Oregon Hospitals Boon for State Economy, ECONorthwest Study Shows

LAKE OSWEGO, OR –– Community hospitals in Oregon continue to be a significant force driving the state’s economy, according to a study conducted by economic consulting firm ECONorthwest.

The Oregon Association of Hospitals and Health Systems, located at 4000 Kruse Way Place in Lake Oswego, released the study’s results March 29, showing state community hospitals provided and supported 117,000 jobs in 2015, accounting for $9.6 billion in economic output that year.

"(Wednesday’s) report shows the continued importance of Oregon's community hospitals to the well-being both of Oregonians and Oregon's economy," said Andy Van Pelt, executive vice president of OAHHS. "From Portland to Heppner, hospitals are an important cornerstone within Oregon communities for economic, social, and health reasons. However, proposed health care legislation at the state level creates an uncertain future for both community hospitals and the patients they serve."

The report showed more than 62,000 Oregon residents employed by community hospitals, with an added 55,000 jobs connected in various ways with those same institutions. All told, those jobs account for nearly 5 percent of the state’s total employment, the report revealed. And over the past few years that number has increased. Between 2013 and 2015, the report showed an increase in direct hospital employment by more than 2,500 jobs.

"Job growth in the healthcare sector has been robust during the past few years," said John Tapogna, president of ECONorthwest, which has offices in Seattle, Eugene, Boise, and Portland. "Urban and rural communities across the state benefit from healthcare jobs and operations, which support our aging population and provide middle and higher-income jobs."

Between the hospitals and the businesses that support them with goods and services, state and local governments collected roughly $553 million in tax revenue, the report showed.

"Oregon communities depend on hospitals for not only essential health care but also for the economic stability that these jobs provide," added Van Pelt. "Community hospitals are a vital source of sustainable, family-wage jobs and ensures that patients across Oregon have access to quality inpatient and outpatient care 24 hours a day, 365 days a year."

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