Connecticut hospitals contribute $17.6 billion to the state and local economies, according to a report released Monday by the Connecticut Hospital Association (CHA).
Connecticut hospitals spend $8.6 billion each year on staff salaries and the purchase of medical supplies and food, as well as facility construction. Â These dollars in turn create a “ripple effect” of another $9 billion as they move through the larger economy, generating additional jobs and spending in our communities, the report said.
Connecticut hospitals and health systems spend $628 million on buildings and equipment. This capital spending generates an additional $662 million in local economies each year.
“Hospitals make major contributions to both the economic health and quality of life of communities throughout Connecticut,” said Jennifer Jackson, CHA President and CEO. “Everyone knows that hospitals are always there when you need them, but few realize the tremendous contribution hospitals make to the state’s economy and to the financial well-being of our local communities. The major economic role played by hospitals has taken on even more importance given the state’s need for more jobs and strong economic development during these uncertain financial times.”
The report by CHA comes as the industry’s chief lobbying arm tries to ward off a proposed tax increase and $83 million in cuts to uncompensated care funds to hospitals.  Those cuts and taxes are part of Gov. Dannel P. Malloy’s two-year budget plan, which the CHA said would cause the state to lose $176 million in business activity, 1,417 jobs, and $63 million in salary and wages.
“This cut is wrong for hospitals and wrong for Connecticut,” Jackson said.
