Big Reach Economic Impact Report The Children’s Hospital of Philadelphia

Big Reach
Economic Impact Report
The Children’s Hospital of Philadelphia
Table of Contents
Economic Impact Report of The Children’s Hospital of Philadelphia (CHOP)
The reach and reputation of one of the world’s premier pediatric hospitals
and research centers generate extraordinary impact within the region.
Big Reach: An Overview of CHOP
More than a million patient visits annually, top rankings,
one of the largest Care Networks in pediatrics, and more.
Big Construction: Capital Investments
CHOP’s planned construction expenditures are the equivalent of
adding two Comcast Centers to the region in the next seven years.
Big Employer: Supporting Many Jobs
CHOP’s $2 billion annual budget and employment of approximately
10,700 people have a significant positive effect on the region.
Big World: Global Destination, Global Partner
CHOP is a global leader in research and care, drawing many
international families and fostering partnerships around the world.
Big Influence: Drawing Many
CHOP draws thousands of patients, students and visitors, and their
spending stimulates local economic growth.
Growing and growing: The Children’s Hospital of Philadelphia will open a state-of-the-art
ambulatory care building in 2015, across from its Main Hospital in West Philadelphia.
Big Reach:
An Overview of CHOP
By the Numbers
In Fiscal 2012
Hospital Admissions28,761
Patient Days 151,266
Number of Beds 480
Number of Employees 10,700
Outpatient Visits 1,167,145
2012–2013 Rankings
In the 2012–13 U.S.News & World Report Best
Children’s Hospitals survey, CHOP was No. 1 in
six of 10 specialties ranked, was in the top four in
all 10 specialties, and tied for the top spot overall.
Cancer; Diabetes & Endocrinology;
Gastroenterology; Orthopedics;
Pulmonology; Urology
Cardiology & Heart Surgery;
Nephrology; Neurology &
Parents magazine named
CHOP the best children’s
hospital in the United States
in its March 2013 issue.
4 |
Reach and Reputation: The Children’s
Hospital of Philadelphia (CHOP) is an
international leader in pediatric care and
research. It draws patients and families
from around the world. It attracts toptier physicians, scientists and other
professionals to live and work in the
Philadelphia region. It is one of the region’s
largest employers. Its Care Network is one
of the largest in pediatrics, with more than
50 locations. The Hospital’s operations,
reach and reputation confer significant
economic benefit on Philadelphia,
Pennsylvania and New Jersey.
National Draw: Patients
and their families travel to
CHOP from nearly every
state and territory.
Caitlyn, 6 months, from
Florida, was treated for
congenital hyperinsulinism.
Regional Reach: CHOP draws
patients from all 21 counties in
New Jersey and 65 of 67 counties
in Pennsylvania.
Saint Peter’s
University Hospital
(Cardiac Center)
Grand View Hospital
High Point
Main Campus
CHOP Newborn Care
CHOP Pediatric Care
CHOP Newborn & Pediatric Care
West Grove
West Chester
North Hills
Kennett Square
Chester Co.
Chadds Ford
Abington Hospital
Holy Redeemer Hospital
Salem Road
Pennsylvania Hospital
University City
Market Street
Mt. Laurel
Hill South
Specialty Care Center
Specialty Care Center & Home Care
Primary Care
Specialty Care & Surgery Center
at Princeton
King of Prussia
Phoenixville Hospital
Doylestown Hospital
Indian Valley
Central Bucks
Bucks County
Atlantic County
Harborview/Somers Point
Shore Memorial Hospital
CHOP Newborn Care
CHOP Pediatric Care
CHOP Newborn & Pediatric Care | 5
Primary Care
Specialty Care Center
Specialty Care Center & Surgery Center
Harborview/Cape May Co.
Big Construction:
Capital Investments
Building Hope: The Children’s Hospital of
Philadelphia is in the midst of a multi-billion dollar
expansion of its Main Campus in University City
(34th Street and Civic Center Boulevard), and
plans expansions at Care Network sites in King of
Prussia, Pa., Voorhees, N.J., and Princeton, N.J.
Philadelphia Mayor Michael Nutter
with CHOP CEO Steven Altschuler,
M.D., at a ceremony in 2011
announcing the expansion of CHOP’s
Philadelphia campus
Over the next seven years CHOP plans $1.7 billion
in capital expenditures, roughly equivalent to
adding two Comcast Centers to the region. The
impact of this spending includes tax revenues and
job creation — particularly meaningful in times of
slack construction demand, high unemployment
and distressed public finances.
This rendering shows the Ambulatory
Care Center, now under construction,
across from the Main Hospital on Civic
Center Boulevard. The 700,000-squarefoot, 12-story building is slated to open in
2015 and promises to be the most advanced
pediatric outpatient care facility in the world.
The building includes natural light-filled
reception areas and five levels of underground
parking. The design is for growth: The
structure will have the capacity to expand
to 16 floors and 875,000 square feet.
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CHOP’s projected capital investments
from 2013 to 2019 will within the:
• City of Philadelphia generate an estimated one‐
time total of $2.15 billion in expenditures and
support about 9,100 jobs, resulting in about
$22 million in tax revenues.
Commonwealth of Pennsylvania generate an
estimated one‐time total of $3.67 billion in expenditures
and support about 31,500 jobs, resulting in about
$83 million in tax revenues.
• State of New Jersey generate an estimated one‐time
total of $74 million in expenditures and support about
470 jobs, resulting in about $2 million in tax revenues.
Main Hospital: 480-bed facility accommodates
nearly 30,000 inpatient admissions each year
Richard D. Wood Pediatric Ambulatory
Care Center: Outpatient care for oncology,
orthopedics and much more
Children’s Seashore House: Rehabilitation
and care for children with injuries, chronic illness
and developmental disability
Ruth and Tristram Colket Jr. Translational
Research Building: 11-story, $500 million
research facility opened in 2010
Ambulatory Care Center: State-of-the-art
outpatient building opening in 2015 (see rendering
opposite) and future site of a 2.6-acre landscaped
public plaza connecting the Ambulatory Care
Center to the Colket Building
Leonard and Madlyn Abramson
Pediatric Research Center: 14-story
research facility opened in 1995 | 7
Big Construction: Capital Investments (continued)
Commitment Close to Home:
The Children’s Hospital of Philadelphia
provides the highest level of care to children
in the West Philadelphia neighborhoods
surrounding its Main Campus. The new $30
million Nicholas and Athena Karabots Pediatric
Care Center at 48th and Market streets will
accommodate 45,000 appointments annually.
CHOP CEO Steven Altschuler, M.D.,
with Nicholas and Athena Karabots, at the
groundbreaking ceremony for the new primary
care center named in their honor.
The 52,000-square-foot Karabots Center
includes 56 exam rooms, rooms dedicated to
radiology and hearing and vision testing,
and a phlebotomy laboratory.
Economic Impact
From CHOP’s projected capital investments, 2013 to 2019
8 |
City of
$2.15 billion
9,100 jobs
$22 million
Commonwealth of
$3.67 billion
31,500 jobs
$83 million
State of
New Jersey
$79 million
500 jobs
$2 million
New Jersey Facilites
Strong Presence in New Jersey:
CHOP is committed to providing world-class care
to the children of New Jersey. There are 14 CHOP
facilities in New Jersey, including a new CHOP
Specialty Care Center at Virtua Voorhees and a
primary care practice in Gibbsboro. Construction is
also planned for a CHOP Specialty Care Center at
the University Medical Center at Princeton campus
in Plainsboro (architectural rendering above).
In fiscal year 2012, there were approximately
200,000 patient encounters at CHOP’s N.J.
locations, including primary care visits, outpatient
surgeries, and visits with specialists such as
cardiologists and oncologists.
CHOP and New Jersey celebrated the opening
of the CHOP Specialty Care Center at Virtua
Voorhees in June 2012. Above from left: New
Jersey Assemblywoman Pamela Lampitt, CHOP
CEO Steven Altschuler, M.D., Virtua President
and CEO Richard Miller, New Jersey Assembly
Majority Leader Louis D. Greenwald, and
CHOP President and COO Madeline Bell.
Left, at the CHOP Specialty Care Center,
Atlantic County (in Mays Landing), children
can see cardiologists, gastroenterologists, physical
therapists, orthopedic specialists and more.
The center also houses the Children’s Intensive
Emotional and Behavioral Program, a
psychiatric day hospital with the mission of
helping children with social and behavioral
needs function better at home and school. | 9
Big Employer:
Supporting Many Jobs
CHOP maintains an annual budget
of approximately $2 billion and
employs approximately 10,700 people
in a variety of professions all making a
difference in the lives of children.
The more than 550 employees of
CHOP’s Environmental and Linen
Services Department help keep the
hospital running cleanly.
Economic Impact
From CHOP’s annual ongoing operations
10 |
City of
Commonwealth of
State of
New Jersey
14,000 jobs and
$700 million
in earnings
32,000 jobs and
$1.1 billion
in earnings
1,700 jobs and
$70 million
in earnings
Employment Impact
job growth
Between 2009 and 2011, during a
time of significant unemployment and
stagnant job growth, CHOP increased
its headcount by almost 1,400.
Physicians, researchers, nurses and support staff gathered to
celebrate the results of a study that showed that in utero surgery
for spina bifida, a treatment pioneered at CHOP, leads to better
outcomes for children. The surgery is now a standard of care.
The Children’s Hospital of Philadelphia
is one of the City’s largest employers.
= 1,000 employees
industry employs
approximately 5,200.
industry employs
approximately 7,500.
Great care takes a team: Physicians and nurses surround
an injured patient in the Emergency Department.
CHOP employs
approximately 10,700.
Philadelphia photo courtesy of GPTMC. | 11
Big World:
Global Destination,
Global Partner
CHOP’s global connectivity and perspective are ever increasing. The Philadelphia region is able to claim
as its own an institution with a worldwide reputation not only for excellence, but also for a deep interest
in global engagement. This brings a halo effect to the region and makes it more attractive to outsiders,
particularly in the arenas of healthcare and science.
Global Partner
In 2011, CHOP formed a partnership with BGI (formerly
Beijing Genomics Institute) to conduct large-scale human
genome sequencing and bioinformatics analysis at a state-ofthe-art center at CHOP. The partnership focuses on discovery
of genes underpinning pediatric diseases.
Left: The first of its kind in pediatrics,
CHOP’s bio-repository core has the capacity
to store more than two million DNA
samples. Trays of coded samples (inset) are
stored in test tubes, suspended at -20 degrees
Celsius, and retrieved by a high-tech robot.
Research Leader: CHOP has more than
800,000 square feet in research space and an
annual research budget of more than $280
million. Nearly 70 percent of grants are from
federal sources, a significant importation of
funds from outside the region.
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Global Model
The Beijing Aiyuhua Hospital for Women and Children will
open in 2014 — and CHOP will be providing management
consulting. CHOP is helping the 300-bed pediatric hospital
in areas of patient safety, facilities planning and information
technology with the goal to become accredited by the Joint
Commission International, the gold standard for hospitals.
CHOP CEO Steven Altschuler, M.D., with Ms. Liu Jian,
Chairwoman, Beijing Guotongxintai Investment Company,
during the signing ceremony
Global Reach
Through its Global Health Program, CHOP
hosted the Fifth Annual Pediatric Global
Health Symposium: Reconciling Compassion
with Practice in Global Health. In addition,
CHOP continues to provide support for
children in the Dominican Republic,
South Africa and Botswana, and the
third group of Pincus Global Health Fellows
will be starting in July 2013.
Above: A team from
CHOP’s clinic in the
Dominican Republic visits
women in a local barrio.
Left: Global Health team
member Henry Welch, M.D.,
works with clinic staff in Botswana. | 13
Big Influence:
Drawing Many
CHOP is considered a national and world leader in high-acuity care, such as surgery for children with heart
defects, challenging tumors and other life-threatening disorders. Families, faculty and researchers travel to
CHOP from around the country and the world, seeking to receive care or learn from the best. They bring
purchasing power to the region.
Traveling for Care
•About 20 percent of CHOP’s 28,400 inpatient admissions in 2011
were patients residing outside the 11-county Philadelphia region.
•In fiscal year 2012, CHOP’s International Patient Services team
coordinated care for approximately 300 children from 47 different
countries, representing 2,900 inpatient days and 3,900 outpatient
visits. The number of children seen at CHOP increased by 35
percent over 2011. Nearly 60 percent of patients are from the
Middle East.
Traveling to Learn
•The International Medical Education Program supported efforts in
Austria and Chile and facilitated more than 50 medical professionals
from around the world to have training at CHOP.
•CHOP hosts a significant number of conferences, research symposia
and other events which draw from across the nation and the globe.
These events help brand the region as a gathering place for topnotch educational opportunities.
Above: Sultan traveled to Philadelphia from the United
Arab Emirates for surgery for a rare spinal disorder.
The International Medicine Program draws patients
from around the world. The red pins in the map at left
show CHOP’s reach.
14 |
To help and to
heal children
is the biggest
impact of
The Children’s
Hospital of
The facts and figures in this document are taken
from an economic impact study prepared by
Econsult Corporation® in 2012.