New study demonstrates physicians generate $78.6 billion in economic activity
April 16, 2014
Physician practices add value to Texas' economy by producing tens of billions of dollars in revenue each year and providing hundreds of thousands of jobs. "The National Economic Impact of Physicians," a new study conducted for the American Medical Association (AMA) and state medical societies, found Texas' 48,314 practicing physicians boost the state's economy by supporting 522,619 jobs and generating $78.6 billion in economic activity.
Texas Medical Association (TMA) President Stephen L. Brotherton, MD, says, "Unlike last week's Medicare payment data dump, these numbers are supported by solid analysis and reported in rich context. The bottom line is that Texas' physician practices, without a doubt, are good for the economic health of our communities and our state."
The economic benefit of doctors' offices goes beyond the hundreds of thousands of direct jobs they support, including the quite-quantifiable ripple effect of those jobs and tax dollars through the local economy.
"Physicians carry tremendous responsibility as skilled healers charged with safeguarding healthy communities, but their positive impact isn't confined to the exam room," said AMA President Ardis Dee Hoven, MD. "The new study illustrates that physicians are strong economic drivers that are woven into their local communities by the economic growth, opportunity, and prosperity they generate."
The findings in Texas cover these four key economic barometers:
- Jobs: Each physician supported an average of 10.8 jobs and contributed to a total of 522,619 jobs statewide.
- Output: Each physician generated an average of $1,627,498 in economic output and contributed to a total of $78.6 billion statewide.
- Wages and Benefits: Each physician supported an average of $890,990 in total wages and benefits and contributed to a total of $43 billion statewide.
- Tax Revenues: Each physician supported $52,618 in local and state tax revenues and contributed to a total of $2.5 billion statewide.
The report found that Texas physicians generate significantly more economic output (i.e., medical and nonmedical sales revenues) than the legal industry; produce more jobs than colleges, universities, and nursing homes combined; and pay more in wages and benefits than all Texas hospitals.
Across the country, the nation's 720,000 practicing physicians support 9.9 million jobs, generate $1.6 trillion in economic activity, support $775 billion in wages and benefits, and generate $65.2 billion in state and local tax revenue. To view the full national report and an interactive map of the United States, visit www.ama-assn.org/go/eis.
"The National Economic Impact of Physicians" was prepared for the AMA by IMS Health.
TMA is the largest state medical society in the nation, representing more than 47,000 physician and medical student members. It is located in Austin and has 112 component county medical societies around the state. TMA’s key objective since 1853 is to improve the health of all Texans.
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