Nashville’s health care ecosystem now represents a $66.893 billion industry annually, according to the results of a new economic impact study released today by the Nashville Health Care Council, in collaboration with local economist Murat Arik, PhD, Associate Director of the Business and Economic Research Center (BERC) at the Jennings A. Jones College of Business at Middle Tennessee State University (MTSU).
The report, which primarily focuses on economic impact between the years of 2014-2019, also showed a total of 602 new core health care establishments emerged in Nashville, bringing the total to 3,731.
“This report clearly shows the growth and strength of the health care industry in Nashville, which has been so evident to those of us who live and work here in the nation’s health care capital,” said Hayley Hovious, President of the Nashville Health Care Council. “Obviously the past 18 months have presented challenges to every industry, including ours, but these remarkable numbers clearly show that Nashville’s health care sector is already recovering and our innovative, entrepreneurial spirit continues to guide our growth. The future is very bright for health care in Nashville.”
According to the report, Nashville’s health care industry was responsible for 328,598 jobs in 2019, 25 percent of the total nonfarm employment within the Nashville MSA. Globally, Middle Tennessee’s 18 publicly traded companies account for nearly 499,434 jobs and more than $95 billion in revenues.
The report did look at more recent figures to determine the impact – and recovery – the local industry felt from COVID-19. Between December 2019 and April 2020, the report found, the Nashville MSA health care cluster lost about 14,423 jobs and nearly $1 billion in lost wages. Between just April 2020 and June 2020, however, the cluster regained about 5,306 jobs, giving early indications of a strong bounce back.
Key findings from the study include:
• Nashville health care industry cluster was responsible for more than one-third (34.37 percent) of the Nashville MSA’s total personal income in 2019.
• One in every eight new jobs between 2018 and 2028 is projected to be in health care in Tennessee.
• The Nashville health care industry’s $66.893 billion in business revenue represents roughly 9.23 percent of Tennessee’s total business revenue and 25.77 percent of the Nashville MSA’s total business revenue in 2019.
The numbers were officially unveiled and discussed at a virtual press conference, featuring Hovious, Arik, and Council board chair and LifePoint CEO David Dill.