from the archive
December 15, 2009
Minnesota's medical schools and primary teaching hospitals have $8.4 billion impact on the state's economy
News Summary
- Minnesota’s medical schools and teaching hospitals had more than an $8.4 billion impact on the state’s economy in 2008, according to an Association of American Medical Colleges (AAMC) report on its member institutions.
- The report found that Minnesota’s member institutions are responsible directly or indirectly for 65,430 jobs, and government revenue from various types of taxes contributes more than $496 million.
- On a national level, AAMC member institutions had an overall $512 billion impact on the country’s economy.
Quotes
"U.S. medical schools and teaching hospitals are substantial economic engines in terms of jobs, state tax revenues, and economic growth," said AAMC President and CEO Darrell G. Kirch, M.D. “Although some medical schools and teaching hospitals have been grappling with reduced funding as a result of the recession, AAMC-member institutions have continued to be strong economic drivers for their communities, their states, and the nation.”
Full Text
MINNEAPOLIS / ST. PAUL (Dec. 15, 2009) - Minnesota’s medical schools and teaching hospitals had more than an $8.4 billion impact on the state’s economy in 2008, according to an Association of American Medical Colleges (AAMC) report on its member institutions. In Minnesota, member institutions include Mayo Medical School and the University of Minnesota Medical School as well as Abbott Northwestern Hospital, Hennepin County Medical Center, Regions Hospital, Saint Mary's Hospital, and the University of Minnesota Medical Center, Fairview.
Prepared for the AAMC by the consulting firm Tripp Umbach, the report found that Minnesota’s member institutions are responsible directly or indirectly for 65,430 jobs, and government revenue from various types of taxes contributes more than $496 million.
Other study findings for Minnesota include:
- Out of state medical visitor impact of $19.5 million
- Direct state business volume impact of more than $3.6 billion
- Capital improvements, goods, services and supplies of more than $1.8 billion
"U.S. medical schools and teaching hospitals are substantial economic engines in terms of jobs, state tax revenues, and economic growth," said AAMC President and CEO Darrell G. Kirch, M.D. “Although some medical schools and teaching hospitals have been grappling with reduced funding as a result of the recession, AAMC-member institutions have continued to be strong economic drivers for their communities, their states, and the nation.”
Medical schools and teaching hospitals benefit their communities and state beyond their economic impact. They care for patients in an environment where health knowledge and research continually evolve into new treatments and cures; educate the next generation of health providers; and serve as core providers of care for the uninsured.
On a national level, AAMC member institutions had an overall $512 billion impact on the country’s economy. This figure includes institutional and employee spending, and spending by patients (external to the hospital), their families, and visitors. These direct expenditures are recirculated in local economies as the initial recipients "re-spend" a portion of this income within a given state. Hence, for every dollar directly spent by a medical school or teaching hospital, an additional $1.30 is generated.
To read the complete report, "The Economic Impact of AAMC-Member Medical Schools and Teaching Hospitals, 2008," go to: www.aamc.org/economicimpact.
