The Greater Austin Chamber and Opportunity Austin, in partnership with the Seton Family of Hospitals and St. David’s HealthCare, released a report today on the Economic Impact of the Primary Medical Sector on Austin’s Economy.

Texas Perspectives, Inc. (TXP) was retained in early 2006 to assist Opportunity Austin, the Chamber’s five-year economic development initiative aimed at creating 72,000 new jobs, in evaluating the current and potential economic impact of Austin’s primary medical sector.

“There are many economic benefits to having a strong healthcare industry including the jobs and opportunities they create in a region,” said Dave Porter, Sr. Vice President of Economic Development for the Greater Austin Chamber. “The healthcare sector is one of the largest job employers nationwide, and it benefits all of us to know how to increase these jobs in our region as well as the services offered to those who live here.”

Overall, the healthcare industry in Austin has an economic impact of $8.8 billion with a workforce of 85,466, which represents 12% of the local employment base. The report concludes that opportunities and the need exists to expand the healthcare industry in the greater Austin region.

"This study defines the huge impact health care has in our community - not only in keeping people healthy - but also our community's economic health," said Charles Barnett, President and CEO, Seton Family of Hospitals. "In less than 15 years, Seton will need to double in size to keep up with skyrocketing growth in Central Texas. We will need more than 2,000 new nurses and 800 new physicians. The healthcare industry's continued growth will define the quality of life we can expect long into the future."

“The economic contribution of area hospitals to the local community is virtually unsurpassed by any other industry,” said Jon Foster, chief executive officer of St. David’s HealthCare. “In the last decade, St. David’s HealthCare has invested almost a half a billion dollars into our facilities in Central Texas, and we anticipate unprecedented growth in the coming years.”

Last year the primary medical sector directly accounted for 5.7% of the area’s job base. The report concludes that if the Austin area would match the national average of 7.1%, an additional $2.3 billion in output, $820 million in earnings and 22,175 new jobs would result. The benefits of a quality medical sector not only include more jobs, but are key elements in recruiting businesses and establishing a long-term quality of life for those living in the Austin region.