Med School Economics

September 16, 2008
Michael Sheehan

Physician's Money Digest, July15 2004, Volume 11, Issue 13

The nation's medical schools andteaching hospitals have a major impacton the nation's economy, according to astudy released by the Association ofAmerican Medical Colleges (www.aamc.org). The AAMC represents 126 medicalschools and about 400 major teachinghospitals in the country. Accordingto the AAMC report, its members eitherdirectly or indirectly accounted for 2.7million jobs in 2002, of which 1.5 millionwere full-time positions. The medicalschools and teaching hospitalspumped $326 billion into the economyand employed close to 2% of all wageearners in the country. Although medicalschools and teaching hospitals areusually nonprofit and therefore exemptfrom many state taxes, they also producesignificant state-tax revenues,amounting to $14.7 billion, generallythrough payroll and sales taxes.