For Immediate Release
CONTACT: Megan Castonguay / VAHHS
/ (802) 223-3461 x107 / Megan@VAHHS.org
Candidates
Talk Jobs. Hospitals Have Them.
MONTPELIER, VT – Candidates all
over the state are campaigning that Vermont’s future depends on providing
quality jobs to Vermonters and a new report shows that hospitals are doing just
that. Vermont’s hospitals employ nearly 14,000 people – as an industry,
making it one of the largest employers in the state.
“Hospital employees account for
one out of every eighteen workers in Vermont,” stated M. Beatrice Grause, RN,
JD, president and chief executive officer of the association. “These jobs
contribute significantly to the daily economic well being of our communities
and the state.”
At a time when jobs are a
continuing concern for Americans and Vermonters, Vermont hospitals provide a
full-range of jobs – professional, technical and support roles – all with
competitive wages and essential benefits like health insurance, she
added. As an industry, hospitals in Vermont employ more FTEs than the ski
areas in Vermont combined.
A report compiled by the Vermont
Association of Hospitals and Health Systems shows that a total of 13,800 jobs,
excluding employed physicians, are provided by Vermont’s hospitals. A full
report on the economic impact of hospitals on the state of Vermont is slated
for release in a few weeks. Hospital employees help keep the economy going
through their purchasing power and payroll taxes.
“Additionally, for every job created in a hospital,
it supports another job in the community, like accountants and food
vendors. When these indirect jobs are included, hospital activity creates
almost 23,000 jobs,” Grause continued. “Hospitals are an important economic
partner in the State, not to mention that they also offer round-the-clock care,
365 days a year. Our doors are never closed.”
This year, hospitals will pay the
State more than $107 million in provider taxes, an amount that has increased
significantly in recent years. Despite this growing economic
contribution, the states’ net Medicaid payments to hospitals has declined.
State payments to hospitals are now well below cost and have contributed
to the emaciation of hospital margins to a razor-thin average of 1.9% - a
precarious financial cushion for such a complex business.
Last legislative session,
hospitals were asked to keep their expense growth to 4.5% - and they did.
Salaries and benefits are a hospital’s largest expense and one of the few
expenses they have control over. When meeting this new target in their
FY2011 budgets, hospitals looked closely at the number of employees and the
programs they run. So far this year, several hospitals have announced
layoffs, while others have asked employees to bear a larger share of their
benefit costs.
“When the elections are over, the
new Governor and new Legislature must ensure that hospitals are financially
viable. Hospitals have done their part to provide access to high value
health care and we need the state to do their part to help preserve health care
services and good jobs for Vermonters,” concluded Grause.
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