Physicians boost economic health in Delaware

Physicians add opportunity, growth and prosperity to the Delaware economy by creating 25,791 jobs and generating $4.8 billion in economic activity, according to a new report, The Economic Impact of Physicians in Delaware, by the Medical Society of Delaware and the American Medical Association.

The report, published in January 2018, details the economic value physicians in the First State bring in job creation, wages, and state and local tax revenue. "Delaware physicians have long been major contributors to the state economy, but physicians and their practices are often viewed in isolation," said Medical Society of Delaware President Richard W. Henderson, MD. "While Delaware physicians are exceptional at providing compassionate, quality healthcare for patients as well as leading the way in medical innovation, their economic contribution is vital for our state and local economy."

The study quantifies the economic boost that 2,286 Delaware 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, economic activity, wages and benefits, and state and local tax revenue.

• Physicians support 25,791 jobs in Delaware – 11.3 for each physician on average.
• Physicians generate $4.8 billion in economic output, comprising 7 percent of the Delaware economy. Each physician generates $2.1 million for the state economy on average.
• Physicians contribute $2.4 billion in total wages and benefits paid to workers across Delaware, empowering a high-quality, sustainable workforce. Each physician contributes $1.1 million to workers' wages and benefits on average.
• Physicians' contributions to the Delaware economy generate $164.6 million in state and local tax revenue for their communities, translating to $72,015 for each physician on average, and 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, MD, MHA. "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 Delaware supports an additional $1.85 in other business activity. An additional 5.71 jobs, above and beyond the clinical and administrative personnel who work inside the physician practices, are supported for each $1 million of revenue generated by a physician's practice. In addition, Delaware 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.

To view the full report and an interactive map, go to www.PhysiciansEconomicImpact.org.