$135.5 Billion Economic Impact of Illinois Hospitals and Health Systems
Press Release
May 4, 2026
As consistent job creators, hospitals generate 521,000 direct and indirect jobs
NAPERVILLE - Illinois’ more than 200 hospitals and nearly 40 health systems are powerful economic drivers for their communities and Illinois, generating a statewide economic impact of $135.5 billion annually from spending on payroll, supplies, services, and capital, according to a new report released today by the Illinois Health and Hospital Association (IHA).
The new report, “Communities Win When Local Hospitals Are Strong,” highlights the significant contributions of Illinois’ hospitals to the state’s economy, even as they face massive federal funding cuts through the One Big Beautiful Bill Act (H.R. 1). Because of H.R. 1, Illinois hospitals will face up to $57 billion in federal Medicaid funding cuts over the next 10 years. In addition, as many as 300,000 of Illinois’ most vulnerable residents—including children, seniors and the disabled—may lose health coverage, according to the Illinois Department of Healthcare and Family Services.
Among the report’s key findings:
- Hospitals employ 202,000 Illinoisans in good-paying jobs and generate another 319,000 jobs that also support working families;
- For every Illinois hospital job, 1.6 jobs are created in other sectors; and
- Every $1 hospitals spend on payroll, supplies and capital generates an additional $1.40 in economic activity.
“Illinois hospitals and health systems are significant contributors to economic activity in the communities they serve and for the broader state economy,” said IHA President and CEO A.J. Wilhelmi. “As major employers, they provide good-paying jobs, support local contractors and businesses, and continue to promote individual and community health and well-being. Illinois hospitals and health systems are indispensable to communities throughout our state.”
Estimates of Illinois hospitals’ economic benefits were based on the Regional Input-Output Modeling System II (RIMS II) developed by the U.S. Bureau of Economic Analysis (BEA). The Final Demand multipliers, obtained from BEA RIMS II, were applied to 2024/2025 Medicare cost report data of hospital jobs and spending to obtain the “ripple” effect of jobs and spending throughout the economy.
About IHA
The Illinois Health and Hospital Association, with offices in Chicago, Naperville, Springfield and Washington, D.C., advocates for Illinois’ more than 200 hospitals and nearly 40 health systems as they serve their patients and communities. IHA members provide a broad range of services—not just within their walls, but across the continuum of healthcare and in their communities. Reflecting the diversity of the state, IHA members consist of nonprofit, investor-owned and public hospitals in the following categories: community, safety net, rural, critical access, specialty and teaching hospitals, including academic medical centers. For more information, see team-iha.org. Like IHA on Facebook. Follow IHA on X.