The report found that the 125 accredited U.S. medical schools and more than 400 major teaching hospitals represented by the AAMC employ nearly 1,670,000 individuals and are directly and indirectly responsible for more than 3 million full-time jobs—one out of every 48 wage earners in the United States.

This $451.6 billion overall impact on the national economy takes into account the direct and indirect business volume generated by these institutions, including institutional spending; employee spending; and spending by patients, their families, and visitors (excluding spending for patient care and medical services). According to the report, every dollar spent by a medical school or teaching hospital indirectly generates an additional $1.30 when it is "re-spent" on other businesses or individuals, resulting in a total impact of $2.30 per dollar.

Medical schools and teaching hospitals also generated more than $20 billion in state tax revenue in 2005 through income and sales taxes, corporate income taxes, and capital stock/franchise taxes paid by businesses that collect revenue from these institutions.

In addition, these institutions generated more than $15 billion in out-of-state medical visitor-related revenue in 2005, including direct spending in local communities by out-of-state patients and their friends and families. Medical schools and teaching hospitals are also major sponsors of meetings and conferences in their states, drawing a significant number of visitors whose spending boosts local economies.

The AAMC report, "The Economic Impact of AAMC-Member Medical Schools and Teaching Hospitals," does not include the economic impact of patient care-related spending at hospitals, nor does it account for the economic benefits of the community service programs and physician training programs that are the hallmark of academic medical institutions. This report was prepared for the AAMC by the consulting firm, Tripp Umbach.

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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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