Claxton-Hepburn generates nearly $140 million in economic activity a year, hospital report says
OGDENSBURG -- A report from Claxton-Hepburn Medical Center and the Healthcare Association of New York State estimates the hospital generated $138,787,000 in economic activity.
Based on figures from 2010, the report shows the hospital employed 660 people, with a total payroll of $44,451,000. When that money is circulated through the local economy, that payroll generates an estimated $81,008,000 in economic activity.Claxton-Hepburn spends an estimated $28,955,000 per year on goods and services, which they believe generates about $52,768,000 in the local economy, as it flows to vendors and other businesses which, in turn, buy goods and services, the effect rippling throughout the economy.
In 2010, Claxton-Hepburn spent $2,750,000 on buildings and equipment, providing an estimated $5,011,000 in economic activity for the local economy.
Claxton-Hepburn employees and the people in jobs supported indirectly by the facility paid $7,646,000 in federal income tax, $2,565,000 in state and local income taxes, $1,968,000 in local sales tax, and $1,711,000 in New York State sales tax, as estimated by the report.
HANYS based its estimates of the hospital’s economic benefits to communities on the Regional Input-Output Modeling System II developed by the U.S. Department of Commerce, Bureau of Economic Analysis (BEA). This model calculates the “ripple” throughout the local economy of any economic sector’s spending. This is known as the multiplier effect. After consultation with BEA, HANYS used the final demand multipliers for output (total economic impact).
Direct effect multipliers for employment were used to ascertain job creation. Direct effect multipliers for earnings were used to determine tax contribution.