Healthcare Makes $100+ Billion Impact to Michigan’s Economy

Healthcare Remains the Largest Private-Sector Employer in Michigan & Demand for Healthcare Jobs Remains High

The Michigan Health & Hospital Association published results from the 2025 Economic Impact of Healthcare in Michigan report as part of National Hospital Week (May 11-17), demonstrating a $106 billion total economic impact healthcare had in fiscal year 2023, the most recent data available.

More than one million jobs are either directly, indirectly or induced by healthcare in the state, contributing $79 billion a year in wages, salaries and benefits and an additional $23.6 billion a year in tax revenue. Hospitals alone provide more than 222,000 direct jobs and $10.7 billion a year in tax revenue, representing 44% of healthcare’s direct tax revenue and remaining the largest healthcare sector in the state. Overall, healthcare remains the state’s largest employer of direct, private-sector jobs.

Also released are the results from the MHA’s third annual Michigan hospital workforce survey, which shows the demand for hospital workers remains high, with hospitals hiring 58,000 employees in calendar year in 2024 and having 23,000 open positions statewide. The survey includes responses from more than 95% of all Michigan acute-care inpatient hospitals.

The results also show Michigan hospitals continue to outperform national nurse retention rates. The registered nurse (RN) turnover rate for Michigan hospitals is 2.3 percentage points lower than the national average of 16.4%. Collectively, Michigan hospitals now employ roughly 64,500 RNs.

“The success of Michigan’s economy is closely connected with the strength of our healthcare system,” said Michigan Health & Hospital Association CEO Brian Peters. “Healthcare is the foundation for many local communities. As Michigan ages and more individuals need complex care, the demand for healthcare services and workers continues to grow – and hospitals must meet that demand. As we celebrate National Hospital Week, we commend the hospital workers who show up to work every day to care for us and make Michigan healthy.”

To complement the hiring efforts of individual hospitals, the MHA continues to operate the statewide MI Hospital Careers public awareness campaign. Originally launched in 2023, it targets Michigan students and professionals considering a career change to express the value of healthcare careers.

The 20th edition of The Economic Impact of Healthcare in Michigan was compiled using IMPLAN® cloud software to quantify healthcare’s significant economic impact in the state. The data represents direct, indirect[1] and induced[2] healthcare jobs; taxes paid by those workers and their employers; and salaries, wages and benefits earned. The report is an online, interactive tool that allows users to examine these economic impacts from a statewide perspective and by region, county or congressional district. It is available at www.economicimpact.org.

[1] Indirect jobs are those created to support a larger employer or industry (for example, a laundry that cleans linens for a hospital).

[2] Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers).

In the Middle of Nowhere and Everything: Why Our Community Hospital Matters

Laura Peariso, Senior Director, Healthcare Information, MHA, written in honor of National Hospital Week

I live in a rural town—what I call the middle of nowhere, and everywhere. We’re miles from the nearest city, surrounded by open space instead of traffic. But out here, you learn to value what’s close. In the city, everything is nearby. Out here, everything is a drive—but what’s nearby is priceless.

One week before my son turned ten, my husband, Doug, was diagnosed with pancreatic cancer. That moment shattered our world, but it also showed us the quiet strength of something we’d always had: our community hospital.

I sent Doug to Memorial Healthcare’s Emergency Department because I knew he would be seen quickly. Their ED is efficient, sharp with diagnostics, and will transfer you if needed. But for the next 16 months, Memorial became more than just a place that could help—it became our medical home.

We consulted with other hospitals for opinions and eventually surgery. But nearly all of Doug’s care happened just 10 miles down the road. That mattered more than I can explain. When you’re going through something as intense and draining as cancer treatment, being at home matters. Being where you’re comfortable, where your son can visit after school, where you can drive back to him after a long day holding him and help him prepare for what no child should have to face.

There are so many appointments for cancer treatment.  Doug completed 28 rounds of chemo. On days I couldn’t be there, he had access to a volunteer ride service to safely get him to treatment. Small town, big heart.

When it came time to make end-of-life decisions, we had a choice: transfer to another hospital for one more procedure—or enter hospice. He needed to be home. And home wasn’t just our house. It was Memorial. It was the physicians, nurses and staff who had walked this journey with us. It was familiar faces, voices that knew his name, and caregivers who understood our story without needing to be told. From diagnosis to after his last breath he was home.

Doug’s hospice nurse had a daughter in our son’s class. That’s what it’s like here. You see the people who cared for your husband at the grocery store. At the school pickup line. At church. These aren’t just healthcare providers. They are neighbors. They are the people who held us up during the hardest days of our lives.

This is what a community hospital means. It’s not just about proximity. It’s about trust, dignity, and being surrounded by people who care—not just because it’s their job, but because it’s personal.

I will never stop being grateful for that.

That’s why supporting our local hospitals matters—because they support us when we need it most. If you can, donate. Volunteer. Advocate. Share your story. Community hospitals don’t just heal bodies—they hold families together.

MHA CEO Report — Highlighting Hospitals

MHA Rounds image of Brian Peters

“Sometimes when you sacrifice something precious, you’re not really losing it. You’re just passing it on to someone else.” ― Mitch Albom, The Five People You Meet in Heaven

MHA Rounds image of Brian PetersThis month’s CEO Report is being filed from Washington, DC, where I am honored to join my colleagues from throughout our state and nation at the American Hospital Association’s Annual Meeting. On the agenda are robust conversations about the many challenges confronted by the healthcare field amid a tumultuous and often unpredictable political environment. The timing is fortuitous, as we officially celebrate our healthcare providers with National Nurses Week beginning May 5, followed by National Hospital Week. These honorary weeks shine a spotlight on the amazing dedication of hospital and healthcare workers in service to their patients and communities and encourage us to show our deep appreciation.

Our nurses, and many other healthcare workers, were widely hailed as heroes throughout the pandemic, and the reality is that they continue to show extraordinary commitment to service on a regular basis.  Just one recent example: northern Michigan was ravaged by a devasting ice storm earlier this year and despite power outages that were measured in weeks, the healthcare providers in that region did whatever was necessary to make sure people received the medications and care they needed. This included utilizing snowmobiles and ATVs for patient and staff transport when countless roads remained inaccessible due to downed trees and power lines.

Hospitals annually quantify the benefits they provide to the community through the IRS 990 form, and the MHA disseminates our own Community Impact Report. However, in reality, it is impossible to adequately document or fully do justice to the examples shared above, and countless others.  Healthcare interactions change people forever. And I’m not talking about the physical changes from surgery or treatment, but the emotional impact that saving a life, lending a helping hand or crying shoulder can make for someone. In times of need, emergency and disaster, hospitals – and more specifically, the people who work inside of them – are there WHEN and WHERE you need them. The sacrifices made by these extraordinary people are real, and they do so for our benefit.

Later this month we’ll be able to share our latest economic impact and workforce data for Michigan hospitals and healthcare. While the data may be slightly different, the overall story remains the same: healthcare is the leading private-sector employer in Michigan and the demand and reliance on healthcare has never been greater. So, what can we do to help? May is a time to unite behind our healthcare institutions and the work they do every day to touch and change lives, improving the health and wellness of our communities. While Congress continues to contemplate potential Medicaid funding cuts that would have devasting consequences to healthcare access for all Michiganders, please join us in speaking up and sharing the importance Medicaid plays in our state. You can do so by using the MHA’s action alert to send a personalized message to your member of Congress. Your local hospitals – and more importantly, the nurses, doctors and other healthcare workers who work there – need your help.

As always, I welcome your thoughts.