The ISMA has newly released data from the AMA that can help show office-based physicians play a vital role in Indiana’s economy. If you run a local medical practice, you now have results to indicate that you support jobs and the purchase of goods and services, while also generating tax revenue.
In 2009, office-based physicians across Indiana contributed $14.7 billion in economic activity and supported 66,409 jobs, an average 5.8 jobs per physician. See the chart below for data from specific areas of the state.
An economic study like this one tracks the reach of revenues generated by a business or spending program on a community.
“We’ve known that access to medical care improves the health of Hoosiers and adds value to their lives,” said Brent Mohr, M.D., ISMA president. “This report demonstrates how office-based physicians add to the economic health of our state as well.”
In Indiana, office-based physicians supported $9.6 billion in wages and benefits and generated $581.4 million in taxes. Physicians clearly stimulate local economies. Every dollar in patient care revenues creates a $1.50-$2 value in the community. Furthermore, every physician job is associated with 4-6 additional jobs in the community.
“Physicians are not often recognized as important business people in their local cities and towns,” noted Dr. Mohr. “This data helps empower us in our interactions with legislators, policymakers and other opinion leaders, as we try to influence decisions on health care and the delivery of health-related services in Indiana.”
Undertaken for the AMA by The Lewin Group, the study found that compared to other industries, office-based physicians almost always contribute more to state economies than each of the following industries: hospital, legal, nursing home and home health.
The report provides information about the economic impact of office-based physicians in all 50 states and the District of Columbia. Findings show the economic impact of office-based physicians as measured through sales revenue, jobs, wages and benefits, and tax revenue.
Physicians also give back to their communities by providing charity care. In 2008, doctors nationwide provided an estimated $24.4 billion in charity care.
To view the full report, please visit the AMA website.
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