Georgia hospitals contributed almost $25 billion to the state's economy in 1997, according to a report prepared by the Economic Forecasting Center at Georgia State University.

The report revealed Georgia hospital's direct expenditure was $8 billion in 1997, up from $7.6 billion in 1996.

However, when combined with an output multiplier developed by Dr. Donald Ratajczak of the Economic Forecasting Center, the total economic impact of those expenditures was $17.9 billion.

This output multiplier considers the “ripple” effect of direct hospital expenditures on other sectors of the economy, such as medical supplies, durable medical equipment and pharmaceuticals.

“Georgia hospitals and health systems have an enormous impact on the state's economy and are integrally interwoven in the fabric of local communities throughout this state,” said Joseph Parker, president of Georgia Health Association. “We hope this report resonates to the leadership of local communities, so that they understand the importance of maintaining healthy hospitals through health care policies and payments.”

However, Parker cited the need for increased federal, state and local financial support of hospitals and health systems.

“In 1997, Georgia hospitals provided more than $825 million in uncompensated care for indigent and charity patients, bad debt write-offs and taxes, which is $88 million higher than in 1996.”

Hospitals and health systems directly employ more than 130,000 people in the state and have a payroll that exceeds $3 billion annually.

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