Physicians add opportunity, growth and prosperity to the Tennessee economy by creating 175,831 jobs and generating $29.1 billion in economic activity, according to a new report, The Economic Impact of Physicians in Tennessee, released Jan. 19, by the Tennessee Medical Association and the American Medical Association.
"It is important to recognize what the medical profession means to the communities where doctors live and work, and the economic impact to our state as a whole. We are proud of our colleagues who not only provide safe, quality, effective healthcare but also create and sustain jobs and help drive growth and prosperity," said Nita W. Shumaker, MD, Chattanooga pediatrician and TMA President.
The new study quantifies the economic boost that more than 14,000 Tennessee physicians provided to the state's economy, producing a ripple effect that is felt statewide. The study measures physicians' impact using four key economic indicators:
- Jobs:Physicians support 175,831 jobs in Tennessee - 12.5 for each physician, on average.
- Economic activity:Physicians generate $29.1 billion in economic output, comprising 9.2 percent of the Tennessee economy. Each physician generates $2.1 million for the state's economy, on average.
- Wages & benefits:Physicians contribute $13.7 billion in total wages and benefits paid to workers across Tennessee, empowering a high-quality, sustainable workforce. Each physician contributes $970,098 to workers' wages and benefits, on average.
- State and local tax revenue:Physicians' contribution to the Tennessee economy generates $908.1 million in state and local tax revenue for their communities-translating to $64,420 for each physician on average-that enables communities to make additional investments in infrastructure, government services and civic programs.
"The positive impact of physicians extends beyond safeguarding the health and welfare of their patients," said AMA President David O. Barbe, MD, MHA. "The Economic Impact Study illustrates that our physicians are woven into their local communities and have a vital role in fueling the state's economy by creating jobs, purchasing goods and services, and supporting public services through the tax revenue they generate."
The report found that every dollar applied to physician services in Tennessee supports an additional $2.02 in other business activity. An additional 7.5 jobs, above and beyond the clinical and administrative personnel that work inside the physician practices, are supported for each $1 million of revenue generated by a physician's practice. Tennessee physicians also generate more economic output, produce more jobs and pay more in wages and benefits than higher education, nursing and community care facilities, legal services and home health.
To learn more about the Economic Impact Study and view the Tennessee report in detail, please visit physicianseconomicimpact.org.