Tanner Health System Contributes Approximately $662.3 Million to Region’s Economy

Posted Date: 5/30/2012

Tanner Health System contributed almost $662.3 million to the region’s economy and created more than 5,300 full-time jobs in 2010, according to a new report from the Georgia Hospital Association (GHA).

The impact represents a more than 4 percent increase from 2009’s economic impact. The 2010 data is the latest available from the Georgia Department of Community Health.

“We are fortunate that, even as other healthcare systems struggle to cut costs and eliminate jobs, we’re able to continue growing and creating a positive impact on our region’s economy,” said Loy Howard, president and CEO of Tanner Health System. “In these difficult economic times, smaller health systems and independent hospitals in Georgia are struggling, and many are being acquired by larger health systems interested in consolidating services. That can limit a community’s access to care. By remaining financially strong and continuing to grow, we’re able to ensure that the services our residents need are available close to home.”

In 2010, more than half of Georgia hospitals lost money from the patient care they provided while more than a third of hospitals – 34 percent – operated with a negative total margin. The growing uncompensated care burden, coupled with years of federal and state cuts to Medicare and Medicaid, has many hospital executives throughout the state concerned about the future.

“The $662.3 million impact that Tanner represents would not have been possible without community support,” said Howard. “The dedication of our medical staff and our team of healthcare professionals – as well as the loyalty of our patients – enables Tanner to continue as an economic leader. This report highlights the importance of using local services and supporting local industries. Using local services creates local jobs and opportunities for our neighbors. Another aspect that makes this economic benefit figure even more compelling is that there are no local tax dollars required to generate this economic benefit.”

GHA compiles its annual Economic Impact Report to give a better view of how Georgia hospitals serve as vital economic engines for local and state economies. Figures provided by the Georgia Department of Community Health are processed through economic multipliers developed by the United States Department of Commerce’s Bureau of Economic Analysis to give a more accurate portrayal of how jobs and revenue generated by hospitals and health systems in Georgia actually impact their local economies.

Based on the hospital’s total direct expenditure – or how much money the hospital spent in 2010 – Tanner Medical Center/Carrollton led the system in economic impact with a total output of almost $367 million injected into the region’s economy. The hospital generated more than 3,500 full-time jobs in the community and led to the contribution of more than $200 million in household income for area residents.

Tanner Medical Center/Villa Rica and Willowbrooke at Tanner generated more than $133.3 million in total output, helped generate almost 800 full-time jobs and together contributed a total household income of more than $51.6 million. Higgins General Hospital in Bremen generated more than $69.4 million in total output, almost 500 full-time jobs and household income of almost $27 million.

Tanner Medical Group, one of metro Atlanta’s largest multi-specialty physician groups, produced a total output of more than $92.5 million for the region’s economy and generated almost $49 million in total household earnings and more than 540 full-time jobs.

According to Howard, the contribution of Tanner’s impact is all the more significant given the region’s economy.

“We haven’t seen economic conditions like this since the Great Depression,” said Howard. “We’re proud that Tanner has been able to remain a stable contributor to our region and help this area’s core economy. Tanner’s role in the economic wellbeing of our community has always been important, and we take that very seriously. There are a lot of people – not just employees, but contractors, vendors, medical office staff, and all their families – who rely on the jobs and income that Tanner generates.”

Tanner’s impact in the community extends further into job creation when it comes to attracting new economic prospects to the area.

“When a company is looking to relocate or expand into a new community, the first two things they consider are health care and education,” said Howard. “These two areas are fundamental parts of a sound economic development program. The presence of a robust healthcare industry and excellent schools give this region a competitive advantage over many other areas of the state.”

Statewide, Georgia hospitals contributed more than $38 billion in total economic impact, and created more than 329,700 full-time jobs and more than $15 billion in total household earnings.

“Georgia hospitals are known as the guardians of health care in our communities but they are also essential in helping protect the economic health of their communities,” said Georgia Hospital Association President Joseph Parker. “We’re proud of the fact that even in the worst economic times, the Georgia hospital community has stood tall and continued to served as a key economic engine and resource for jobs.”

Tanner Health System serves residents throughout west Georgia and east Alabama through three regional hospitals, inpatient and outpatient behavioral health services, a comprehensive cancer program, minimally invasive surgical services, a state-of-the-art cardiac program and more, as well as a medical staff of more than 300 physicians representing 34 medical specialties.

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