Washington, D.C., February 4, 2004 - U.S. medical schools and teaching hospitals represented by the Association of American Medical Colleges (AAMC) had a combined economic impact of over $326 billion and employed one out of every 54 wage earners in the United States labor force either directly or indirectly during 2002, according to a new AAMC report. The AAMC represents 126 accredited U.S. medical schools and some 400 major teaching hospitals. The study, "The Economic Impact of Medical College and Teaching Hospital Members of the Association of American Medical Colleges," measures the financial contributions of the association's member institutions in the regions in which they are located and the nation as a whole.

One of the report's important findings is that AAMC medical schools and teaching hospitals are major employers in their home states, accounting for 2.7 million jobs directly or indirectly in 2002. More than half of these—1.5 million—were full-time positions.

The report also corrects a major misconception that medical schools and teaching hospitals do not generate revenue for respective state governments. Although these institutions are generally not-for-profit, they still helped generate significant revenue in state income taxes. In 2002, AAMC medical schools and teaching hospitals produced a total of $14.7 billion in state government revenues. Within their states, these institutions also generate additional government monies by paying sales taxes, corporate net income taxes and capital stock/franchise taxes.

"This study demonstrates how our institutions play a crucial role in the economic well-being of their communities," said AAMC Division of Health Care Affairs Senior Vice President Robert Dickler. "By serving as major employers and generators of economic activity, the contributions of AAMC medical schools and teaching hospitals extend beyond their traditional missions of education, research, and patient care."

In addition, the study found that AAMC members generate $14 billion in out-of-state medical visitor related revenue. This total includes $1 billion in direct spending, outside of medical schools and teaching hospitals by out-of-state patients, as well as another $1.5 billion spent by the friends and family who visit these patients. These institutions are also major sponsors of meetings, seminars and symposiums in their states. The events draw significant numbers of visitors whose spending provide a major boost to local economies. Spending by this group last year totaled $11 billion.

Tripp Umbach Healthcare Consulting, Inc. prepared the report for the AAMC. For more information go to the AAMC Publications Web site.

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The Association of American Medical Colleges is a not-for-profit association representing all 129 accredited U.S. and 17 accredited Canadian medical schools; nearly 400 major teaching hospitals and health systems, including 68 Department of Veterans Affairs medical centers; and 94 academic and scientific societies. Through these institutions and organizations, the AAMC represents 109,000 faculty members, 67,000 medical students, and 104,000 resident physicians. Additional information about the AAMC and U.S. medical schools and teaching hospitals is available at www.aamc.org/newsroom.

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