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Alabama’s hospitals contribute over $25 billion annually to state economy

Hospitals across Alabama are responsible for sustaining 143,000 jobs statewide, according to a new report.

UAB University Hospital signage on sidewalk with the O'Neal Comprehensive Cancer Center and the North Pavilion in the background, April 2020.
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Alabama’s hospitals are providing more than healthcare—they are economic powerhouses, generating over $25 billion annually in economic impact and directly supporting tens of thousands of jobs statewide.

According to a new report from the Alabama Hospital Association, the state’s hospital sector directly employs 77,000 people, resulting in a $10.4 billion labor impact each year. When indirect economic effects are included, hospitals across Alabama are responsible for sustaining 143,000 jobs statewide.

In 2023 alone, hospitals in Alabama recorded impressive healthcare statistics, serving communities through 564,939 inpatient admissions, over 6.4 million outpatient visits, and nearly 2.2 million emergency room visits—demonstrating their critical role as essential healthcare providers and economic engines.

Laura Grill, President of East Alabama Health, echoed this sentiment, emphasizing the broader impact hospitals have on local economies: “Hospitals are dedicated to improving the lives of all Alabamians and strengthening our state’s economy. They serve as anchors in their communities, driving employment, business growth, and sustainable development.”

Hospitals directly employ approximately 77,000 Alabamians, generating an impressive $10.4 billion in wages and salaries. Including indirect employment, their labor impact expands dramatically, highlighting their indispensable role in local job markets and the economy at large.

Dr. Donald E. Williamson, president of AlaHA, underscored hospitals’ role beyond traditional healthcare, saying, “Hospitals across Alabama are committed not only to high-quality medical care but also to the overall health and vitality of our communities. Their economic contributions significantly enhance local economies and help elevate the quality of life statewide.”

As Alabama continues to pursue economic growth, the robust performance of its hospital networks underscores their dual role as healthcare providers and catalysts for sustained prosperity.

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The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

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