Tanner Health System’s economic impact to the region is more than $796.8 million in revenue for the local economy, according to a new report.
The annual Economic Impact Report from the Georgia Hospital Association (GHA), using data from 2014 — the most recent data available — shows Tanner also created almost 6,479 full-time jobs in the region.
The impact represents a $45 million — or 6 percent — increase from the previous year’s impact.
“We have embarked on a tremendous period of growth as a health system, which is unique for a community health system in Georgia at this time,” said Loy Howard, president and CEO of Tanner Health System. “Many smaller health systems and independent hospitals throughout Georgia are struggling, and many are being acquired by larger health systems that want to consolidate services.”
According to the GHA report, five Georgia hospitals have closed since the beginning of 2013, and many others have scaled back their services and access to care. According to GHA, 57 percent of all rural hospitals in Georgia have negative operating margins, and four out of every 10 hospitals in Georgia lost money.
Much of the strain on hospitals in Georgia remains uncompensated care — services that the hospitals render and for which they receive no payment. In 2014, Georgia hospitals provided more than $1.75 billion in uncompensated care; about 9.4 percent more than the previous year.
“We’re fortunate to have a robust, vibrant and locally operated health system in west Georgia and east Alabama, so we can keep making important decisions regarding the health of our region locally,” Howard said.
Howard said Tanner’s strength lies in its strong relationship with the communities it serves, and the health system’s growing impact reflects its emergence as a true regional healthcare provider.
“As we expand our services, we’re also becoming a destination for people beyond Carroll and Haralson counties,” said Howard. “Our new hospital facility in Wedowee will also send a greater number of people requiring advanced medical care into Carroll and Haralson counties from Alabama, bringing more dollars into this area. The almost $800 million in revenue Tanner has been able to turn back into the region’s economy is evidence that people from Carroll, Haralson, Heard and beyond continue to trust us with their health. As a nonprofit healthcare organization, their support translates into investments in new facilities and services, new technology and more jobs for our area.”
GHA compiles its annual Economic Impact Report to provide a better view of how Georgia hospitals serve as vital economic engines for local and state economies. Figures provided by the Georgia Department of Community Health are processed through economic multipliers developed by the United States Department of Commerce’s Bureau of Economic Analysis to give a more accurate portrayal of how jobs and revenue generated by hospitals and health systems in Georgia actually impact their local economies.
Based on the hospital’s total direct expenditure — or how much money the hospital spent in 2014 — Tanner Medical Center/Carrollton led the system in economic impact with a total output of more than $446 million injected into the region’s economy. The hospital generated more than 4,236 full-time jobs in the community and led to the contribution of almost $231 million in household income for area residents.
Tanner Medical Center/Villa Rica and Willowbrooke at Tanner generated more than $183 million in total output and helped create almost 900 full-time jobs, contributing to a total household income of more than $70 million. Higgins General Hospital in Bremen generated more than $72 million in total output, more than 630 full-time jobs and household income of over $28 million.
Tanner Medical Group, one of metro Atlanta’s largest multi-specialty physician groups, produced a total output of more than $94 million for the region’s economy, generated more than $61 million in total household earnings and almost 720 full-time jobs.
According to Howard, the contribution of Tanner’s impact reflects the importance of using local services and supporting local industries.
“The dedication of our medical staff and our team of healthcare professionals — as well as the loyalty of our patients — enables Tanner to continue as an economic leader,” said Howard. “Using local services creates local jobs and opportunities for our neighbors. Another aspect that makes this economic benefit figure even more compelling is that Tanner generated this impact while receiving no local tax dollars.”
Statewide, Georgia hospitals represented a $43.6 billion boost to the economy, employing more than 160,000 workers and indirectly creating more than 364,000 full-time jobs. Often, hospitals are some of the largest employers in a community, such as in Carroll County where Tanner is the No. 2 largest employer, behind Southwire Co.
“There are a lot of people — not just employees — who rely on the jobs and income that Tanner generates,” said Howard. “Tanner’s impact in our region reflects the importance of supporting local businesses, hiring local vendors and choosing local contractors. That’s an obligation we take very seriously.”
Tanner’s impact on job creation extends even further when it comes to attracting new economic prospects to the region, since access to good health care and good schools are among the major considerations of companies that consider establishing operations in a region.
“Health care and education are fundamental parts of a sound economic development program,” said Howard. “That gives the region a significant competitive advantage over many other areas of the state.”
More information about Tanner Health System is available in About Us.
Photos
Top right: Chris Toomey, of Carrollton, works with physical therapist Susie Coats at Tanner Medical Center/Carrollton.
Bottom right: Derrell Kirby, of Wadley, Ala., begins preparations to be released from the hospital with help from April Harper, RN, on 1 West inside Tanner Medical Center/Carrollton.