Cleveland Clinic Injects $17.8 Billion into Ohio’s Economy

Jobs, Construction, Spending and Taxes Add Up to Sizable Addition to State, Local Economies

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.”

*Jobs: Includes 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 existing at spin-off companies. Indirect jobs include those supported by industries purchasing from Cleveland Clinic.  **Taxes: State and local income taxes, property taxes and indirect business taxes; federal income taxes by employees and vendors.

Cleveland Clinic

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 Cleveland Clinic CEO and President Tom Mihaljevic, M.D. “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 existing at spin-off companies. Indirect jobs include those supported by industries purchasing from 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 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 percent, from $12.6 billion to $17.8 billion. The number of jobs increased 28 percent, from 93,560 to 119,720, while labor income increased 27 percent, 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.

Cleveland Clinic Florida

As “A Vital Force in Florida’s Economy,” Cleveland Clinic Florida contributed $1.2 billion in total economic output statewide, including 7,450 jobs, $426 million of labor income and $315 million in household spending. Additional economic impacts in Florida included: $58 million in state and local taxes; $142 million in federal taxes; $5 million in visitor spending and $51 million in spending on goods and services.

Cleveland Clinic Lou Ruvo Center for Brain Health

As “A Vital Force in Nevada’s Economy,” Cleveland Clinic’s Lou Ruvo Center for Brain Health contributed $47 million in total economic output statewide, including 320 jobs, $21 million of labor income and $12 million in household spending. Additional economic impacts in Nevada included: $1.8 million in state and local taxes; $6.7 million in federal taxes; $1 million in visitor spending and $7.6 million in spending on goods and services.

 

 

All three economic impact reports can be found at https://my.clevelandclinic.org/about/community/reports/economic-impact-report.

 

About Cleveland Clinic

Cleveland Clinic is a nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education. Located in Cleveland, Ohio, it was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based upon the principles of cooperation, compassion and innovation. Cleveland Clinic has pioneered many medical breakthroughs, including coronary artery bypass surgery and the first face transplant in the United States. U.S. News & World Report consistently names Cleveland Clinic as one of the nation’s best hospitals in its annual “America’s Best Hospitals” survey. Among Cleveland Clinic’s 52,000 employees are more than 3,600 full-time salaried physicians and researchers and 14,000 nurses, representing 140 medical specialties and subspecialties. Cleveland Clinic’s health system includes a 165-acre main campus near downtown Cleveland, 11 regional hospitals, more than 150 northern Ohio outpatient locations – including 18 full-service family health centers and three health and wellness centers – and locations in Weston, Fla.; Las Vegas, Nev.; Toronto, Canada; Abu Dhabi, UAE; and London, England. In 2017, there were 7.6 million outpatient visits, 229,000 hospital admissions and 207,000 surgical cases throughout Cleveland Clinic’s health system. Patients came for treatment from every state and 185 countries. Visit us at clevelandclinic.org. Follow us at twitter.com/ClevelandClinic. News and resources available at newsroom.clevelandclinic.org.

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