The Economic Impact of Cincinnati Children's Hospital Medical Center on Greater Cincinnati
Cincinnati Children’s Hospital Medical Center is one of the largest hospitals in the Cincinnati Tristate region, whose employment and business interactions create economic benefits across households and industries in Greater Cincinnati. 1 This report estimates the economic impact of Cincinnati Children’s on Greater Cincinnati’s employment, household earnings, and business sales for fiscal year 2002.
- The total annual economic impact of Cincinnati Children’s is $1.34 billion. This includes a household earnings impact of $541 million. The total impact on employment in Greater Cincinnati is 13,793 jobs.
- Together, these economic activities generated $56 million annually in state and local tax
- The economic impact associated with non-local sources of revenue, including federal
research funding and hospital patients who do not reside in Greater Cincinnati, is $389
million. Approximately 16.6 percent of inpatients and 8.8 percent of outpatients at
Cincinnati Children’s come from outside the region.
- The total economic impact of local construction in fiscal year 2002 was $123 million. Of
this, approximately 29 percent ($35.2 million) is in the form of wages to local
Expenditures and Employment
- In fiscal year 2002, Cincinnati Children’s expenditures totaled over $620 million. Wages and benefits, including pension benefits, totaling $310 million, were the largest component of expenditures.
- When all personnel expenditures are considered (temporary personnel, along with
regular wages and benefits), they account for 51 percent of total hospital expenditures.
- Cincinnati Children’s employed a total of 6,433 people in 2002. Sixty-two percent of
these jobs were full-time, and 38 percent were part-time. Total employment has
increased by 82 percent in the past six years.
- Over a two-year period, Cincinnati Children’s has invested $42.5 million in information technology to improve quality and efficiency.
Other Positive Impacts
- Cincinnati Children’s is one of the top six children’s hospitals in the country, bringing
positive national attention to Greater Cincinnati.
- Cincinnati Children’s national prominence results from its attention to quality and its
striving for perfection in its clinical, research, and education missions.
- “Centers of Excellence” promote synergy across the missions as clinicians, researchers, and educators bring their talents to particular, focused health areas. Cutting edge research can be efficiently translated into clinical advances that benefit patients.
- Because of Cincinnati Children’s, local communities have some of the best-trained
pediatricians in the country: an estimated 70 percent of them have been trained at
Cincinnati Children’s. In the growing residency and training programs, 53 percent of
students choose to remain in the Cincinnati area.
Between 1996 and 2002, the total annual impact of Cincinnati Children’s has more than doubled, the annual impact on household earnings has increased by 139 percent, and, on employment, by 119 percent.
- In the ten-year period from 1992 to 2002, Cincinnati Children’s has tripled its share of the NIH funding pool, achieving a 420% growth in inflation-adjusted NIH funding.
1 Greater Cincinnati is defined as the 13-county Cincinnati consolidated metropolitan statistical area. It includes Hamilton, Butler, Warren, Clermont, and Brown Counties in southwestern Ohio; Boone, Kenton, Campbell, Gallatin, Grant, and Pendleton Counties in northern Kentucky; and Dearborn and Ohio Counties in southeastern Indiana.