Impact report details the ripple effects of hospitals and health systems across jobs, research, community investment, and world-class patient care

BURLINGTON, MA – February 5, 2026 – Healthcare continues to expand its prominence as the commonwealth’s most essential sector, as highlighted in a new report from the Massachusetts Health & Hospital Association (MHA).

The report, Frontline of the Economy: The Ripple Effects of Massachusetts Healthcare, examines the healthcare sector’s deep influence on the commonwealth’s economic success, working families, global innovation leadership, and community investment. It finds that hospital activity generates $94 billion in economic output each year, accounting for one-eighth of Massachusetts’ economy and exceeding the GDP of seven states. The report also shows that hospitals are a leading source of employment, adding 10,000 jobs since 2020 and directly employing 207,000 people with a median annual salary that is 36 percent higher than the state median. In total, hospitals and health systems support 452,000 jobs statewide, representing 12 percent of all jobs across sectors.

“Healthcare is what distinguishes Massachusetts as a global leader. It cannot be outsourced, replaced, nor taken for granted,” said Steve Walsh, president and CEO of the Massachusetts Health & Hospital Association. “That’s why everything we do as a commonwealth – from the policies we implement to the resources we invest – should center on the system’s strength and stability.”

At the center of Massachusetts’ innovation economy are its hospitals and health systems, which draw $4.3 billion annually in federal research funding and serve as the launchpad for breakthroughs that save and change worldwide. From discovering genes linked to Alzheimer’s disease to pioneering CAR-T therapies, developing leading COVID-19 vaccines, and supporting more than 5,700 active clinical trials, Massachusetts hospitals continue to pave the way for the future of healthcare. The commonwealth’s healthcare sector also serves as a primary training ground for the next generation of clinicians, educating more than 4,600 medical residents and 4,000 nursing graduates each year.

“Massachusetts hospitals save lives every day by providing the highest quality care in the country, while also supporting hundreds of thousands of jobs and generating tens of billions of dollars for our economy,” said Governor Maura Healey in the report. “I’m grateful for the amazing work of our healthcare professionals and hospital leaders, and we are committed to making sure they continue to receive the support they need to deliver these results.”

Beyond lifesaving innovation and economic impact, Massachusetts hospitals are deeply rooted in the communities they serve. In fiscal year 2023, hospitals devoted approximately $4.2 billion to subsidized care for low-income patients and community-based health programs, partnering with schools, faith-based organizations, first responders, and local advocates to address disparities and improve health outcomes.

Taken together, these efforts have helped Massachusetts earn the #1-ranked health system – including for access, healthy lives, and prevention of avoidable deaths from treatable causes.

A full copy of the report is available here.

FEATURED VOICES:

“Healthcare is not just central to the wellbeing of Massachusetts residents, it is one of the most important drivers of our economy. Hospitals and health systems support hundreds of thousands of jobs, generate billions in economic activity, and anchor local economies in every region of the state. Their stability and success ripple outward, sustaining families, supporting our state’s unmatched quality of life, fueling innovation, and reinforcing Massachusetts’ long-term competitiveness.”

Secretary Eric Paley, Massachusetts Executive Office of Economic Development

“Innovation drives better care and stronger communities across Massachusetts. By advancing new treatments, technologies, and ideas, our hospitals help ensure the commonwealth remains a leader in health and opportunity.”

Anne Klibanski, M.D., President and CEO, Mass General Brigham; Chair, MHA Board of Trustees

“As our communities face continuing disparities in healthcare access, the Community Benefits program fills a gap in community health by encouraging our hospitals and HMOs to use their resources to creatively tackle pressing public health issues across the commonwealth. I am encouraged to see Massachusetts hospitals and HMOs developing programs to help our residents access services that improve their social determinants of health.”

Attorney General Andrea Joy Campbell

“Massachusetts consistently ranks number one in the Commonwealth Fund’s State Scorecard on State Health System Performance, leading the nation in access to care, quality, and health outcomes. This isn’t a coincidence, but instead a testament to the choices policymakers and healthcare leaders in Massachusetts have made to prioritize access to high-quality healthcare.”

Joseph R. Betancourt, M.D., President, The Commonwealth Fund