GHA study finds Phoebe Putney Health System generates $1.2 billion economic revenue

ALBANY — Phoebe Putney Health System generated more than $1.2 billion in revenue for the local and state economy in 2014, according to a recent report by the Georgia Hospital Association.

The report by the state’s largest hospital trade association determined that the health system provided nearly $60 million in community benefit while supporting more than 10,000 full-time jobs in Southwest Georgia and the state that year.

“A hospital is an important part of a community’s infrastructure, and this report shows that Phoebe continues to have an enormous positive impact on Southwest Georgia’s economy by providing steady job growth while improving the health and wellness of the communities we serve,” Joel Wernick, president/CEO of Phoebe Putney Health System, said.

Phoebe had direct expenditures of more than $531 million in 2014, according to the report. Combined with the economic multiplier developed by the U.S. Department of Commerce’s Bureau of Economic Analysis, the total economic impact was more than $ 1.2 billion.

The multiplier takes into account the ripple effect direct hospital expenditures have on other parts 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.

“We are very appreciative of the ongoing support our local hospitals receive, and we will continue to work hard to ensure the residents in the communities we serve have access to the best and highest quality health care,” Wernick said.

With medical facilities throughout the state facing concerns about economic challenges such as Medicare and Medicaid payments and a fast-growing uninsured population, PPHS in 2014 provided $59.8 million in community benefits, including charity and uncompensated care.

Health System hospitals included in the report were Phoebe Putney Memorial Hospital, Phoebe Sumter Medical Center, Phoebe Worth Medical Center and Southwest Georgia Regional Medical Center. A breakdown of the economic impact of each in 2014, according to GHA, shows (community benefit numbers include charity and uncompensated care):

— Phoebe Putney Memorial generated a total economic impact of more than $1 billion on $461.2 million in direct expenditures. The hospital supported 7,974 full-time jobs while also providing nearly $50 million in community benefits;

— Phoebe Sumter in Americus generated a total economic impact of more than $126 million on $55.3 million in direct expenditures. The hospital supported 1,025 full-time jobs while also providing more than $7.6 million in community benefits;

— Phoebe Worth in Sylvester generated a total economic impact of more than $18.8 million on $8.2 million in direct expenditures. The hospital supported 538 full-time jobs while also providing nearly $2 million in community benefits.

— Southwest Georgia Regional in Cuthbert, which is managed by Phoebe, generated a total economic impact of more than $14 million on $6.1 million in direct expenditures. The hospital supported 513 full-time jobs while also providing approximately $1.2 million in community benefits.

Statewide, GHA said Georgia hospitals in 2014 generated nearly $43.6 billion for the state’s economy, provided nearly $1.8 billion in uncompensated and charity care, and supported more than 364,800 full-time jobs.