For Immediate Release
March 28, 2011
Contact: Pam Udall
phone: (512) 370-1382
cell: (512) 413-6807
phone: (512) 370-1381
cell: (512) 656-7320
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Your doctor’s office provides a healthy dose of economic medicine while it cures what ails you.
Physicians’ medical practices have a tremendous positive impact on Texas’ economy, according to a new study conducted by the Texas Medical Association (TMA) and the American Medical Association (AMA). In 2009, Texas’ medical practices contributed billions of dollars in economic activity and supported nearly a quarter of a million jobs. Office-based physicians play a vital role in the state’s economy by providing jobs, purchasing goods and services, and generating tax revenue.
“Texas physicians not only save lives, we create jobs too,” said TMA President Susan R. Bailey, MD. “Doctors’ offices are significant contributors to the Texas economy.”
In the four major areas the study highlights, the 42,613 Texas physicians have significant economic impact:
- Jobs: Physicians support almost 250,000 jobs in Texas (the average office-based Texas physician supports 5.8 jobs in the economy, including his or her own);
- Output: Physicians contribute $63.6 billion in economic output or sales revenue, representing 5.6 percent of the total gross domestic product in Texas;
- Wages & Benefits: Physicians in Texas generate $39.4 billion in wages and benefits; and
- Taxes: Physicians generate nearly $2.1 billion in state and local tax revenue in Texas.
“Physicians improve the health of their patients and also the economic health of their local communities and the state,” said Dr. Bailey. “Texans benefit directly when the state creates a positive practice environment for doctors, and attracts and keeps physicians here.”
The number of jobs that Texas physicians support is about the same as the total number of new jobs the Texas Workforce Commission reports that the state has added in the economic recovery of the past year.
Nationwide, physicians’ medical practices support 4 million jobs, contribute $1.4 trillion in economic output/sales revenue, generate $833.1 billion in wages and benefits, and contribute $62.9 billion in state and local tax revenue.
AMA and TMA commissioned The Lewin Group to conduct the study, The State-Level Economic Impact of Office-Based Physicians Report. Three primary data sources were used to evaluate the economic impact of physician offices: the AMA Masterfile of physicians, the Medical Group Managers’ Association Cost Survey, and the IMPLAN economic impact modeling system.
The study examined the economic impact of office-based physicians -- physicians’ medical practices, whether solo or group, that care for patients. The study’s authors define the direct output of an industry as the total sales revenue produced by that industry in any given year, or for office-based physicians, the total value of medical and non-medical revenues generated by office-based physician practices (from the cost of providing patient care to revenue from parking fees). They define jobs as the combination of physicians, support staff, and nonphysician health care providers. The value of direct wages and benefits includes compensation and benefits paid to physicians, nonphysician staff, medical practice owners, and any other staff on payroll. The taxes figure combines taxation on medical practice employee income, proprietor income, indirect business interactions, households, and corporations. Tax revenues are included from physician offices (direct) and from other affected industries (indirect) to determine the “total” tax revenues supported by the medical practices.
TMA is the largest state medical society in the nation, representing more than 45,000 physician and medical student members. It is located in Austin and has 120 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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