New study reports University Hospitals is a major economic engine

Tuesday, June 01, 2021

Contributes nearly 67,000 direct and indirect jobs; pumps $10.3 billion into state and regional economies

CLEVELAND -- University Hospitals continues as a major economic driver in Northeast Ohio and the state of Ohio, according to a new economic impact report.
 
UH’s system of medical and health centers and physician offices generates nearly 67,000 direct and indirect jobs supporting nearly 45,000 households.
 
The system contributes $10.3 billion to the regional economy and $4.4 billion of labor income to the state of Ohio. 
 
The UH system directly employed 27,755 individuals in 2019, the year the new report covered. The system’s joint venture partners employed an additional 2,979 individuals for a total of 30,734 individuals whose employment was tied to UH in 2019. In addition, UH’s construction activities supported an estimated 790 jobs, for a total of 31,524 total permanent and construction jobs in 2019. These direct jobs sustained an additional 35,163 indirect jobs, resulting in a total of 66,687 Ohio jobs supported by the system. For every direct UH job, approximately 1.12 additional jobs are supported in Ohio.
 
“For 155 years, University Hospitals has been guided by a strong commitment to civic and social responsibility, leveraging its role as an anchor institution to build physical and economic health for the community,” said Cliff Megerian, MD, CEO, University Hospitals. “Our goal is to be the most trusted health care partner. Because we know there is a direct correlation between population wealth and population health, this aim to be the most trusted includes driving strategic initiatives that create jobs and produce meaningful labor income. In turn, this fosters economic growth, which ultimately aids in keeping our Northeast Ohio population healthy.”
 
The report, authored by Silverlode Consulting, covers calendar year 2019.
 
The households supported by UH spend about $3 billion purchasing goods and services in Ohio. Additionally, UH purchased $664.1 million in goods and services from Ohio vendors in 2019.
 
Although UH is a not-for-profit organization, the system’s operating and construction activities resulted in the generation of $370.4 million of state and local taxes in 2019.
 
Between 2017 and 2019, UH invested an average of $93.5 million per year in Ohio to construct and improve facilities. The system’s investment in construction supported approximately 1,305 construction and other jobs and an estimated $77.6 million in total labor income, including benefits, annually. The construction activity generated nearly $6.7 million in state and local taxes per year. UH’s construction activity directly and indirectly supported $181.4 billion of economic activity in the State of Ohio per year.
 
Some of the notable recent and current UH capital projects included in the report were:
 
• Construction of the UH Rainbow Center for Women and Children, a $26 million, state-of-the-art women and children's health, which opened in 2018.
 
• Renovation and expansion of surgical services at UH Parma Medical Center campus, a $27.5 million project which broke ground in 2019.
 
• Construction of a new, $17 million ambulatory health center at UH Richland Health Center.
 
• Renovation of UH Elyria Medical Center, an $11.2 million transformational project which commenced in 2019 and is expected to open in 2021.
 
• A $236 million planned expansion of UH Ahuja Medical Center campus, including a 216,000 square foot hospital building and 78,000 square foot sports medicine complex.
 
On top of the $10 billion economic impact mentioned in the report, UH benefits the community in numerous other ways that generate significant economic and fiscal impacts. Examples of this include involvement in “hire local, live local and buy local” efforts such as Step Up to UH, a jobs pipeline program; Greater Circle Living, an employee-assisted housing program; Evergreen Cooperatives, which creates local green jobs; and New Bridge Cleveland, which provides career training for adults and after school classes for urban high school students.
 
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