Cedars-Sinai Health System Generates Broad Economic Impact
Economic Impact Analysis Reveals That Health System Produced $15.4 Billion in Economic Benefit Across Southern California Economy in FY21
Cedars-Sinai Health System contributed $15.4 billion in economic benefit to Southern California in fiscal year 2021 by creating and supporting tens of thousands of jobs, fueling major construction spending and assisting numerous community benefit programs across the Los Angeles region, according to a new analysis.
The broad economic impact extended beyond the healthcare sector. Wages paid to Cedars-Sinai staff and payments for goods and services brought economic benefits to the regional economy, creating and supporting jobs in transportation, trade, insurance, manufacturing and other sectors.
In total, the health system provided or indirectly contributed to 81,680 jobs for workers who earned $6.5 billion in salary and benefits in FY21, according to the analysis by the Los Angeles County Economic Development Corporation.
The report captured the economic impact of Cedars-Sinai Health System on the region from July 2020 to June 2021. The system includes Cedars-Sinai Medical Center; Cedars-Sinai Marina del Rey Hospital; Cedars-Sinai’s many affiliates, including Torrance Memorial Medical Center and Huntington Health; and joint ventures, notably the California Rehabilitation Institute and Providence Cedars-Sinai Tarzana Medical Center.
“These results reflect Cedars-Sinai’s strength as an organization and dedication to our mission to serve our patients and our community as broadly as possible,” said Thomas M. Priselac, president and CEO of Cedars-Sinai Health System.
The healthcare sector is a vital economic engine of the region and will remain paramount as Southern California continues to experience economic uncertainty amid high inflation and the specter of a possible recession. Cedars-Sinai Health System is a stabilizing force for the regional economy, contributing to household incomes and growth in myriad ways.
Key highlights of the report:
- Cedars-Sinai devoted about $900 million to total community benefit spending through a variety of programs in FY21, continuing a legacy of supporting patients and community organizations in need. The support included more than $462 million from Cedars-Sinai Medical Center to subsidize the cost of services for patients with Medicare and Medi-Cal and those without health insurance, and more than $30 million in grantmaking to support more than 200 community organizations serving those in need. All of this spending yielded an estimated additional $504 million in total economic output.
- The health system affected a variety of sectors in FY21, fueling $879 million of activity in finance and insurance, $306 million in wholesale trade, $214 million in transportation and warehousing, and $171 million in manufacturing, among others.
- Construction spending at facilities in Cedars-Sinai Health System over the past five years generated more than $5.9 billion in total economic output.
Cedars-Sinai’s hospitals and affiliated healthcare organizations were among the major contributors to this economic activity in FY21:
- Cedars-Sinai Medical Center generated more than $9.9 billion in total economic output in Southern California; it supported 51,840 jobs with total labor income and benefits of $4.1 billion, leading to more than $453 million in state and local taxes.
- Cedars-Sinai Marina del Rey Hospital generated more than $265 million in total economic output in Los Angeles County and supported 1,370 jobs with total labor income and benefits of more than $114 million, leading to more than $11 million in state and local taxes.
- Torrance Memorial Medical Center generated more than $1.9 billion in total economic output in Los Angeles County and supported 9,940 jobs with total labor income and benefits of almost $835 million, leading to more than $82 million in state and local taxes.
- Huntington Health generated more than $1.4 billion in total economic output in Los Angeles County and supported 7,430 jobs with total labor income and benefits of more than $623 million, leading to more than $61 million in state and local taxes.
“Cedars-Sinai Health System was formed to bring together a collaborative network of high-quality healthcare institutions in Southern California to share resources and expertise to increase access to healthcare for the region’s residents,” Priselac said. “We are proud that the health system is also such an important driver of our regional economy by spurring investment and creating jobs for so many in healthcare and beyond.”
Read more on the Cedars-Sinai Blog: Cedars-Sinai Expands Global Presence