Introduction

Nashville, Tennessee is widely recognized as the healthcare capital of the United States. In fact, more than 500 health care companies are based in the state’s capital alone. In the Volunteer State, 180,532 people are employed in hospitals alone. These professionals provide patient care, educate community members, perform research, and more for the benefit of the entire state.

Who They Are

The Tennessee Hospital Association (THA) advocates for hospitals, health systems, and healthcare organizations across Tennessee. They knew that “hospitals often are among the largest employers and serve as economic engines in their communities and counties,” however they were interested in quantifying the specific overall positive economic impact that their members and industry bring to the Tennessee communities they serve.

What They Knew

The THA came to IMPLAN with their employment and payroll numbers and the locations of all member facilities. They sought to quantify the economic impact that their Tennessee facilities have in communities state-wide. With the help of IMPLAN, they found that the nearly $6 billion dollars in annual payroll to almost 100,000 THA member employees generate more than $8.5 billion in total economic impact statewide. The THA also demonstrated the impact that hospitals have in each of the 95 counties across the state. Further, IMPLAN showed that THA’s payroll investment subsequently supports a sizable supply chain in each locale, essentially expanding THA’s positive economic impact.

Selection of Hospital Impacts in Tennessee*

*Economic impact analyses were performed for each county with a hospital in the state of Tennessee. Figures for all 95 represented counties can be found here.

What They Discovered

With this granular insight, the THA validated that their member hospitals weren’t just supporting the public wellbeing, but were also a driving economic force in the Volunteer State. Using IMPLAN, they took their payroll investment and employment numbers and were able to quantify the economic importance that their members represent. With this data in hand, the THA took action advocating the value of their members to legislators and leaders in each locale. They identified member hospitals in specific voter districts to ensure that legislators and local leaders understood the comprehensive economic value of the healthcare industry. The members of the Tennessee Hospital Association create economic opportunity everyday, IMPLAN allowed them to demonstrate it.