Recent Economic Study Shows Harvard Hospitals Create Jobs

A recently released study shows that a group of Harvard-affiliated hospitals and medical operations in the Longwood area of the city annually produces almost $450 million in revenue for Boston.

The Longwood area hospitals have an annual payroll of $250 million, which is almost half the city's total payroll for health and medical services. Hospital employees produce a revenue of $450 million in the city through the creation of other jobs, and also spend or bank half their pay in the city.

Organizations, including Fair Share, the Mission Hill Health Movement and the Residents United to Stop Harvard on Mission Hill (RUSH), have long opposed the tax-exempt status of the Longwood area hospitals.

John M. Grady, a member of RUSH, said yesterday that he thinks the study reflects a fear on the part of the institutions. "If some of the Fair Share demands are put into effect, then these institutions are going to have to start providing more funds to the community through taxes. Their only response is to come out with these massive figures."

The Medical Area Services Organization (MASCO), which is owned in part by Harvard, "asked us to figure out a way to show the positive economic and financial aspects of these hospitals, as it would have a salutary effect on easing the long run discussions about tax-exempt property in the city." James E. Howell, a senior vice president of the First National Bank of Boston, which performed the study, said.

Howell added MASCO had requested the study because "in a city as small as Boston there is always pressure to tax these institutions."

Antiseptic

"MASCO encouraged the study because we felt that this information ought to be available to the public. Hospitals are a tremendously important business in terms of the city's economy," David Elovitz, executive vice president of MASCO said yesterday.

Michael E. Stone, an associate professor at UMass in Boston, said yesterday that the resources to pay for the $250 million in hospital jobs comes from medical payments, medical insurance premiums, and taxes paid by the people of the city of Boston. He added that because the hospitals are tax-exempt, but also receive city services, "home owners ultimately end up paying for the city services to these institutions.