Healthcare Financial News

As more Americans worry about a slowing economy, a new study highlights the important role hospitals play in supporting a strong and stable economy. Hospitals employ more than 5 million people and rank second as a source of private sector jobs, according to a TrendWatch report released April 7 at the American Hospital Association’s (AHA) annual meeting in Washington.

The new report, Beyond Health Care: The Economic Contribution of Hospitals, found that hospitals:

• Employ more than 5 million people
• Directly or indirectly support one of every 10 jobs in the United States
• Remain a stable source of employment, even during times of economic stress
• Support nearly $1.9 trillion of economic activity

Also included is a detailed state-by-state analysis of the economic contributions hospitals make to the communities they serve. Read the report.

Both very small firms (fewer than 25 employees) and very large firms (more than 100 employees) have greater health insurance burdens than do medium-sized firms (25 to 99 employees).

That unexpected finding was revealed in a study of trends in the economic burden associated with health insurance provision for small and large businesses during 2000-05, conducted by researchers from the Kauffman-RAND Institute for Entrepreneurship Public Policy. Their research brief--Is the Economic Burden of Providing Health Insurance Greater for Small Firms Than for Large Firms?--was published on the RAND web site April 3.

Firms with fewer than 25 employees spent 11 percent of payroll on health insurance, and firms with 100 or more employees spent 10 percent. On the other hand, firms with 25-49 employees spent only 7 percent. The researchers found no evidence that either small or large firms dropped coverage during the period studied. The analysis did reveal that smaller firms offer health coverage of slightly lower quality than that offered by larger firms. Read the research brief.