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PROVIDENCE, R.I. - Hospitals in Rhode Island supported over 60,000 jobs and generated an estimated $11.7 billion in total economic output in 2024, according to a new report released today. The 2024 Economic Impact Analysis, commissioned by the Hospital Association of Rhode Island, assessed the full spectrum of economic effects of the state’s hospitals on the local economy, including direct, indirect and induced impacts.
“Hospitals are critical to Rhode Island’s health care system, and their contributions extend far beyond providing vital care for patients,” said Howard Dulude, interim president of the Hospital Association of Rhode Island. “Hospitals are fundamental drivers of the state’s economy, supporting tens of thousands of jobs and generating hundreds of millions of dollars in tax revenue.”
“This analysis further underscores how absolutely crucial hospitals are not only to patients, but also the economic stability and vitality of our state,” he added.
According to the report, in 2024, hospitals directly and indirectly supported an estimated:
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63,054 jobs statewide, with 35,717 directly employed by hospitals and an additional 27,337 indirect and induced jobs
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$11.7 billion in total economic activity, including $98.9 million in construction investments
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$4.9 billion in income, supporting 41,965 households for Rhode Island families
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$779.3 million in state and local tax revenue
The report states that from 2025 to 2030, hospitals are projected to invest $469.5 million in construction and modernization, supporting an estimated:
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973 jobs annually across construction and related sectors
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$151.4 million in yearly economic output
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$6.1 million in annual state and local tax revenues
“Despite their essential role in Rhode Island’s economy and healthcare system, hospitals are facing mounting financial pressures driven by chronic underfunding, workforce shortages and rising costs,” Dulude said. “The current Medicaid reimbursement rates do not cover the cost of care, and commercial rates in Rhode Island remain below those in neighboring states. These funding shortfalls directly impact hospitals’ ability to sustain jobs, invest in critical infrastructure and continue delivering high-quality care to our communities."
“The proposed FY26 state budget would impose further financial strain on hospitals at a time when they are already at a breaking point,” he added. “Restoring these cuts and strengthening healthcare investments is essential—not just to protect patient care, but to safeguard the economic foundation that hospitals provide for Rhode Island.”
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