Fayetteville, Ga. (June 18, 2012) – Piedmont Fayette Hospital generated over $387 million in revenue for the local and state economy in 2010, according to a recent report by the Georgia Hospital Association (GHA). The report also included the cost of uncompensated care to be $10 million, including unpaid costs of Medicaid and Medicare during the same time period.
In addition, the report shows Piedmont Fayette Hospital sustained 2,903 jobs throughout Fayetteville and the rest of the state and had direct expenditures of over $167.5 million in 2010. 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 $387 million. 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.
“Given the current state of the economy, we’re proud to be able to provide the jobs and business opportunities we do,” said Darrell Cutts, CEO of Piedmont Fayette Hospital. “Our hospital is an integral part of Fayette County and the surrounding communities and is the foundation for quality of life. So many patients trust us with their lives and to restore their loved ones’ health. It’s nice to give back to the community that supports us.”
While Piedmont Fayette Hospital remains a major component of the area’s economic engine, the hospital’s leadership, like the rest of the Georgia hospital community, is concerned about a wide array of economic challenges that lie ahead, including continued federal and state cuts in Medicare and Medicaid payments to providers and a fast-growing uninsured and underinsured population.
“Presently, more than a third of all hospitals in Georgia are operating with negative margins,” said Cutts. “There are definite challenges that come when there is a growing demand for care and an increasing number of patients who are uninsured or underinsured, but we’ve been providing much-needed healthcare services to the community for 15 years at Piedmont Fayette and look forward to providing these services for many years to come.”