| Look at most any hospital in America and you'll find an engine of economic development, but not all are equal in their community benefit.
The economic impact of a hospital is felt locally, through direct spending on such things as payroll, purchase of goods and services, and the financing of new construction. A hospital also exerts indirect economic impact by being a magnet for other businesses that benefit from close proximity to such a dynamic and multi-faceted endeavor.
In addition, hospitals inevitably bring a significant "community benefit" to the communities they serve. This is a specific industry term that describes the broad variety of discretionary, benevolent activities that impact education and public welfare, as well as the quality of healthcare. Community benefit includes such things as providing charity care for the uninsured and providing vital healthcare, education, and research programs -- many of which operate at a loss -- for the community. It also includes the value of employees' personal involvement in civic, charitable or professional organizations.
National Leader: Giving Back
While no healthcare system is immune from the economic forces that affect other businesses, hospitals tend to be stabilizing forces in their communities. This is especially true of Carolinas HealthCare System (CHS), which continued throughout 2009 to expand facilities, enhance services and recruit new personnel.
This type of economic impact is multi-dimensional. Not only do hospitals generate payroll and purchase considerable amounts of goods and services, they also provide a significant "community benefit." This is a specific industry term that defines a wide variety of activities that not only enhance the quality of healthcare but support public education and welfare.
Community benefit includes such things as providing charity care for the uninsured, making financial assistance available for the underinsured, and underwriting a variety of services -- such as mental health -- that fulfill a vital need but do no pay for themselves. Community benefit also includes the value of direct support provided to local civic and charitable organizations by healthcare personnel.
|
|
