A new report by the American Medical Association found that physicians who participate in patient care generated more than $1.6 trillion in economic spending and supported 10 million jobs nationwide in 2012 alone.
The study noted that physicians had a larger national economic impact than other industries like higher education and legal services.
“Spending on physician services grew more slowly between 2009 and 2012 than at any time in the last 15 years and accounts for only 16% of all health care dollars spent in the US in 2012,” the AMA announced in a statement. “Yet expenditures for physician services have a ripple effect through the economy. Every dollar applied to physician services supports an additional $1.62 in other business activity.”
AMA President Ardis Dee Hoven said the benefits of physician care have a ripple effect outside the clinic.
“Physicians carry tremendous responsibility as skilled healers, trusted confidants and patient advocates, but their positive impact isn’t confined to the exam room,” said Hoven. “The new AMA study illustrates that physicians are strong economic drivers that are woven into their local communities by the jobs, commerce and taxes they generate. These quality jobs not only support the caring role of physicians, but also generate taxes that support schools, housing, transportation and other public services in local communities.”
AMA Findings
The study based its findings off information gathered from 720,000 patient care physicians in all 50 states during 2012. They found:
- Each physician supported an average of $2.2 million in national economic output.
- Each physician supported an average of nearly 14 jobs, accounting for more than 10 million total jobs.
- Physicians supported median total state and local taxes of $440.4 million and mean total state and local taxes of $938.3 million. Nationally, physicians supported $65.2 billion in local and state tax revenues in 2012. On average, each physician supported $90,449 in local and state tax revenues.
Tommy Bohannon, divisional vice president of a physician search and recruitment office in Texas said the AMA findings were released to counteract some of the recent negative news against physicians.
“The timing isn’t accidental,” Bohannon said. “This comes as there’s more publicity than ever about Medicare payments to doctors. You’ll see articles about millionaire physicians but not as much about doctors going bankrupt. The AMA wants to show that doctors don’t make that much money, especially compared to what they generate in economic activity.”
Dr. Silverman comments
I am proud to be an American. I am proud to be running an independent practice and supporting my community. I’m proud of the choice I made to help people.
I am not proud of the way physicians are used as the “whipping boy” for the White House and media. It’s often typical behavior for the bully to pick on those with the least ability to organize (read: independent physicians). It’s ironic, because economically speaking, physicians provide so much in service. Attacking us is akin to “shooting yourself in the foot,” an injury I’ve come across a time or two.
In Minnesota we have what’s known as the MNCare Tax. Basically it is a tax on health care providers. You don’t see a tax on a profession anywhere else in our country. No tax on lawyers, no special funds created from the hard work of accountants or a tax on plumbers, grocers, teachers. MNCare defines the tax as “a series of gross revenue taxes on physicians to fund state-subsidized health care coverage for low-income individuals.” Essentially, physicians are forced to pay to treat their own patients who can’t afford treatment on their own.
MNCare also happens to be one of the lowest payers in the market, but of course almost all physician practices including my own take it. It’s part of our job to help those in need regardless of ability to pay or if the payment is a net loss in our business. We do it to help people.
Maybe the government should follow suit.
