The 2025 Economic Impact of Healthcare in Michigan report shows the $106 billion total economic impact health care had in fiscal year 2023. // Stock photo
The health care industry in Michigan contributes more than $100 billion annually to the state’s economy and is its largest employer accounting for over 1 million direct and indirect jobs, according to the Lansing-based Michigan Health and Hospital Association’s 2025 Economic Impact of Healthcare in Michigan report.
Published this week in recognition of National Hospital Week (May 11-17), the report reveals the $106 billion total economic impact health care had in fiscal year 2023, the most recent data available.
The report also details the more than 1 million jobs that are either directly, indirectly, or induced by health care 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 percent of health care’s direct tax revenue and remaining the largest health care sector in the state, according to the report.
“The success of Michigan’s economy is closely connected with the strength of our health care system,” says Brian Peters, CEO of the Michigan Health and Hospital Association. “Health care is the foundation for many local communities.
“As Michigan ages and more individuals need complex care, the demand for health care services and workers continues to grow — and hospitals must meet that demand.”
Also released were 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 percent of all Michigan acute-care inpatient hospitals.
The results of the workforce survey also show Michigan hospitals continue to outperform national nurse retention rates. The registered nurse turnover rate for Michigan hospitals is 2.3 percentage points lower than the national average of 16.4 percent. Collectively, Michigan hospitals now employ roughly 64,500 RNs.
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 health care careers.
The 20th edition of The Economic Impact of Healthcare in Michigan, a summary of which can be viewed here, was compiled using IMPLAN cloud software to quantify health care’s economic impact in the state. The data represents direct, indirect and induced health care jobs; taxes paid by those workers and their employers; and salaries, wages, and benefits earned.
The full report is available here and allows users to examine economic impacts from a statewide perspective, and by region, county, or congressional district.
