Report shows MI medical schools have major impact on local economy

The Association of American Medical Colleges released a report that states medical schools and teaching hospitals have a substantial economic impact within the counties and cities where they have operations.

According to the report, in 2005 these institutions had a collective impact of $450 billion on their states. The UM Medical School along with other academic medical centers across Michigan had a combined economic influence of $18.7 billion.

Michigan medical schools and major teaching hospitals were reported to be directly and indirectly responsible for more than 120,000 full-time jobs. UM’s Health System alone directly employs nearly 19,000 people.

According to the report, for every dollar spent by an academic medical institution an additional $1.30 was indirectly generated through outside businesses and individuals, resulting in a total impact of $2.30 per dollar.

Furthermore, Michigan’s medical schools and teaching hospitals generated more than $975 million in state tax revenue in 2005. This revenue came from a combination of income taxes, sales taxes and corporate income taxes as well as capital stock/franchise taxes paid by businesses that collect revenue from state institutions.

In addition, Michigan’s academic medical centers generated more than $660 million in out-of-state medical visitor-related revenue.

Click here to read the AAMC’s report, The Economic Impact of AAMC-Member Medical Schools and Teaching Hospitals.

Source: AAMC