AAMC: Med schools, teaching hospitals generate $562B, 3.1% of GDP
Not far from any policy debate is the oft-repeated fact that healthcare makes up one-sixth of the U.S. economy. Newly published research took a deeper dive to investigate the impact of medical schools and teaching hospitals. And, as one would guess, they contribute a lot of the American economy.
The report, conducted by RTI International on behalf of the Association of American Medical Colleges (AAMC), claims medical schools and teaching hospitals account for 3.1 percent of gross domestic product, add $562.3 billion to the economy and employ 6.31 million people. These figures include direct, indirect and induced resources. An indirectly added value, for example, would be money spent by an employee of an AAMC school at a movie theater or restaurant.
The study was published online March 28. The AAMC comprises 151 accredited medical schools and nearly 400 teaching hospitals and health systems.
“Medical schools and teaching hospitals are important economic contributors to their communities and play crucial roles educating tomorrow’s doctors, providing cutting-edge patient care, and conducting groundbreaking research,” said Darrell G. Kirch, MD, AAMC president and CEO. “This analysis shows just how vital these institutions are as economic engines at the local, state, and national levels in generating jobs, paying wages, and supporting business and community development opportunities.”
New York has the most jobs tied to these organizations, with some 545,000, while California (481,000) and Texas (331,000) rounding out the top three.
The study also stated $25.4 billion in GDP is related to research, with $4.49 billion coming from California.
The complete report is available for download here.
Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.