Service to the Community and Major Contributor
to the Financial Health of Central Florida (View complete report as a PDF)
Service to the community is a founding principle of Orlando Health. A recent study* quantifying the financial impact of Orlando Health and the types of value-added services and resources it brings to Central Florida found this principle to be strong nearly 100 years later.
There is no question Orlando Health improves the quality of life in Central Florida by serving the diverse healthcare needs of our community. As a business partner, Orlando Health contributes to the economic viability of our region as a:
Orlando Health provided more than 650,000 healthcare services to the residents and visitors of Central Florida last year at our facilities.
* Parameters of the Study
One characteristic of economics is that $1 is worth more than 100 cents as it moves through the market. Each new dollar added to a community must be increased by a multiplier effect in order to accurately determine the ultimate value of adding new dollars.In the study “The Effect of Orlando Health on the Central Florida Region - A Financial Impact Assessment”, 8/29/08”, prepared by the University of Central Florida’s Department of Health Management and Informatics, College of Health and Public Affairs to determine the financial impact of Orlando Health on Central Florida, several multipliers are used including employment, income, output, construction and community involvement.
$2 Billion Financial Impact*
Orlando Health is the 5th largest employer in Central Florida. The hospital system employs more than 14,000 team members and 2,000 physicians. Jobs for this large workforce - both full-time and part time -- generate wages, benefits, and payroll taxes.
In 2007, Orlando Health paid $548 million in wages to team members who in turn purchased goods and services in the local market, thus creating and sustaining non-Orlando Health jobs in the community. Additionally Orlando Health paid $111 million in benefits and payroll taxes. These payments are subject to an employer multiplier.
*Multiplied by an employment multiplier
$184 Million Financial Impact*
Orlando Health's existing investment in the metropolitan Orlando campus is more than $650 million. This includes more than $130 million spent in capital and equipment expenditures in 2007.
To accommodate the anticipated growth of our region and to continue to keep up with advancements in medical technology and innovation, Orlando Health plans to invest an additional $450 million over the next several years. Projects will potentially include infrastructure upgrades, accommodation for a commuter rail station, parking facilities, roadway enhancements and new and replacement medical office buildings. While these expenditures are outside of the scope of the financial impact analysis, the theory of economic multipliers indicates that these capital expenditures will have a positive impact on the financial health of the region.
*Multiplied by a construction multiplier
$1.5 Billion Financial Impact*
Orlando Health generates revenues for the Central Florida economy by delivering more than 650,000 healthcare services to patients each year. As a healthcare provider and a major business in the area, the system contributes substantially to the local marketplace by the purchasing of goods and materials.
Orlando Health serves over 3.5 million people in its primary (Lake, Orange, Osceola, Seminole counties) and secondary (Brevard, Polk and Volusia counties) service areas. The hospital system absorbed more than $353 million in uncompensated care in 2007.
*Multiplied by an income and output multiplier
$48.9 Million Financial Impact*
Team Member Activities: $28.4 million
Team members engage in a variety of activities aimed at addressing the human service needs of the region.
Last year, more than 5,000 team members gave in excess of $400,000 to the Orlando Health Foundation and Heart of Florida United Way.
A community involvement multiplier is used to estimate the financial impact of Orlando Health team member involvement. Team member involvement includes both in-kind donations and payroll deductions to charitable activities.
Regulatory Assessments: $14.9 million
All hospitals in the State of Florida contribute a percent of total charges into the Public Medical Assistance Trust Fund. The fund dollars are used to help pay for hospital services for Medicaid patients. Orlando Health's assessment in 2007 was $14.9 million.
Organizational Initiatives: $5.5 million
Orlando Health devotes significant time and financial resources to healthcare related and health educational service programs. This funding commitment represents a major investment in the human service needs of Central Florida residents.