The Impact of Stony Brook University Hospital on the Economy and the Community – January 2016*
Hospitals are integral to strengthening and supporting social and family infrastructures of local communities.
Those communities rely on local healthcare systems to:
- deliver high-quality healthcare to the communities they serve regardless of ability to pay.
- allocate scarce healthcare resources strategically when an emergency or disaster strikes.
- bring life into the world.
- care for the aged and provide comfort at the end of life.
- proactively educate the community about the impact of lifestyle choices on their health and well-being.
- enable communities to be stronger and more productive.
This 2016 report, prepared with assistance from the Healthcare Association of New York State (HANYS), highlights the significant economic role Stony Brook University Hospital plays within our local community. It identifies and measures our direct impact on the local economy, and demonstrates the “ripple” effect of the dollars the healthcare sector brings into the community and the jobs we help create. In addition, it illustrates the benefit our hospital provides to help ensure a safe, stable, and healthy community.
Stony Brook treats more than 100,000 patients annually through the Emergency Department, plus more than 800,000 outpatients. Approximately 34,000 patients are admitted to the hospital each year, and more than 4,300 babies are delivered.
Hospitals across New York State are participating in a national initiative – Partnership for Patients – aimed at improving quality of care and making healthcare safer by reducing hospital-acquired conditions and readmissions. New York’s program was recognized as one of the nation’s highest performing programs, and it was highlighted by a U.S. Department of Health and Human Services report in 2014.
Beyond the Scope of Healthcare
Stony Brook University Hospital is a critical component to the economic viability of our community. From the people we employ to the direct and indirect effects of spending, our impact as an economic engine is substantial. In addition, substantial indirect spending takes place further “downstream” in the economy, providing a sizeable contribution to federal, state, and local tax revenue.
In 2014, Stony Brook University Hospital contributed significantly to the area’s economic health, providing an estimated total annual economic impact of $2,189,000,000. Statewide, the economic activity generated by hospitals – through jobs and the purchasing of goods and services – makes up more than 10 percent of the state’s Gross Domestic Product.
SBUH also stimulates the economy by generating $292 million in tax dollars, with more than 6,300 jobs.
Like all hospitals, Stony Brook relies on state and federal funding to provide care. Because of underpayments from Medicaid and Medicare, Medicaid only pays for 76 cents of each dollar of care, while Medicare only pays 97 cents.
*SOURCE: Healthcare Association of New York State