Transwestern
Healthcare Capital Markets
The Multiplier Effect
Every new healthcare job positively impacts the economy by increasing demand for supporting and aligned industries. Physicians are estimated to collectively impact economic activity by $2.3 trillion nationally, creating 12.6 million jobs ($3.2 million and 17.1 jobs per physician). This equates to about $1 trillion in annual wages and benefits and nearly $93 billion in state and local tax revenue ($1.4 million and $127,000 per physician). (Source: American Medical Association).
Job Creation from Healthcare Services
17.1 Jobs per Physician
Care Demand Projections
Outpatient care demand is projected to increase by 20% over the next 10 years to over 6 billion procedures nationally. Healthcare institutions must increase physician hiring to avoid lost revenue opportunities which will result in additional support jobs. For example, if the entire projected full-time physician employee supply gap of 247,000 is filled, and we apply the above noted multiplier of 17.1 supporting jobs per physician, this would result in as many as 4.2 million new jobs in the overall economy between now and 2035.
The Impact on Healthcare Real Estate
Healthcare real estate is already experiencing the impact of care demand and the multiplier effect as vacancy rates remain low nationally around 8%. The growth in healthcare is largely within an outpatient setting which is based upon the future demand for healthcare services. Additional jobs created will require more development of medical outpatient space across the country by leading providers and practices.
Sources: American Medical Association; Pivotal Analytics
For additional information, please contact:
Steve Leathers
Senior Managing Director
305.357.3830
steve.leathers@transwestern.com
Brooks Creech
Vice President
214.237.5028
brooks.creech@transwestern.com
Seth Gilford
Vice President
512.314.3975
seth.gilford@transwestern.com
Rachel Glass
Vice President
713.270.3327
rachel.glass@transwestern.com
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