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Hospitals Vital to Local Economy, Says Hospital Council of Western Pennsylvania

Thursday, September 18, 2003

DUBOIS, Pa., Sept. 18 /PRNewswire/ -- Hospitals in Brookville, Clearfield, Dubois, Elk and Punxsutawney provide vital economic support to the region through employment and also through support of local businesses and service providers. Total hospital spending of hospitals in this region amounts to more than $239 million according to a new economic impact study released earlier this week.

"Our region has always looked to healthcare as a vital part of each community both in terms of providing access to care, and in terms of economic impact," said Ed Kengersky, chairman of the Board of Directors of Punxsutawney Area Hospital. "It is extremely important that we work with our legislators to restore these funds."

The new study, The Hospital Sector's Contribution to the Pennsylvania State Economy, released by the Hospital and Healthsystem Association of Pennsylvania (HAP), was researched and written by the Penn State Cooperative Extension and the Pennsylvania Office of Rural Health on HAP's behalf.

"This economic support is now at great risk because the current state budget has deep cuts in Medical Assistance," said Kent Hess, chief executive officer of Clearfield Hospital. "Hospitals in this region are major employers, and in turn, support local businesses which are vital to the economy."

The study also showed that the five hospitals together employ 2,930 people directly, with total salaries of more than $107 million. The hospitals included in these statistics are Brookville Hospital, Clearfield Hospital, DuBois Regional Medical Center, Elk Regional Medical Center and Punxsutawney Area Hospital.

One local business owner, David Stern, president and chief executive officer of Paris Companies, has seen growth in employment at his company, directly related to the support of local hospitals. "Because we have such strong, vital healthcare facilities such as hospitals and nursing homes, Paris Healthcare Linens in DuBois has been able to provide employment opportunities to 150 people in the area," Stern said. "In turn, these jobs help stimulate the local economy through consumer spending."

Local legislators noted the importance of the relationship between hospitals and the creation of jobs in the community. "The relationship between the growth at Paris Healthcare Linen and the local hospitals is an excellent example of the impact of hospitals on local job growth and businesses," said Senator Joe Scarnati, (R-25). "As state legislators, we need to continue to support these types of relationships."

Representative Sam Smith, (R-66) and House Majority Leader, also expressed interest in the issue. "I am very mindful of the key roles hospitals play in contributing to rural economies and am committed to helping sustain these vital industries," said Representative Smith and House Majority Leader. "In past years I have supported funding for our local hospitals and will continue to advocate on their behalf."

Hospital Council of Western Pennsylvania is a regional association representing hospitals and other health care providers in the 30-county area of western Pennsylvania. The Hospital and Healthsystem Association of Pennsylvania is a statewide association.

SOURCE Hospital Council of Western Pennsylvania

CONTACT: Patricia Jurczak of Hospital Council of Western Pennsylvania, +1-724-772-7202, or email, jurczakp@hcwp.org