Navicent Health Generates $1.6B for Local and State Economy
Tuesday, May 15th, 2018
In 2016, Navicent Health hospitals in central Georgia generated $1,599,457,541in revenue for the local and state economy, according to a recently released report by the Georgia Hospital Association, the state’s largest hospital trade association. During the same time period, Navicent Health provided $69,980, 089 in uncompensated care while sustaining more than 12,000 full-time jobs throughout central Georgia and the state.
Navicent Health also had direct expenditures of more than $695 million in 2016. The total economic impact of those expenditures was more than $1,599,457,541.00 when combined with an economic multiplier developed by the United States Department of Commerce’s Bureau of Economic Analysis. 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.
“At Navicent Health, we are not only committed to the health and wellness of the residents in the communities we serve, but we also play an integral role in guarding and enhancing our region’s economic health. We are thankful for central Georgia’s partnership with our health system and will continue to work to ensure area residents have access to the highest quality, affordable and equitable healthcare services available, close to home,” said Dr. Ninfa M. Saunders, FACHE, President and CEO of Navicent Health.
Navicent Health is a major component of the area’s economic strength. However, the hospital’s leadership, like the rest of the Georgia hospital community, is concerned about economic challenges that affect the health system’s ability to deliver timely and efficient care. A fast-growing uninsured population and inadequate payments from government insurance programs like Medicare and Medicaid have made it increasingly difficult to meet the community’s healthcare needs. In 2016, 40 percent of all hospitals in Georgia operated with negative total margins.
“We are extremely concerned about the current operating environment for hospitals,” said Dr. Saunders. “We have made a commitment to all citizens of this region to be available 24 hours a day, 365 days a year, providing high quality care when needed, and providing that care close to home. A hospital’s ability to provide that care is compromised when an increasing number of patients are either uninsured or severely underinsured,” said Dr. Saunders.
According to Dr. Saunders, every community needs nearby access to a strong, vibrant healthcare system that will not only meet the healthcare needs of its residents, but also attract other industries and businesses to the area.
“Our local healthcare system is not only the primary guardian of health in our community, but also a major economic engine in this area that is directly responsible for the creation of 12,069 jobs according to GHA’s latest report,” said Dr. Saunders. “We are most appreciative of the elected officials who continue to pursue and support our efforts to protect our healthcare system and preserve access to healthcare for every resident of central Georgia.”