Sacramento Region Economic and Health Impact of Hospitals
April 2016

This report, commissioned by the Hospital Council of Northern and Central California, estimates the economic impact of hospital spending in the greater Sacramento area (Sacramento, Yolo, Placer, El Dorado, Yuba, Nevada and Sutter counties). The total economic impact on hospital spending in the greater Sacramento area is $14.3 billion.

This report shows that wages for health care professionals are 90 percent higher than average wages. And, job growth is progressing at a faster pace in health care than in the overall economy. Moreover, the sector’s high employment and strong wages for workers of all education levels provide economic stability for the community as a whole—even during recession like that of recent years.

Given that hospitals are the largest, or among the largest, employers in each of the communities they serve, they function not just as places of healing, but also form the foundation for a high quality of life. Health systems improve community health outcomes as well. As this report shows, hospitals and related facilities not only address the health of patients who enter within their walls, but they also thread health and wellness throughout the fabric of the entire community. By way of partnerships with many worthwhile non-profit and governmental agencies, they address social determinants of health such as homelessness, expand access to care, and help people transition into healthier lifestyles. Through community benefit programs, charity care, and providing under-reimbursed care, local health systems contribute approximately $1 billion of value to the Sacramento region.