The Dallas-Fort Worth Hospital Council (DFWHC) published a report Monday that shows health care contributed $38.4 billion to the North Texas economy in FY 2022, a 25% increase from 5 years prior.
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The ‘Economic Impact of the Member Hospitals of the Dallas-Fort Worth Hospital Council on the State of Texas and the Dallas-Fort Worth Area’ report analyzed the direct economic contribution of 97 member hospitals/hospital systems, their capital expenditures, and construction activities, including jobs and labor income generated for the Dallas-Fort Worth area, and Dallas and Tarrant Counties.
It measured the economic impact of the goods and services upon state, county, sub-county, and local taxes as well as federal taxes.
In FY 2022, member hospitals created 372,988 jobs with a labor income of $26.3 billion, $1.4 billion in state and local taxes, and $4.4 billion in federal taxes.
Members hospitals’ total capital expenditure was $487 million in FY 2022 and $687 million in FY 2021, while total construction investment was $1.1 billion in FY 2022 and $1.5 billion in FY 2021. The report said the impacts of these hospital investments on the state, area, and county economies are often overlooked in broader economic discourse.
“Hospitals act as economic engines and generate huge financial impacts for the communities they serve,” said Stephen Love, President and CEO of DFWHC. “In many cases, they are one of the largest employers in a community. Economic developers frequently seek manufacturing and high technology industries that will create new jobs. The activities of the DFWHC-member hospitals are attracting these industries and must be recognized as a large contributor to the economy.”
The US Bureau of Labor Statistics projects the health care and social assistance sector to add 2.6 million jobs over the next decade, the most of any sector, with nurse practitioner jobs increasing by 45.7%.
Love advocated for policies that encourage the economic impact generated by hospitals.
“The continuation of the Medicaid 1115 Waiver and much-needed Medicaid expansion will improve coverage, access, and outcomes for many Texans,” he said. “Therefore, these initiatives must be given careful consideration in Austin and Washington, D.C. so hospitals can continue this beneficial economic impact.”