Cleveland Clinic Boosts Ohio Economy by $17.8B
CLEVELAND – Cleveland Clinic boosted the Ohio economy by $17.8 billion in 2016, according to the hospital system’s most recent economic impact report, “A Vital Force in Ohio’s Economy.“
The activities of Cleveland Clinic – the second largest employer in Ohio – supported 119,720 Ohio jobs in 2016, representing more than $7.5 billion in total earnings. Those earnings supported 87,540 households statewide, for a total of $5 billion in household spending.
“Cleveland Clinic is the economic engine of northeast Ohio,” said Tom Mihaljevic, Cleveland Clinic CEO and president. “We are the largest employer, a major purchaser of goods and services, and a generator of tax revenues for government at every level. Our economic activity supports families, neighborhoods and community life. It brings opportunity and prosperity to the areas we serve.”
The 119,720 total jobs cited in the report reflect both direct jobs (58,610) and indirect jobs (61,110). Direct jobs include Cleveland Clinic physicians and employees, joint venture employees, on-campus hotel jobs, on-campus parking jobs and jobs at spin-off companies. Indirect jobs include those supported by industries purchasing from the Cleveland Clinic.
While most Cleveland Clinic operations are tax-exempt, billions of dollars in state, local and federal taxes can be attributed to the presence of the Cleveland Clinic – $2.25 billion in federal income taxes paid by employees and vendors and $987 million in state and local income, property and business taxes.
In addition, Cleveland Clinic purchased almost $1.8 billion of goods and services from Ohio businesses, while Cleveland Clinic visitors contributed over $158 million to the state’s economy.
Cleveland Clinic produces economic impact reports every three years. This year’s report is based on 2016 data. Since the prior report in 2013, Cleveland Clinic’s statewide impact increased 41%, from $12.6 billion to $17.8 billion. The number of jobs increased 28%, from 93,560 to 119,720, while labor income increased 27%, from $5.9 billion to $7.5 billion.
Cleveland Clinic construction projects made a sizable contribution to the state and local economies. Between 2014 and 2016, Cleveland Clinic invested nearly $808 million in real property improvements, including renovating existing structures, building new facilities, and improving properties in Ohio.
That investment supported nearly 3,200 construction jobs per year and exceeded $164 million in direct and indirect labor income, on average, over the three years. The average fiscal impact of Cleveland Clinic’s construction activity during the three-year period was nearly $24 million in state and local taxes and almost $35 million in federal taxes per year.
Copyright 2023 The Business Journal, Youngstown, Ohio.