The report

revealed Georgia hospital's direct expenditure was $8

billion in 1997, up from $7.6 billion in 1996.

However,

when combined with an output multiplier developed by Dr.

Donald Ratajczak of the Economic Forecasting Center, the

total economic impact of those expenditures was $17.9

billion.

This output

multiplier considers the "ripple" effect of

direct hospital expenditures on other sectors of the

economy, such as medical supplies, durable medical

equipment and pharmaceuticals.

"Georgia

hospitals and health systems have an enormous impact on

the state's economy and are integrally interwoven in the

fabric of local communities throughout this state,"

said Joseph Parker, president of Georgia Health

Association. "We hope this report resonates to the

leadership of local communities, so that they understand

the importance of maintaining healthy hospitals through

health care policies and payments."

However,

Parker cited the need for increased federal, state and

local financial support of hospitals and health systems.

"In

1997, Georgia hospitals provided more than $825 million

in uncompensated care for indigent and charity patients,

bad debt write-offs and taxes, which is $88 million

higher than in 1996."

Hospitals

and health systems directly employ more than 130,000

people in the state and have a payroll that exceeds $3

billion annually.