Study highlights impact of community hospitals on economy
May 2, 2008

Although many in Henderson would attest to their knowledge that Henderson Memorial Hospital is an important part in the physical health of their community, few realize just how significant a role HMH plays in the overall health of the area.

"Hospitals provide so much for a community," said Rich Umbdenstock, president and CEO of the American Hospital Association. "In addition to caring for the sick, hospitals provide jobs, good wages and benefits in the communities they serve."

A recent report by TrendWatch found that hospitals not only provide healthcare services to the community but also stimulate demand for goods and services provided by local businesses—even during times of recession.

"Of course our mission at HMH will always be to provide quality health care with courtesy and compassion," Mark Leitner, HMH CEO said, "but the fact that as an organization we can provide stability and growth for Henderson is something we never lose sight of."

In Henderson, HMH employs more than 250 people.

Gary Gunder, the hospital’s chief financial officer, said, "In 2007, HMH paid over $14 million in salaries and benefits for its employees. An additional $2 million was paid in contracts and fees to individuals and businesses in the Henderson area and another $700,000 was spent on electricity, water, gas and telephone."

In all, this means an economic impact of over $100 million for the Henderson area.

"The majority of our employees live in Rusk County. They spend their income right here in our community, supporting local businesses," Leitner said.

The report also showed that community hospitals are the second-largest employer in the private sector nationwide. In general, hospital jobs provide higher pay than other service sector jobs, are a stable source of employment and furnish benefits such as health insurance, which are lacking in jobs for low-skilled workers.

"This study really emphasizes just how important HMH is to Henderson’s economic environment," Leitner said. "It is also great news for our community, especially in these economic times."