic Impact Report, which quantifies the impact of the Archbold health system in the region. Using the U.S. Bureau of Economic Analysis methodology, Archbold Medical Center’s regional economic impact was over $641 million in revenue for the local and state economy in 2017. The report also found that Archbold’s Grady General Hospital contributed over $49 million to the local economy during the same time period.
According to the report, during the same time period, Archbold provided approximately $26.2 million in uncompensated care for patients in South Georgia and North Florida, $3.2 million of which was provided in Cairo by Grady General Hospital. The Archbold health system sustained more than 2,079 full-time jobs throughout South Georgia and the rest of the state, while GGH was directly responsible for employing 140 people in Cairo, and creating or sustaining 346 jobs in the region and statewide.
The report revealed that Archbold had direct expenditures of over $274 million in 2017, $21 million of which were tied to GGH. When combined with an economic multiplier developed by the United States Department of Commerce’s Bureau of Economic Analysis, the total economic impact of those expenditures was over $641 million for the entire Archbold health system and slightly over $49 million for Grady General Hospital. This output multiplier considers the “ripple” effect of direct hospital expenditures on other sectors of the economy, such as medical supplies, medical equipment and pharmaceuticals. Economic multipliers are used to model the resulting impact of a change in one industry on the “circular flow” of spending within an economy as a whole.
“We strive to always provide high quality healthcare and use the most advanced medical technology to meet the healthcare needs of our patients,” said Perry Mustian, Archbold President and CEO. “But the impact we have on region’s economic health is very important, too.”
The regional health system based in Thomasville employs over 2,079 people. Archbold’s Grady General Hospital employs 140 people in Cairo. According to the GHA report, for every Archbold employee, there is more than one supporting job created throughout the region and state. In addition the funds the organization spends on goods and services flow from the hospital to businesses, and those funds ripple through the local economy, as well.
“Our hospital is a place of hope and healing in our community,” said Crystal Wells, administrator of GGH. “We’re proud to be such a vital part of this community, and to have a meaningful economic impact.”