Each of the nation's almost 639,000 office-based physicians supports 6.2 jobs (including his or her own) and $2.2 million in “economic activity,” resulting in a collective economic impact of 4 million jobs and $1.4 trillion in 2009, according to a new report (PDF) released by the American Medical Association's Advocacy Resource Center.
AMA: Office docs support $1.4 trillion in economic activity
The report, The State-Level Impact of Office-Based Physicians: Overview Report, was developed using the AMA Masterfile, the Medical Group Management Association cost survey, and the MIG Inc.’s input-output modeling system used for estimating wages, benefits and other regional “employment multipliers.”
The average office-based physician supported $1.3 million in wages and benefits, the report said, which add up to $833 billion across the nation. And, according to the report, revenue and earnings generated by an individual physician office contributed an average of nearly $100,000 in annual state and local taxes, which added up to $401 million in 2009. (This includes Social Security, state and local income taxes, gift and estate taxes, personal property taxes, fines, fees, corporate and dividend taxes, and “indirect” business taxes such as property and sales taxes, motor vehicle licensing, special assessments and business licenses.)
The report also included a breakdown of these figures for individual states. The states with most office-based doctors were California and New York. The almost 78,400 office-based physicians in California supported economic activity of almost $138 billion and generated more than 458,000 jobs, more than $106 billion in wages and benefits, and more than $7.2 billion in taxes, according to the report. New York’s almost 51,000 office-based doctors supported more than 287,000 jobs and economic activity of $81.9 billion, according to the report.
“This study illustrates that office-based physicians contribute to both the health of their patients and also to the economic health of their communities,” AMA President Dr. Cecil B. Wilson said in a news release.
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