New Jersey Physicians Boost the State’s Economy, Generating 281,923 Jobs
New study demonstrates that physicians drive $55.4 billion in economic activity
Lawrenceville, NJ– Physicians add opportunity, growth and prosperity to the New Jersey economy by creating 281,923 jobs and generating $55.4 billion in economic activity, according to a new report, The Economic Impact of Physicians in New Jersey, released today by the Medical Society of New Jersey (MSNJ) and the American Medical Association (AMA).
“This study focuses on the impact and economic benefits generated by New Jersey physicians and the significant role they play in boosting our state’s economy,” said Larry Downs, CEO of MSNJ. “The report looks beyond patient care and clinical aspects of physician practices to accurately gauge physician impact and measure economic activity. This year, the findings show that physicians across New Jersey continue to be drivers of local economies and viable sources of job creation, which has a positive effect on our state as a whole.”
The study quantifies the economic boost that 22,697 active patient care physicians provide to the state’s economy, producing a ripple effect that is felt statewide. The study measures physicians’ impact using four key economic indicators:
Jobs: Physicians support 281,923 jobs in New Jersey–12.4 for each physician on average.
Economic activity: Physicians generate $55.4 billion in economic output, comprising 9.8 percent of the New Jersey economy. Each physician generates $2.4 million for the state economy on average.
Wages & benefits: Physicians contribute $30.9 billion in total wages and benefits paid to workers across New Jersey, empowering a high-quality, sustainable workforce. Each physician contributes $1.4 million to workers’ wages and benefits on average.
State and local tax revenue: Physicians’ contribution to the New Jersey economy generates $2.7 billion in state and local tax revenue for their communities–translating to $116,922 for each physician on average–enabling community investments to be made.
“The positive impact of physicians extends beyond safeguarding the health and welfare of their patients,” said AMA President David O. Barbe, M.D., M.H.A. “The Economic Impact Study illustrates that physicians are woven into their local communities and have a vital role in fueling state economies by creating jobs, purchasing goods and services, and supporting public services through the tax revenue they generate.”
The report found that every dollar applied to physician services in New Jersey supports an additional $2.02 in other business activity. An additional 6.30 jobs, above and beyond the clinical and administrative personnel that work inside the physician practices, are supported for each one million dollars of revenue generated by a physician’s practice. In addition, New Jersey physicians generate more economic output, produce more jobs and pay more in wages and benefits than Higher Education, Nursing and Community Care Facilities, Legal Services, and Home Health.
Across the country, physicians add $2.3 trillion to the U.S. economy, support more than 12.6 million jobs nationwide, contribute $1 trillion in total wages and benefits paid to U.S. workers, and generate $92.9 billion in state and local tax revenue.