About Us
Economic Impact of M. D. Anderson
August 2003While M. D. Anderson has earned a world-wide reputation for achievements in cancer research, patient care, prevention and education, less obvious are the economic benefits the institution brings to Houston and the State of Texas.
A report prepared for M. D. Anderson by Southwest Business Research L.L.C., a Houston business research group, confirms our role as a vital part of the regional and state economies. Here are some findings.
Stimulating the Economy
M. D. Anderson totaled $735.6 million in operating (non-construction) expenses and employees spent an additional $114.3 million in the Houston region in Fiscal Year 2002.
This combination contributed to a total of $1.9 billion in business activity for the local and regional economies (includes initial expenditures, plus additional spending by those receiving income from the purchases).
Creating Jobs
We employed 14,127 persons in FY02 (includes anyone who worked here at some point during the year). Accounting for the influence of business spending and re-spending, 31,614 total jobs in the Houston region were supported by M. D. Anderson’s presence.
Total personal income from the direct and indirect effects of M. D. Anderson-related spending in the Houston region was $1.2 billion in FY02.
Employees purchase most of their consumer goods from local businesses, which collectively earn $44.7 million annually by selling products and services to our employees and other area residents.
Construction Impact
In addition to operating expenditures and employee-related spending, our capital investment spending is steadily increasing. Expenditures related to construction have risen from $46.5 million in FY98 to $172.6 million in FY02.
For the Houston region in FY02, M. D. Anderson’s capital construction activity led to a total direct and indirect economic impact of $225.3 million, personal income of $137.2 million and 3,845 total jobs.
Sales Tax Revenues
Purchases by M. D. Anderson employees and others receiving income from those purchases generate sales taxes collected by the state. The sales tax flow to the state from M. D. Anderson-related business in FY02 is estimated between $45.4 million and $50.1 million.
M. D. Anderson | ||||
| Business | Personal | Durable | Jobs |
Houston Region | | | | |
State of Texas | | | | |
Figure 1:M. D. Anderson’s impact on the local and state economies is demonstrated by its influence on business volume, personal income, durable goods purchased, and jobs supported.
Source of information and calculations: Southwest Business Research L.L.C.