Phoebe Putney Health System generates $1.2 billion for local, state economy
ALBANY — Phoebe Putney Health System (PPHS) generated more than $1.2 billion in revenue for the local and state economy in 2014, according to a recent report by the Georgia Hospital Association (GHA), the state’s largest hospital trade association. The report also found that, during the same period, the health system provided nearly $60 million in community benefit while supporting over 10,000 full-time jobs throughout Southwest Georgia and across the state.
“A hospital is an important part of a communities’ infrastructure and this report shows that Phoebe continues to have an enormous positive impact on Southwest Georgia’s economy by providing steady job growth while improving the health and wellness of the communities we serve,” said Joel Wernick, president/CEO of Phoebe Putney Health System.
The report revealed that PPHS had direct expenditures of over $531 million in 2014. When combined with the economic multiplier developed by the United States Department of Commerce’s Bureau of Economic Analysis, the total economic impact of those expenditures was more than $ 1.2 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. 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 are very appreciative of the ongoing support our local hospitals receive and we will continue to work hard to ensure the residents in the communities we serve have access to the best and highest quality healthcare,” added Wernick.
While Phoebe remains a major component of the area’s economic engine, the health system, like the rest of the Georgia hospital community, is concerned about a wide array of economic challenges such as cuts in Medicare and Medicaid payments and a fast-growing uninsured population. In 2014, PPHS provided $59.8 million in community benefits, which includes charity and uncompensated care.
The PPHS hospitals included in the report are Phoebe Putney Memorial Hospital, Phoebe Sumter Medical Center, Phoebe Worth Medical Center and Southwest Georgia Regional Medical Center. Below is the economic impact each of the hospitals generated in 2014 according to GHA:
• Phoebe Putney Memorial Hospital, located in Albany, generated a total economic impact of more than $1 billion on $461.2 million in direct expenditures. The hospital supported 7,974 full-time jobs in the Dougherty County area and across the state while also providing nearly $50 million in community benefits, including charity and uncompensated care.
• Phoebe Sumter Medical Center in Americus generated a total economic impact of more than $126 million on $55.3 million in direct expenditures. The hospital supported 1,025 full-time jobs in Sumter County and across the state while also providing over $7.6 million in community benefits, including charity and uncompensated care.
• Phoebe Worth Medical Center in Sylvester generated a total economic impact of more than $18.8 million on $8.2 million in direct expenditures. The hospital supported 538 full-time jobs in Worth County area and across the state while also providing nearly $2 million in community benefits, including charity and uncompensated care.
• Southwest Georgia Regional Medical Center, located in Cuthbert and managed by Phoebe, generated a total economic impact of over $14 million on $6.1 million in direct expenditures. The hospital supported 513 full-time jobs in the Cuthbert area and across the state jobs while also providing approximately $1.2 million in community benefits.
Statewide, GHA said Georgia hospitals in 2014 generated nearly $43.6 billion for the state’s economy, provided nearly $1.8 billion in uncompensated and charity care, and supported more than 364,800 full-time jobs.