Economic Impact Report (Statewide)
New Jersey Hospitals: A Big Win for State & Local Economies
New Jersey hospitals are the ultimate goalkeepers for our patients and communities. They don’t just defend health – they’re also world class in creating jobs and opportunity. New Jersey hospitals deliver 162,000 jobs and $34.6 billion in economic impact across our state. The economic boost provided by our hospitals is the equivalent of hosting 10 World Cups right here in New Jersey.
Hospitals’ jobs and economic output are a win-win for the Garden State. Our state scores big, thanks to the exponential effect of hospital operations and wages across other businesses and industries. This multiplier effect supports a grand tally of 398,000 jobs and $78 billion in economic activity – the kind of teamwork New Jersey businesses, manufacturers and government budgets count on.
Breaking It Down:
- New Jersey hospitals directly contributed $34.6 billion to the state’s economy during 2023.
- Hospitals create economic opportunity by providing 162,000 full- and part-time jobs.
- Hospital employees earn $12 billion in salaries, creating spending power statewide.
- Other businesses in New Jersey and beyond benefit from $5.5 billion in commerce with hospitals.
Find the 2025 Economic Impact Report press release here.
Use the search below to find customizable reports of hospitals’ contributions by facility, county, legislative district and more.
Total Economic Impact: $34.6 billion
-
Total direct employment of 162,000 full- and part-time positions; 125,000 full-time equivalent jobs, including:
Pathology and Laboratory:
3,245
Dietary/Housekeeping/Maintenance:
10,203
Total Employee Payroll:
$12 billion
NJ Income Taxes Paid by Employees:
$664.8 million
-
Purchased Services of
$5.5 billion, including:
Contracted Labor: $3 billion
Pharmaceutical Drugs: $2.0 billion
Dietary/Laundry/Housekeeping Supplies: $189.1 million
Building Supplies: $47.3 million
Utilities: $276.7 million
including:
$160.1 million
in Electric
$64.2 million
in Oil & Gas
$52.5 million
in Water/Sewage/Disposal
Effect on Jobs in Overall Economy1
398,000
Effect on Overall Economic Output1
$78 billion
- Hospitals also give back to the community by serving as the primary source of medical services for the state's
662,000
uninsured, thus serving as the healthcare safety net for the most needy.
- In
2023, uninsured patients presented at
New Jersey Hospitals
on
1.3 million
occasions.
- New Jersey's general hospitals are predominantly not-for-profit entities — any excess revenue over expenses is returned to the community in the form of new medical technology, expanded hospital services, maintenance and expansion of physical infrastructure and the enhanced ability to hire and maintain skilled workforce.
New Jersey Hospitals pay
$222.6 million
annually in taxes including:
- 0.53 Percent Assessment:
$188.9 million
- Adjusted Admissions Assessment:
$18.5 million
- Newborn Screening Fees:
$15.2 million
- Other assessments such as New Jersey Poison Information & Education System (NJPIES) and Maternal and Child Health Consortium Assessment
- In addition, hospitals support their local municipalities through voluntary, negotiated payments and in-kind contributions.
1 The goods and services hospitals purchase from other businesses create additional economic value for the community, as estimated through the use of “multipliers” by which spending in one sector affects other sectors. For employment, these ripple effects mean that each hospital job results in a total of 2.5 jobs in the overall economy as hospital employees use their wages to purchase goods and services, which in turn creates income and jobs for other businesses. Similarly, each dollar spent by a hospital results in a total of $2.25 in overall economic output. New Jersey hospitals thus support approximately 398,000 total jobs and over $78 billion in economic activity statewide.
Source for multipliers: American Hospital Association, “Impact of Community Hospitals on U.S. Economy; All States, DC, and Total U.S., 2022,” Nov. 2024; analysis based on multipliers from the U.S. Bureau of Economic Analysis’ Regional Input–Output Modeling System (BEA RIMS-II)
|
|
