COURT HOUSE — In the current uncertain times, Cape Regional Medical Center plays a huge part in the community’s economy, and a recently released report details the magnitude of that impact.
According to the New Jersey Hospital Association’s (NJHA) 2008 Economic Impact Report, the state’s hospitals pumped $18 billion into the economy of which Cape Regional, this county’s sole hospital, contributed nearly $107 million, including over $18 million in purchased services.
“Banks can tighten access to mortgages and capital loans. Investors can abandon Wall Street. Consumers can put the brakes on automobile purchases,” the introduction to the report stated.
“But even in a recession, individuals continue to depend on their community hospitals – perhaps even more so as rising unemployment claims more individuals’ health insurance. Hospitals are economic strongholds. They are dependable sources of jobs, income taxes and spending through good times and bad. And they provide a vital public service to all, regardless of their patients’ ability to pay.”
The healthcare sector was second only to state, county and municipal governments in total employment and is the state’s largest industry for job growth, according to the Department of Labor.
The report said Cape Regional provided 766 full-time jobs and has a total employee payroll of over $42 million. Those employees in turn pay an estimated $2.3 million in state income taxes.
According to hospital spokesman Tom Piratzky, Cape Regional and affiliates employed 827 full-time equivalents in 2007 and 839 by December 2008 with a payroll of $45 million.
When asked if the hospital was still hiring, Piratzky said it is currently filling open positions, which are carefully evaluated to determine the need to fill.
The report also noted the hospitals’ role as the primary healthcare provider for the state’s 1.3 million uninsured residents at a cost of $1.3 billion annually.
In 2007, uninsured patients utilized Cape Regional 22,772 times. The hospital provided $4.8 million in charity care services in 2007 and only expect $874,044 in charity care subsidies for 2009.
“This data paints a compelling picture of the compassionate care and economic stability delivered by New Jersey’s hospital community,” said Sean Hopkins, NJHA’s senior vice president of health economics.
Although the hospital doesn’t pay local property taxes, it does pay $260,000 to participate in the charity care program, a state tax of $155,000 based on admissions and a newborn screening fee of $51,300.
So how is Cape Regional faring in the current recession?
“In 2008, in-patient admissions and emergency department visits showed an increase from the previous year. However, out-patient surgeries and some elective out-patient testing have shown a decline,” Piratzky stated. “Through efficient management of resources, the Medical Center was able to show a small profit (.7 percent) from operations.”
The future?
“The management team will continue to manage the resources of the Medical Center in an efficient and strategic manner,” Piratzky added. “It is too early in the economic downturn to predict if Cape Regional is in a better or worse situation than other N.J. Hospitals.”
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com
Cape May – Governor Murphy says he doesn't know anything about the drones and doesn't know what they are doing but he does know that they are not dangerous. Does anyone feel better now?
