U.S. physicians created 12.6 million jobs and generated $2.3 trillion in economic activity in 2015, according to a new report released by the American Medical Association.
“Physicians' contribution to state and national economies shows that their impact on communities is felt far beyond the exam room,” Dr. David O. Barbe, president of AMA, told HCB News.
A total of 736,873 patient care physicians were practicing within the 50 states and District of Columbia as of December 2015. On average, each of them supported 17.1 jobs and generated $3.2 million.
The direct benefit that physicians have on the economy is the output, jobs, wages and benefits, and taxes that they generate within their offices, explained Barbe. The indirect benefits are the money they spend on supplies and equipment, practice administrative services, cleaning and property maintenance services, and clinical lab services.
“Additional indirect benefits arise when employees spend their earnings as part of their everyday life to support local businesses which pay their employees and pay taxes,” he added.
According to the report, physicians contribute $1 trillion in total wages and benefits paid to workers across the country, which equates to an average of $1.4 million per physician. They also fostered $92.9 billion in state and local tax revenue for their communities.
The AMA is hoping these findings get in the hands of key health care policymakers, legislators and thought leaders. Barbe believes this report underscores the need to build a “strong and vibrant” physician workforce.
“An investment in the physician workforce is an investment in economic development,” he said.
