Navicent Health Hospitals Generate $1.5 Billion for Local and State Economy

Staff Report From Middle Georgia CEO

Wednesday, March 30th, 2016

In 2013, Navicent Health hospitals in Bibb and Peach Counties generated $1,501,615,087  in revenue for the local and state economy according to a recent report released by the Georgia Hospital Association (GHA), the state’s largest hospital trade association. The report also found that, during the same time period, Navicent Health hospitals provided almost $70 million in uncompensated care while sustaining approximately 12,000 full-time jobs throughout Bibb and Peach Counties and the rest of the state. 

The Navicent Health hospitals included in the report are The Medical Center, Navicent Health; Medical Center of Peach County, Navicent Health; and Rehabilitation Hospital, Navicent Health.

GHA’s report revealed that Navicent Health hospitals had direct expenditures of almost $657 million in 2013. When combined with an economic multiplier developed by the United States Department of Commerce’s Bureau of Economic Analysis, the total economic impact of those expenditures was more than $1.5 billion. This output multiplier considers the “ripple” effect of direct hospital expenditures on other sectors of the economy, such as medical supplies, durable medical equipment and pharmaceuticals. Economic multipliers are used to model the resulting impact of a change in one industry on the “circular flow” of spending within an economy as a whole.

“Beyond providing care for the communities we serve, Navicent Health also plays a vital role in ensuring the economic health of our region. A local health system is indispensible, not only for the health and wellness of a community, but also as a major employer and economic engine. We are so appreciative for central Georgia’s unwavering support of Navicent Health and we will continue to ensure that the residents of this area have access to the best and safest healthcare services available,” said Dr. Ninfa M. Saunders, President and CEO of Navicent Health.

While Navicent Health remains a major component of the area’s economic engine, the health system’s leadership, like the rest of the Georgia hospital community, is concerned about a wide array of economic challenges that have made it increasingly difficult to meet the community’s healthcare needs including inadequate payments from government insurances Medicare and Medicaid and a growing uninsured and underinsured population. Presently, 41 percent of all hospitals in Georgia are operating with negative margins.

“We’re extremely concerned about the current operating environment for hospitals. We are committed to providing the access to the right care at the right cost, locally, for every patient. However, our ability to do so is being compromised when a growing number of our patients are either uninsured or severely underinsured,” said Dr. Saunders.

According to Saunders, state lawmakers must work to protect the state’s healthcare system with the same fervor that they do other initiatives like education and public utilities.

“It is our hope that that our elected lawmakers will do what is necessary to protect local healthcare systems and preserve access to healthcare for every resident of central Georgia,” said Saunders.