HOUSTON (Feb. 23, 2023) — A report released today by Harris Health System shows its public healthcare mission to be a prominent contributor to the Houston-area economy with an economic impact of $4.8 billion to Harris County alone, and another $900 million in impact spread across the state of Texas.
To quantify the economic impact generated by Harris Health within Harris County and the state of Texas, Harris Health retained independent consulting firm Tripp Umbach to measure its
economic impact and community benefit.
“This report allows us to provide our peers, community leaders and general public with specific details and verified data that illustrate the productive role Harris Health plays in the overall economic landscape of this county and the state,” says Harris Health President and CEO Esmaeil Porsa, MD. “Such a positive economic impact is extraordinary, especially when considering the challenges facing our hospitals and clinics over the past three years during the COVID-19 pandemic.
“We’ve always measured the health interventions we’ve provided members of our community, but this is the first time we’ve looked at what our system means to the economic health of our community.”
“Hospitals act as economic engines and generate huge financial impacts for the communities they serve,” says Patrick Jankowski, chief economist, Greater Houston Partnership. “In this instance, they are one of the largest employers in our community, and the report clearly shows the substantial financial benefit to the community that Harris Health’s hospitals and clinics provide.”
The report’s key takeaways, include:
- Every $1 Harris Health receives in ad valorem tax revenue generates $5.89 within the county’s economy.
- Harris Health supports 34,396 direct and indirect jobs throughout Texas, with 29,237 of those jobs in Harris County.
- One in every 70 jobs held by persons in Harris County is directly or indirectly related to Harris Health.
- Harris Health in FY2022 saved more than $1.8 billion in healthcare costs, resulting in $2.30 in healthcare cost savings to Harris County taxpayers for every $1 in county taxes collected.
“These numbers show our hospitals and clinics do much more than just provide quality medical care,” adds Porsa. “The employment and income generated and the ripple effect in other businesses throughout the economy are tremendous, providing a more than 5-to-1 return on local tax investment. The study clearly demonstrates that Harris Health is a major player in economic health of Harris County and Texas.”
Titled “The Economic Impact of the Harris Health System on Harris County and the State of Texas,” the study can be found on the organization’s website: harrishealth.org. The 30-page report measured Harris Health’s direct and indirect impact in the following categories:
- Business Volume Impacts (capital expenditures, operational expenditures and payroll)
- Direct, indirect and induced employment impacts
- State and local tax impacts
- Impact of employee spending (retail/merchandise, hospitality, etc.)
- Impact of visitor spending on the economy (wage premiums, job creation, etc.)
- Impact employees have on the community through charitable donations and volunteer work
- Impact of health improvement services