April 30, 2019 – In 2017, Southeast Georgia Health System hospitals
in Glynn and Camden counties generated more than $639,491,000 in revenue
for the local and state economy, according to a recently released report
by the Georgia Hospital Association, the state’s largest hospital
trade association. Southeast Georgia Health System had direct expenditures
of more than $273,438,000 in 2017. The total economic impact of those
expenditures was $639,491,000 when combined with an economic multiplier
developed by the United States Department of Commerce’s Bureau of
Economic Analysis. This output multiplier considers the “ripple”
effect of direct hospital expenditures on other sectors of the economy,
such as medical supplies, durable medical equipment and pharmaceuticals.
Economic multipliers are used to model the resulting impact of a change
in one industry on the “circular flow” of spending within
an economy as a whole.
During the same time period, the Health System provided approximately $25,655,000
in uncompensated care while sustaining more than 1,673 full-time jobs
(this does not include team members at the Health System’s two Senior
Care Centers or more than 50 physician practices). When a U.S. Department
of Commerce multiplier is applied to the jobs number, it is revealed that
an additional 4,135 jobs are supported across the state due to the Health
System’s economic activity. The hospital spent more than $225,312,000
in salaries and benefits, resulting in total household earnings in the
community of more than $443,505,000.
The other affiliated entities accounted for additional expenditures in
excess of $97,000,000 in 2017, which results in a further economic impact
of over $227,000,000.
“Our mission is to provide safe, quality, accessible and cost-effect
health care to meet the health needs of the communities we serve,” said
Michael D. Scherneck, president and chief executive officer. “This includes Glynn and
Camden counties, as well as our surrounding communities in Brantley, Charlton,
McIntosh and Wayne counties. In addition, we’re proud to serve as
an economic engine and to be counted among the leading employers in our
region. We realize that we couldn’t possibly achieve our mission
without our team members, and we are very appreciative of their commitment.”
Southeast Georgia Health System is a major component of the area’s
economic strength; however, the hospital’s leadership, like the
rest of the Georgia hospital community, is concerned about economic challenges
that affect the hospital’s ability to deliver timely and efficient
care. A fast-growing uninsured population and inadequate payments from
government insurance programs like Medicare and Medicaid have made it
increasingly difficult to meet the community’s health care needs.
In 2017, 44 percent of all hospitals in Georgia operated with negative
total margins.
“Our hospital is open 24 hours a day, seven days a week, and we’re
dedicated to ensuring our residents receive state-of-the art health care
services,” Scherneck said. “We are constantly challenged with
making sure each patient receives quality care regardless of their ability
to pay. This environment often puts financial stress on our state’s
hospitals.”
According to Scherneck, every community needs nearby access to a strong,
vibrant health care system that will not only meet the health care needs
of its residents, but also attract other industries and businesses to the area.
“Southeast Georgia Health System is the primary guardian of health
care in our community,” said Scherneck. “A healthy community
depends on the strength of its hospital, both financially and in treating
patients. As a not-for-profit Health System that is responsible for approximately
2,500 jobs system-wide, as well as providing more than $25,655,000 in
uncompensated care, it is our hope that our elected officials will join
us in our efforts to protect our health care system and preserve access
to health care for every resident of southeast Georgia.”