The 2013 economic impact of the 85 member hospitals of the Dallas-Fort Worth Hospital Council (DFWHC) on the North Texas economy is $14.4 billion in labor income, according to a study by Dr. Gerald A. Doeksen, regents professor at Oklahoma State University. This total shows a $2.2 billion increase in labor income from an identical study conducted in 2010. Both studies were commissioned by the DFWHC Board of Trustees, made up of executive officers from North Texas hospitals.
“We were impressed by the significant increase over the past two years,” said W. Stephen Love, president and CEO of DFWHC. “Such a positive economic impact is extraordinary, especially with the current challenges in healthcare reform facing hospitals today.”
Entitled “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,” the study showed hospital expenditures on retail sales contribute $4.6 billion, which produces $288.7 million in state sales taxes. DFWHC-member hospitals also generated 265,294 total jobs, an increase from 237,058 in 2010.
“These numbers show that North Texas hospitals do much more than just provide medical services,” said Dr. Doeksen. “The employment and income generated and the ripple effect in other businesses throughout the economy are enormous. The study clearly demonstrates that member hospitals of DFWHC are and will continue to be major players in the future economic development in Texas.”
Hospital systems participating included Baylor Health Care System, HCA North Texas Division, Methodist Health System, Texas Health Resources and Tenet Health Care System, as well as individual hospitals Children’s Medical Center Dallas, Cook Children’s Health Care System, JPS Health Network, Parkland Health & Hospital System, Texas Scottish Rite Hospital for Children, UT Southwestern University Hospitals and other North Texas hospitals.
Using a computer program developed specifically for the healthcare industry, Dr. Doeksen analyzed not only the direct economic contribution of hospitals and other providers, but also calculated how many jobs and how much payroll plus benefits (income) were created as a secondary effect. The jobs and income generated in other businesses are measured with employment and income multipliers derived specifically for the state of Texas, the Dallas-Fort Worth area, and Dallas and Tarrant Counties.
The hospitals had a significant impact on other county and state taxes in addition to the state sales tax. County residential property taxes were $395.8 million, state motor vehicle sales and manufactured housing sales $88.5 million, state motor fuel taxes $79.0 million and additional consumption taxes $57.7 million.
“Hospitals act as economic engines and generate huge impacts,” Love said. “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. Policies should be adopted to enhance and encourage the positive impacts generated by the hospitals to ensure continued expansion of economic growth for North Texas and the state.”