Report: Hospitals Contribute $23.4 Billion to N.J. Economy

Health, Insurance

New Jersey hospitals and health systems contributed $23.4 billion to the Garden State economy in 2016, according to the 2017 N.J. Hospitals Economic Impact Report released today by the New Jersey Hospital Association. This is an increase from $22.7 billion in activity in 2015.

Mirroring national trends, hospitals and health systems saw employment increase to nearly 144,000 jobs, including more than 120,000 full-time jobs. This resulted in $9 billion in employee payroll spending and $496 million in estimated state income tax paid by employees, an increase from $8.7 billion and $483 million in 2015, respectively.

New Jersey’s hospitals and health systems are some of the largest employers in the state, not only providing quality care to their communities and supporting community health and wellness, but contributing to the financial strength and producing jobs people are proud to do,” said Cathy Bennett, president and CEO of NJHA. “We are gratified our work is a bedrock of the state and local economy.”

The Economic Impact Report uses data gathered from 71 acute care hospitals in the Garden State and compiles their economic contributions statewide and across counties and individual hospitals. The 2017 report, which utilizes 2016 year-end data, also breaks out economic contributions by hospital- and county-level data.

The full report is available as an interactive tool for the second year, available here (http://www.njha.com/resources/2017-economic-impact-report/). Data by teaching hospital status and state and federal district is also easily accessed through a series of drop down menus. Previous reports dating back to 2014 data are also available now through the interactive page.

Specific highlights from the 2017 report include:

  • New Jersey hospitals and health systems purchased $3.3 billion in goods and services from other companies last year, an increase of $200 million over 2015. Key areas include contracted labor ($1.6 billion), pharmaceuticals ($1.4 billion), dietary, laundry and housekeeping ($129 million) and building supplies ($20 million).
  • New Jersey hospitals and health systems paid nearly $159 million in taxes, including a 0.53 percent assessment ($131.5 million), adjusted admissions assessment ($17.4 million) and newborn screening fees ($9.6 million).
  • New Jersey hospitals and health systems contributed to the state’s safety net by providing care during 1.4 million hospital visits by uninsured persons.

“As the full impact of the aging Baby Boomer generation is just beginning to be felt, the true value of the hospitals and health systems to the state of New Jersey cannot be overstated. The economic footprint of our healthcare community ripples throughout state and local economies and provides a strong foundation for continuing to provide excellent care to the people of our state,” said Sean Hopkins, NJHA’s senior vice president of federal relations and health economics.

NJHA reports also quantify the contributions of the state’s nursing homes (http://www.njha.com/media/404009/NJHA2017NursingHomeProfile.pdf) and the $2.75 billion in community support provided by the state’s hospitals and health systems (http://www.njha.com/media/413753/17-community-benefit-infographic-report.pdf).

Cook Maran acquires McDermott & Thomas, strengthening employee benefits services in its growing New York-based insurance brokerage

Business, Insurance

New York metropolitan area platform of Prime Risk Partners expands; McDermott & Thomas adds critical expertise for business clients

Cook Maran & Associates (“Cook Maran”), one of New York and New Jersey’s largest insurance brokers and the New Yorkmetropolitan area platform for Prime Risk Partners (“PRP”), has acquired McDermott & Thomas Associates LLC (“M&T”), a Staten Island-based agency specializing in employee benefits.  M&T’s partners bring more than seven decades of experience advising businesses on customized, cost-effective insurance solutions for their human resources.

M&T employees will continue to work from the agency’s Staten Island location and do business as “McDermott & Thomas,” joining Cook Maran’s six offices and 250 professionals across New York and New Jersey.  In merging with Cook Maran, M&T also broadens the offering of PRP, one of the nation’s fastest-growing insurance intermediaries.

“Under the leadership of Pat McDermott and Mark Thomas, M&T has advised hundreds of employers across dozens of states on their benefits and other insurance needs,” said Len Scioscia, Chairman and CEO of Cook Maran.  “They’ve earned a reputation as trusted experts in a challenging field over the last thirty years, and we’re proud to welcome them to Cook Maran and PRP.”

Scioscia noted that the M&T partnership strengthens Cook Maran’s portfolio in a critical area. “At a time when all employers grapple with rising premiums and face so much uncertainty in the national health insurance market, we felt the time was right to join forces with a trusted, expert advisory firm like M&T to make our benefits practice even stronger,” he explained.

“Now more than ever, businesses need help building a competitive benefits package that fits the realities of their bottom line – and explaining the plan to employees,” agreed Patrick McDermott, who co-founded M&T with Mark Thomas in 1987.  “That’s been our mission as an agency for the last three decades.”

By merging with one of New York and New Jersey’s leading agencies and PRP (#44 in the most recent Business Insurance ‘Top 100 Business Brokers’ ranking), M&T’s founders see new opportunities to pursue this mission while offering clients the same personal service from familiar faces.

“By joining Cook Maran and PRP, we’ve found regional and national partners that can help us do what we love – solving problems for clients – at an even higher level as part of a really dynamic organization,” added McDermott.

About Cook Maran
Cook Maran, which traces its roots to 1946, has almost 250 employees in eight offices in New York and New Jersey.  Its focus on being a trusted advisor to its business and individual clients has allowed it to enjoy outstanding growth, and it is now one of the leading independent insurance agencies in the New York metro area.  For more information, please visit www.cookmaran.com.

About McDermott & Thomas Associates
Since 1987, McDermott & Thomas Associates, LLC, has advised business clients on employee benefits with a high level of personalized focus and expertise, serving companies of all sizes across state lines and industry sectors. With over 70 years of collective experience in successful benefits planning and administration, the firm’s partners are engaged with every client to provide the intelligence and expertise of a larger agency with the flexibility and responsiveness of a smaller, local partner.  Learn more at www.mthassoc.com.

About Prime Risk Partners
Prime Risk Partners, headquartered in Atlanta, Georgia, is building a superior national insurance distribution platform through selective acquisitions, strategic new hires, and thoughtful operations. A portfolio company of Thomas H. Lee Partners, it is quickly becoming the partner of choice for industry professionals looking to grow exponentially while becoming a critical piece of a growing national organization.  For more information, please visit www.primeriskpartners.com.