Every $1 spent by a hospital generates $2.24 in total economic activity
the staff of the Ridgewood blog
Paramus NJ, While New Jersey hospitals are world-renowned for life-saving medical care, a landmark new report reveals they are also the primary engine driving the Garden State’s financial health.
According to the 2025 Economic Impact Report released by the New Jersey Hospital Association (NJHA), the state’s 70 acute care hospitals generated a staggering $34.6 billion in direct economic benefits and supported over 162,000 healthcare jobs in a single year.
The “10 World Cups” Effect
To illustrate the scale of this financial infusion, NJHA President and CEO Cathy Bennett offered a striking comparison:
“The boost our hospitals provide in a single year is like hosting 10 World Cups right here in New Jersey. Their impact goes far beyond the bedside; hospitals are economic playmakers for our state.”
By the Numbers: The Hospital Economy
The report, which analyzed 2023 data, highlights how deep the hospital “spending” reaches into local communities:
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$12 Billion in Salaries: Hospital employee wages account for nearly 60% of hospital budgets, fueling local spending in every NJ county.
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$5.5 Billion in Purchased Services: Hospitals support a massive web of local businesses, from food service and construction to IT and landscaping.
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$664.8 Million in Taxes: State income taxes paid by hospital employees provide a vital revenue stream for New Jersey’s public services.
The Multiplier Effect: Turning $35 Billion into $78 Billion
The true power of the healthcare sector lies in its “multiplier effect.” Using formulas from the U.S. Bureau of Economic Analysis, the report shows that hospital spending ripples through the economy far beyond the hospital walls:
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The Job Multiplier: Every 1 hospital job supports an additional 1.5 jobs in other sectors. This means the 162,000 healthcare workers actually sustain a total of 398,000 jobs statewide.
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The Output Multiplier: Every $1 spent by a hospital generates $2.24 in total economic activity. When these ripples are added up, New Jersey hospitals contribute to a total of $78 billion in statewide economic activity.
A Cornerstone of Local Communities
The 2025 report serves as a reminder that when a local hospital thrives, the surrounding town thrives. Hospitals are often the largest employers in their respective counties, providing stable, high-paying jobs that remain resilient even during economic downturns.
For residents interested in seeing how their local facility contributes, the NJHA has provided a full breakdown of data by hospital, county, and legislative district on their official website.
About the NJHA
The New Jersey Hospital Association is a non-profit trade organization representing over 400 members. Their mission is to ensure that all New Jerseyans have access to affordable, high-quality healthcare while maintaining the state’s position as a national leader in medical innovation and economic stability.
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Tags: #NewJersey #NJEconomy #HealthcareJobs #NJHA #EconomicImpact #GardenState #PublicHealth #Hospitals #NJNews
The quality of healthcare here in Bergen County is the primary reason I have not moved to Florida