OTTAWA – The Association of Faculties of Medicine of Canada (AFMC) released a ground breaking report on the economic impact of Canada’s Faculties of Medicine and their health science partners. This new report marks the end of an in-depth study showing how the investment in academic medicine stimulates our economy, creates jobs and generates tax revenues that benefit all Canadians.
“This is the first time that we have solid data telling us how Faculties of Medicine contribute to the economic and social fibre of Canada.” said Dr. Hélène Boisjoly, Chair of AFMC’s Board of Directors. “The results are striking and give us new insight on how Faculties of Medicine create jobs and economic livelihood in communities throughout this country.” continued Dr. Boisjoly.
STUDY HIGHLIGHTS:
- Faculties of Medicine and their teaching hospitals account for $66.1 billion in total economic impact. This represents 3.5% of GDP in Canada.
- Faculties of Medicine and their teaching hospitals create more than 295,000 jobs throughout Canada. This figure includes Canadians who are directly employed by medical faculties and teaching hospitals as well as those whose jobs depend on academic medicine.
- One in 60 jobs in the country is attributable to faculties of medicine and their health science partners, representing 1.7% of all employment in the country.
- Faculties of Medicine and their hospital affiliates generate more than $13.9 billion in government tax revenue. This figure is in addition to the $66.1 billion contribution to Canada’s GDP.
“We have long known that doctors improve the health and quality of life of Canadians.” said Dr. Geneviève Moineau, President and CEO of the Faculties of Medicine of Canada. “Faculties of Medicine and their health science partners deliver high-quality medical care, carry out advanced research, stimulate new business development, and educate the medical professionals of tomorrow. This new study gives us a more complete picture of how that activity translates into economic impact and job creation.” concluded Dr. Moineau.
You can view the complete economic impact study here.
The study was commissioned by the AFMC and carried out by Tripp Umbach, a recognized consulting firm that has completed more than 150 economic impact studies over the past 25 years. The study measured both the direct and indirect economic impact of all 17 Canadian Faculties of Medicine and their primary teaching affiliates. Direct impact includes items such as institutional spending, employee spending, and spending by visitors. Indirect impact includes results from the re-spending of dollars generated directly by the institution. Primary data utilized in this study was collected from the AFMC as well as individual faculties of medicine between October 2013 and March 2014. In collaboration with AFMC staff, Tripp Umbach developed a customized data collection form to fill data gaps that could not be addressed with existing data sources. While the study results provide first-ever estimates of economic impact, they do not reflect broader influences related to commercialization, research spin-offs and difficult-to-measure community benefits.
The Association of Faculties of Medicine of Canada (AFMC) represents the country’s 17 faculties of medicine and is the national voice for academic medicine. Our organization was founded in 1943 and functions to support individually and collectively Canada’s medical schools through promotion of medical education, research, and clinical care.
August 11, 2014