Tanner Health System’s economic impact to the region is more than $724.6 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 2012 — the most recent data available — shows Tanner also created almost 5,150 full-time jobs in the region.
The impact represents a $58.3 million — or almost 9 percent — increase from the previous year’s impact. Much of the increase was owed to supply costs relating to establishment of the Tanner Multiple Sclerosis Center at Tanner Medical Center/Villa Rica, as well as improvement, expansion and maintenance of the health system’s facilities.
“We’re fortunate that Tanner has been in a position where it’s been able to grow,” 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 interested in consolidating services.”
According to the GHA report, four Georgia hospitals have closed since the beginning of 2013, and a fifth hospital has announced that it plans to close. According to GHA, 42 percent of all hospitals in Georgia have negative operating margins. The hardship is especially felt by Georgia’s rural hospitals, 60 percent of which lost money in 2012.
Much of the strain on hospitals in Georgia remains uncompensated care — services that the hospitals render and for which they receive no payment. In 2012, Georgia hospitals provided more than $1.6 billion in uncompensated care; about $60 million more than the previous year. Tanner itself provided $61.4 million in charity care last year. About 19 percent of all Georgians are without health insurance.
“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.
“Community support is essential to keeping health care in our region,” said Howard. “The $724.6 million in revenue Tanner has been able to turn back into the region’s economy is evidence that people 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 2012 — Tanner Medical Center/Carrollton led the system in economic impact with a total output of over $394 million injected into the region’s economy. The hospital generated more than 3,100 full-time jobs in the community and led to the contribution of almost $210 million in household income for area residents.
Tanner Medical Center/Villa Rica and Willowbrooke at Tanner generated more than $169 million in total output and helped generate more than 900 full-time jobs, contributing to a total household income of more than $53 million. Higgins General Hospital in Bremen generated almost $68 million in total output, more than 460 full-time jobs and household income of more than $28 million.
Tanner Medical Group, one of metro Atlanta’s largest multi-specialty physician groups, produced a total output of almost $93 million for the region’s economy, generated more than $60 million in total household earnings and more than 650 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 an almost $40 billion boost to the economy, employing more than 126,000 workers and indirectly creating more than 287,000 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.
“A lot of people have jobs in the community because of the hospital,” said Howard. “Tanner’s impact in our region reflects the importance of supporting local businesses, hiring local vendors and choosing local contractors. There are a lot of people — not just employees — who rely on the jobs and income that Tanner generates. 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.”