Carilion Clinic generated more than $3.2B in 2018, study shows
The health care system employed more than 13,000 in the same year.
Published
Roanoke-based Carilion Clinic generated more than $3.2 billion in economic impact and approximately 24,000 jobs in Virginia in 2018, according to a Carilion-commissioned study released Wednesday from the University of Virginia’s Weldon Cooper Center for Public Service’s Center for Economic and Policy Studies.
Using data from Oct. 1, 2017, through Sept. 30, 2018, the economic impact study examined Carilion’s spending and employment growth independent of its partnerships with Virginia Tech and Radford University. The Weldon Cooper Center also released an economic impact study in 2018 focusing on the impact of the Virginia Tech Carilion Health Sciences and Technology Campus in Roanoke.
“Carilion plays a vital role in the health and well-being of the communities we serve, as well as the state’s economic health,” Carilion President and CEO Nancy Howell Agee said in a statement. “This study provides a snapshot of our operations and it’s encouraging to see the ripple effect that extends far beyond our walls.”
The study shows growth in Carilion’s employee base, payroll, investments and economic impact on local businesses. In fiscal year 2018, Carilion employed 13,317 people and contracted 4,106 Virginians as vendors. A secondary result of Carilion’s growth is growth in other industries. The study shows that for every 10 Carilion jobs, an additional eight jobs are created in Virginia.
The report also found that Carilion and its employee households locally have generated more than $155 million in trade revenues, including retail spending, and more than $126 million for the transportation, information and public utilities industries. Additionally, Carilion and its workers accounted for about $2.7 million in spending for the local service industry, including health care, education, entertainment and real estate.
“Looking back over the last decade or more, it’s not surprising to see these numbers,” said Steve Arner, Carilion’s executive vice president and chief operating officer. “As the largest private employer west of Richmond and a provider of care to more than a million people, our responsibility to the community drives our decisions and resulting growth.”
Carilion announced in 2019 that it plans to invest $1 billion in its system infrastructure and projects during the next seven years. The health care system predicts that it will spend another $6 billion in staffing during the expansion time period.
“It’s certainly an exciting time to be in our region,” Agee said in a statement. “Thanks to the passion and commitment of our teams, support of our community and strong partners, our transformation and growth over the past decade has contributed to our region’s rise.”
Agee has served as president and CEO of Carilion Clinic since 2011. Bringing in about $2 billion in annual revenue, the nonprofit serves more than a million people in seven hospitals across Virginia and West Virginia.