June 4, 2021 – In 2019, Southeast Georgia Health System hospitals
in Glynn and Camden counties generated more than $749,978,000 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 $326,105,000 in 2019. The total economic impact of those
expenditures was $749,978,000 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 $33,632,000
in uncompensated care while sustaining more than 1,855 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 4,732 jobs are supported across the state due to the Health
System’s economic activity. The hospital spent more than $146,803,000
in salaries and benefits, resulting in total household earnings in the
community of more than $293,592,000.
“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.”
Scherneck added, “Our hospital is open 24 hours a day, seven days
a week, and we treat anyone who comes through our doors. We realize that
we couldn’t possibly achieve our mission without our team members,
and we are very appreciative of their commitment. We’re proud to
serve as an economic engine and to be counted among the leading employers
in our region.”
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. One such factor is Georgia’s high uninsured population, which
was 13.4% in 2019 and the 11th-highest in the nation. The same year, 38%
of all hospitals in Georgia operated with negative total margins.
“We’re dedicated to ensuring our residents receive state-of-the
art health care services,” Scherneck said. “We provide quality
care to every patient, regardless of their ability to pay.”
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 in terms of treating patients
and maintaining its commitment to its employees, all while remaining financially
sound. As a not-for-profit Health System, we provide a great deal of uncompensated
care to patients who present at any of our numerous locations and at the
same time are responsible for approximately 2,750 jobs system-wide, and,
as such, 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.”
*This is the most recent data currently available from the Department of
Community Health