Texas Physicians Inject Billions Into Lone Star State’s Economy

Jan. 8, 2018

New Study shows physicians support more than 670,000 Texas jobs, generate nearly $118 billion in economic activity  

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[Austin] — Physicians add opportunity, growth, and prosperity to the Texas economy by creating 670,172 jobs and generating $117.9 billion in state economic activity, according to a new report, The Economic Impact of Physicians in Texas, released today by the Texas Medical Association (TMA) and the American Medical Association (AMA).

“Everyone knows, whether in small towns or large cities, Texas doctors care for our communities’ health, but this study shows those same physicians are vital to the economic health of those cities, towns, and Texas as a whole,” said Carlos J. Cardenas, MD, TMA president. “Texas physicians truly improve the health of Texans, but clearly also improve the health of Texas’ growing economy. It is remarkable.”

The study quantifies the boost that Texas’ 51,333 active patient care physicians provide to the state’s economy, producing a ripple effect that is felt statewide. The study measures physicians’ impact using four key economic indicators:

  • Jobs: Physicians support 670,172 total jobs in Texas —13.1 jobs for each physician on average. 
  • Economic activity: Physicians generate $117.9 billion in economic output, comprising 7.3 percent of the Texas economy. Each physician generates $2.3 million for the local and state economy on average.  
  • Wages and benefits: Physicians contribute $55.4 billion in total wages and benefits paid to workers across Texas, empowering a high-quality, sustainable workforce. Each physician contributes $1.1 million to workers’ wages and benefits on average.  
  • State and local tax revenue: Physicians’ contribution to the Texas economy generates $3.5 billion in state and local tax revenue for their communities — translating to $68,599 in tax revenue paid for each physician on average — helping to pay for our schools, roads, criminal justice system, and health care services for all Texans.  
 


 “The positive impact of physicians extends beyond safeguarding the health and welfare of their patients,” said AMA President David O. Barbe, MD. “The Economic Impact Study illustrates that physicians are woven into their local communities and have a vital role in fueling state economies by creating jobs, purchasing goods and services, and supporting public services through the tax revenue they generate.”

The report found that every dollar applied to physician services in Texas generates an additional $2.13 in other business activity. An additional 7.66 jobs, above and beyond the clinical and administrative personnel that work inside physician practices, are supported for each $1 million of revenue generated by a physician’s practice. In addition, Texas physicians generate more economic output, produce more jobs, and pay more in wages and benefits than higher education, nursing and community care facilities, legal services, and home health.

Across the country, physicians add $2.3 trillion to the U.S. economy, support more than 12.6 million jobs, contribute $1 trillion in total wages and benefits paid to U.S. workers, and generate $92.9 billion in state and local tax revenue.

About TMA:

TMA is the largest state medical society in the nation, representing more than 50,000 physician and medical student members. It is located in Austin and has 112 component county medical societies around the state. TMA’s key objective since 1853 is to improve the health of all Texans.

About AMA:
The American Medical Association is the premier national organization providing timely, essential resources to empower physicians, residents and medical students to succeed at every phase of their medical lives. Physicians have entrusted the AMA to advance the art and science of medicine and the betterment of public health on behalf of patients for more than 170 years. For more information, visit ama-assn.org.

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TMA Contacts:  Brent Annear (512) 370-1381; cell: (512) 656-7320; email: brent.annear@texmed.org

Marcus Cooper (512) 370-1382; cell: (512) 650-5336; email: marcus.cooper@texmed.org

AMA Contact: Robert J. Mills (312) 464-5970; robert.mills@ama-assn.org

Connect with TMA on Twitter, Facebook, and Instagram.

Check out MeAndMyDoctor.com for interesting and timely news on health care issues and policy.

Published On

January 08, 2018

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