Report: Sonoma Valley Hospital has $104 million economic impact
Sonoma Valley Hospital generates $104 million in total economic activity and supports 658 jobs within the hospital and in other business sectors, according to a new study commissioned by the hospital.
“Hospitals in general are an important part of the economic engine for a region, and Sonoma Valley Hospital is a strong contributor both in the Sonoma Valley and throughout Sonoma County,” said Philip King, Ph.D., the author of the report. Another finding: SVH has provided $1.5 million in unreimbursed and charity care over the past three years, much of it going to disadvantaged populations.
Hospital spending benefits a region in a number of ways, according to Dr. King. SVH’s recent facility upgrades and expansion, for example, created close to 100 construction jobs with a related $16 million in economic activity annually over the last three years. Hospital spending also created nearly 80 jobs in real estate, restaurants and employment services, which was responsible for more than $9 million in economic activity last year.
The $104 million total includes both the direct and indirect economic impacts of SVH spending, while the 658 jobs generated include both hospital employees and jobs created in the region through that spending. SVH reported total payroll of $26 million in fiscal 2014, and operating revenues of $50.5 million, a 10 percent increase from 2011.
“I’m confident that the hospital will make even bigger contributions over time because it is in a stronger financial position today that it has been in more than a decade,” said Kelly Mather SVH CEO. “(It) has made significant progress toward financial stability over the past five years by increasing revenue, reducing costs, paying down debt, upgrading the physical plant, and improving technology.”
The report also notes that health care employment is especially valuable from an economic standpoint because these jobs contribute twice the country average for wages and salaries, and are more stable during economic downturns.
