The health care sector has grown over the past decade. Comprised of several inter-related industries—including ambulatory health care services, hospitals, health care centers, doctors’ offices, laboratories, and nursing and residential care facilities—the industry as a whole provides access to a variety of vital health care services, employing thousands of workers, and generating significant revenues and tax dollars.

As our population grows, ages, and as medical advances extend our productive lives, the health care sector is likely to be a driver of economic activity going forward.

Review the Ventura County highlights from “Hospital Industry in Southern California Economic Analysis” conducted by the Los Angeles County Economic Development Corporation. You can also download the complete report.

Employment

There are more than 1,963 private and public health care establishments in Ventura County representing 8.0 percent of all payroll employment in the county.  (See exhibits 8-1 through 8-3.)

Highlights

• 23,710 payroll employees
• 2,800 self-employed and freelance health care practitioners and home health care-related workers
• 10,224 jobs in hospital industry
• 3.0% average annual growth rate for payroll employment since 2000, compared to 1.0% per year in the prior decade
• $50,312 average annual wage

Of the jobs supported by the industry, almost one third is in health care practitioner and health care support occupations, with average annual wages of $79,526 and $30,027 respectively. The occupational distribution of the total jobs is shown in Exhibit 8-10.

Operations

Data compiled by the State of California Office of Statewide Health Planning and Development (OSHPD) provides insight into the capabilities and activity at 97 reporting hospitals.

Highlights

• 1,732 licensed beds and 1,570 available beds
• 60.6% average occupancy rate
• 347,000 inpatient days, with acute care accounting for nearly 74%
• Average 5.1 day-length of stay for patients
• More than 1.5 million outpatient visits, only 14% of which were emergency room visits

Economic Activity

Hospital operations generate substantial revenues, employment and labor income. A summary of the activity of the reporting hospitals is shown in Exhibit 8-7.

Highlights

• $1.3 billion in net patient revenue, $149 million in other revenue
• More than $544 million in purchases
• $474 million in wages and salaries
• $197 million in employee benefits
• $71 million paid to physicians
• $28 million paid for other professional services

Economic and Fiscal Contribution

The total economic contribution of the hospital industry extends beyond the activity generated within the sector itself. The total economic contribution of the hospital industry in Ventura County in 2010, including direct, indirect and induced activity, is shown in Exhibit 8-8. The indirect and induced impacts spill across industries, include administrative and waste management, retail trade, and real estate and rental services (Exhibit 8-9).

Highlights

• $1.4 billion in estimated industry revenues
• $3.1 billion in total economic output
• 21,100 full- and part-time jobs supported
• $1.3 billion in labor income (including benefits)
• $162 million generated in state and local taxes

Construction Spending - Economic and Fiscal Impact

The total economic impact of construction spending by the hospital industry in Ventura County in 2010, including direct, indirect and induced activity, is shown in Exhibit 8-11. The indirect and induced impacts spill across industries, as shown in Exhibit 8-12.

Highlights

• $22.6 million in total economic output
• 150 full- and part-time jobs supported
• $8 million labor income (including benefits)
• $162 million estimated in state and local taxes