Last modified: Friday, October 16, 2009
IU School of Medicine and teaching hospitals provide significant economic impact
FOR IMMEDIATE RELEASE
October 16, 2009
INDIANAPOLIS -- The Indiana University School of Medicine and its affiliated hospitals boosted the area economy by an estimated $7.96 billion in 2008, according to a study released by the Association of American Medical Colleges.
Altogether, the association's member medical schools and teaching hospitals had a combined economic impact of $512 billion and accounted for more than 3.3 million full-time jobs in the 46 states (and the District of Columbia) where the association's member schools are located.
The IU School of Medicine and its affiliated teaching hospitals -- Clarian Health, Roudebush Veterans Administration Hospital and Wishard Health Services -- accounted for more than 52,000 full- and part-time jobs, according to the report. Physicians providing care at those hospitals include IU School of Medicine doctors and residents, young physicians who are receiving training in their areas of specialty.
The report estimates that spending by out-of-state patients and their visitors from outside Indiana totaled $56 million, not including money spent directly at the hospitals or the school itself. According to the Indiana Clinic physician group, patients traveled to Indianapolis for care by IU School of Medicine physicians from the 49 other states, Puerto Rico, the U.S. Virgin Islands and 25 other countries in 2008.
The overall economic impact of institutions such as IU School of Medicine on Indiana and the national economy takes into account the direct and indirect business volume generated by medical schools and teaching hospitals, including institutional spending; employee spending; and spending by patients, their families, and visitors (excluding spending for patient care and medical services). According to the report, every dollar spent by a medical school or teaching hospital indirectly generates an additional $1.30 when it is "re-spent" on other businesses or individuals.
The AAMC report, "The Economic Impact of AAMC-Member Medical Schools and Teaching Hospitals," does not include the economic impact of patient care-related spending at hospitals, nor does it account for the economic benefits of physician training programs and community service programs. This report was prepared for the AAMC by the consulting firm Tripp Umbach.
For a copy of this report, go to: www.aamc.org/economicimpact.