How do doctors help Del. economy? With $4.8 billion impact

Doctors bring significantly more jobs — and money —  into Delaware than those working in higher education, nursing care facilities and legal services, according to a new report by the American Medical Association.

The organization's 2018 Economic Impact Study analyzed the effect physicians, those who work in both hospital and private practices, have on their state's economy. Economic activity, defined in the report, is measured by output, jobs, wages and benefits and state and local tax revenue. 

Here in Delaware, physicians are credited with creating 25,791 jobs in 2015 while the three other industries brought in a combined total of 28,399 jobs. The practicing 2,286 physicians created $4.8 billion in output, or the medical revenue generated during the course of care. This makes up about 7 percent of the gross state product. 

Doctors also helped bring in $164.6 million in state and local tax revenue. 

Nationally, the 736,873 doctors in the United States generated $2.3 trillion of economic activity, the report said. 

Dr. Richard Henderson, president of the Medical Society of Delaware, said physicians have contributed to the state's economy for years, yet many people "isolate" them and their practices from other well-known economic drivers, such as agriculture and tourism.

The report said each doctor in Delaware supported an average of 11.3 jobs. Henderson believes this number has increased in recent years due to the rise of electronic health records. More medical practices and hospitals are hiring people to manage their electronic health system as well as protect it. 

"If you have gray hair like me, and hit buttons one at a time, you have to have someone to record the information while I talk to the patient," he said. 

In the AMA's last economic study, published in 2014, Delaware physicians produced $3.2 billion in output. This report used different data sources and metrics, so they can't be directly compared.

Delaware's economic activity is, not surprisingly, lower than the larger bordering states that have more doctors. Maryland, New Jersey and Pennsylvania physicians generate $39.5, $55.4 and $77.3 billion, respectively.

The report also broke down the role different medical specialties play: Primary care physicians brought in the most jobs and money — 11,075 jobs and $1.975 billion in output — compared to non-surgical and surgical specialties. More specifically, family medicine physicians create $653 million of the $4.8 billion output.

Henderson, an OB-GYN, said this data comes at a time when these primary care doctors are "under a lot of economic pressure." Physicians in this broad specialty face decreasing reimbursements from insurance companies and increasing overhead costs to run a practice, he said. 

The Association of American Medical Colleges predicts the United States will face a shortage between 40,800 to 104,900 primary care physicians by 2030. 

The medical society president said it's unclear how doctors will continue to impact the economy in the coming years due to the continuing changes in the health care industry.  State officials are currently exploring ways to rein in health care costs while bettering the health of Delawareans. 

"We'll have to see," Henderson said.

Contact Meredith Newman at (302) 324-2386 or at mnewman@delawareonline.com. Follow her on Twitter at @merenewman.