Hospitals tout economic contribution

U.S. hospitals employ 5.5 million people and create $2 trillion in economic activity every year, the American Hospital Association (AHA) said Thursday.

In a new report, the AHA said hospitals are the second largest source of private sector jobs in the United States, and that they support 15 million total jobs with their spending on goods and services.

The estimates come weeks after hospitals suffered cuts in the deal to avoid the "fiscal cliff." Hospitals will pick up almost half of the $30 billion cost of deferring an automatic 27 percent Medicare cut to physicians that was set to hit Jan. 1.

After the deal was announced, AHA President and CEO Rich Umbdenstock lamented the cuts, saying they would "jeopardize hospitals' ability to care for seniors and their communities."

On Thursday, he warned lawmakers to consider hospitals' full contribution to the economy as they float plans to further reduce government spending.

"Hospitals provide vital healthcare services to their communities, but the importance of hospitals to their communities extends far beyond healthcare," Umbdenstock said.

"Congress should not overlook the economic contribution of hospitals as it considers further deficit reduction proposals," he said.

Thursday's report used an Avalere Health analysis of AHA survey data from 2011.

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