Navigate Up
UPMC/University of Pittsburgh Schools of the Health Sciences
Patients and medical professionals may call 1-800-533-UPMC (8762) for more information.

AAMC Study Shows Pennsylvania's Teaching Hospitals And Medical Schools Are A Major Economic Engine​

WASHINGTON, D.C., February 25, 2004 According to a new Association of American Medical Colleges (AAMC) report on the impact of medical schools and teaching hospitals, academic health centers in Pennsylvania are a significant economic force, impacting the state's economy to the tune of more than $26 billion in 2002.

The total economic impact of Pennsylvania's teaching hospitals and medical schools ranks second in the nation, trailing only the total impact of academic health centers in New York. Pennsylvania ranks ahead of California, Massachusetts and Texas in the top five.

"This report shows that, in Pennsylvania, academic health care is a critical component of the state's economy," states Paul Umbach, Tripp Umbach Healthcare Consulting, who produced the report for AAMC. "On a per capita basis, the economic importance of academic health care in the state is even more dramatic, when you consider the populations of New York and California-those states ranked in the top tier with Pennsylvania."

U.S. medical schools and teaching hospitals represented by the Association of American Medical Colleges (AAMC) had a combined economic impact of over $326 billion and employed one out of every 54 wage earners in the United States labor force during 2002, according to a new AAMC report. The AAMC represents 126 accredited U.S. medical schools and some 400 major teaching hospitals. The study, "The Economic Impact of Medical College and Teaching Hospital Members of the Association of American Medical Colleges," measures the financial contributions of the association's member institutions in the regions in which they are located and the nation as a whole.

In Pennsylvania, the AAMC's academic medical center member institutions reflected in the study are Penn State Milton S. Hershey Medical Center and Penn State College of Medicine (PSHMC/PSCOM) in Hershey, Pa.; the University of Pittsburgh School of Medicine and University of Pittsburgh Medical Center (UPMC) in Pittsburgh; and Philadelphia-based Drexel University College of Medicine; Jefferson Medical College of Thomas Jefferson University; University of Pennsylvania Health System and University of Pennsylvania School of Medicine; and Temple University School of Medicine and Temple University Hospital.

The report corrects a major misconception that medical schools and teaching hospitals do not generate revenue for their respective state governments. Although these institutions are generally not-for-profit, AAMC medical schools and teaching hospitals produced a total of $14.7 billion in state government revenues in 2002, with Pennsylvania accounting for more than $1.16 billion of that total. Within their states, these institutions also generate additional government monies by paying sales taxes, corporate net income taxes and capital stock/franchise taxes.

"This study demonstrates how our institutions play a crucial role in the economic well-being of their communities," said AAMC Division of Health Care Affairs Senior Vice President Robert Dickler. "By serving as major employers and generators of economic activity, the contributions of AAMC medical schools and teaching hospitals extend beyond their traditional missions of education, research and patient care."

One of the report's important findings is that medical schools and teaching hospitals are major employers in their home states, accounting for 2.7 million jobs directly or indirectly in 2002. More than half of these-1.5 million-were full-time positions. In Pennsylvania alone, the state's six AAMC member medical schools and closely-affiliated teaching hospitals account for approximately 205,000 jobs.

"It's clear that the future of academic medicine in Pennsylvania will have a lot to do with how economically strong the state will be fifteen to twenty years from now," states Umbach.

©  UPMC | Affiliated with the University of Pittsburgh Schools of the Health Sciences
Supplemental content provided by A.D.A.M. Health Solutions. All rights reserved.

For help in finding a doctor or health service that suits your needs, call the UPMC Referral Service at 412-647-UPMC (8762) or 1-800-533-UPMC (8762). Select option 1.

UPMC is an equal opportunity employer. UPMC policy prohibits discrimination or harassment on the basis of race, color, religion, ancestry, national origin, age, sex, genetics, sexual orientation, marital status, familial status, disability, veteran status, or any other legally protected group status. Further, UPMC will continue to support and promote equal employment opportunity, human dignity, and racial, ethnic, and cultural diversity. This policy applies to admissions, employment, and access to and treatment in UPMC programs and activities. This commitment is made by UPMC in accordance with federal, state, and/or local laws and regulations.

Medical information made available on UPMC.com is not intended to be used as a substitute for professional medical advice, diagnosis, or treatment. You should not rely entirely on this information for your health care needs. Ask your own doctor or health care provider any specific medical questions that you have. Further, UPMC.com is not a tool to be used in the case of an emergency. If an emergency arises, you should seek appropriate emergency medical services.

For UPMC Mercy Patients: As a Catholic hospital, UPMC Mercy abides by the Ethical and Religious Directives for Catholic Health Care Services, as determined by the United States Conference of Catholic Bishops. As such, UPMC Mercy neither endorses nor provides medical practices and/or procedures that contradict the moral teachings of the Roman Catholic Church.

© UPMC
Pittsburgh, PA, USA UPMC.com