ETR Staff Report
A new study has revealed how physicians throughout Texas have created and/or supported a whopping 670,000 jobs across the state. This economic injection has pumped almost $118 billion into Lone Star finances. This report, titled The Economic Impact of Physicians in Texas, comes from the American Medical Association (AMA) and the Texas Medical Association (TMA.) TMA President. Dr. Carlos J. Cardenas, MD, gave a thorough diagnosis of the implications of this medical bonanza.
“Everyone knows, whether in small towns or large cities, Texas doctors care for our communities’ health, but this study shows [how] these same physicians are vital to the economic health of those cities, towns and Texas as whole,” he said. “Texas physicians truly improve the health of Texans, but also clearly improve the health of Texas’ growing economy. It is remarkable.”
This study both reveals and quantifies the booster shot the state’s 51,333 active patient care physicians administer to Texas’ economy, producing a ripple effect spurring financial growth. Through four key indicators this report reveals the specific economic impact of doctors.
* Jobs. Physicians support 670,172 jobs statewide, an average of 13.1 per doctor.
* Economic activity. Physicians generate $117.9 billion in economic output, making up a full 7.3% of the state’s economy. This works out to $2.3 million per doctor.
* Wages and benefits. Physicians pay out $55.4 billion yearly in wages and benefits to various employees in the field of healthcare in Texas, sustaining a high-quality workforce. This comes to $1.1 million per doctor in wages and benefits.
* State and local tax revenue. Annually physicians create $3.5 billion in state and local tax revenues. This translates into $68,599 per doctor. These revenues help pay for schools, roads, the criminal justice system, and assorted health care services for all Texans.
“The positive impact of physicians extends beyond safeguarding the health and welfare of their patients,” said AMA President Dr. David O. Barbe, MD. “The Economic Impact Study illustrates that physicians are woven into their local communities and have a vital role in fueling state economies by creating jobs, purchasing goods and services, and supporting public services through the tax revenues they generate.”
The study also revealed that each dollar that is applied to physician services in Texas, $2.13 is produced in additional business activity. Every million dollars produced by physician practice supports 7.66 jobs above and beyond clinical and administrative personnel who work in doctors’ practices. Texas physicians do more to generate positive economic impact, create jobs and pay wages and benefits than does higher education, nursing and community care facilities, legal services, and home health.
Nationwide, doctors annually infuse $2.3 trillion into America’s economy, support 12.6 million jobs, pay out $1 trillion in workers’ wages and benefits, and contribute $92.9 billion in state and local tax revenues.
The TMA is the country’s largest state medical society. Its memberships include more than 50,000 doctors and medical students.