A new study shows that the Lancaster General Health system had a $2.1 billion impact on Pennsylvania in 2015, supporting and sustaining 15,190 jobs and providing $83.9 million in state and local revenue.
“LG Health is an integral part of the state’s economy, generating revenue, jobs and spending,” said Jan L. Bergen, LG Health president and chief executive officer. “Studies like this capture only the impact that can be assigned a number. But the qualitative value and impact of the system goes far beyond its annual multi-billion-dollar economic impact. ”
The study was conducted by Tripp Umbach, included LG Health’s keystone facility, Lancaster General Hospital, its network of more than 300 employed physicians, Lancaster General Health Physicians, and facilities and services associated with its license, which include the Women & Babies Hospital and 14 outpatient centers, including the Downtown and Suburban outpatient pavilions.
The study also showed that LG Health employees contribute more than $16 million annually in charitable donations and volunteer service throughout the region.
The total economic impact of $2.1 billion includes dollars generated within Pennsylvania due to the presence of LG Health. This includes not only spending on goods and services with vendors in Pennsylvania and the spending of its staff and employed physicians, but also the business volume generated by businesses within Pennsylvania that benefit from LG Health’s spending.
The health system supports 15,190 jobs in Pennsylvania, both full-time and part-time. They include not only direct employment, but also jobs created by supply and equipment vendors, contractors and laborers for the construction and renovation of facilities and jobs created in the community at hotels, restaurants and retail stores in support of the system’s workforce and its visitors.
“It is a common misperception that non-profit organizations do not generate tax revenue. But that is not at all the case,” said Bergen. “Through our local spending, as well as direct and indirect support of jobs, the presence of the health system stabilizes and strengthens the local and statewide tax base and economy.”