SYRACUSE, N.Y. — A new report finds Upstate Medical University contributes $3.2 billion to the state economy and supports, directly and indirectly, more than 24,000 jobs.
The economic-impact report “underscores the substantial contribution Upstate makes to the regional and state economy,” the health system said in its announcement.
The report — conducted by Kansas City, Missouri–based Tripp Umbach — details Upstate’s “significant influence” in terms of employment, tax revenue, community involvement, and academic and research endeavors.
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“Upstate today is a growing and dynamic force in the economy,” Paul Umbach, president of Tripp Umbach, who authored the report, said in the Upstate announcement.
In fiscal year 2024 (FY24), Upstate Medical University generated an estimated $3.2 billion in total economic impact for the state of New York, nearly doubling its impact from $1.7 billion in 2008, the report found. This growth, driven by Upstate’s health-care services, educational programs, and research initiatives, “demonstrates the vital role” the institution plays in advancing the economy and health-care infrastructure, the health system contended.
In a breakdown by geography, Upstate Medical University’s economic impact for Central New York is $2.8 billion, for Onondaga County the impact is $2.6 billion, and for the City of Syracuse the impact is $1 billion, per the report.
“We are proud of the Upstate tradition of excellence in education, research, and patient care, which not only enhances the well-being of our communities but also generates substantial economic and social value for Central New York and New York state,” Dr. Mantosh Dewan, president of Upstate Medical University, said. “The continued growth in our economic impact reflects the work of our students, faculty, staff, and healthcare providers, and our commitment to driving innovation in medicine and healthcare delivery.
Definition of economic impact
Economic impact begins when an organization spends money, per the Upstate announcement.
Economic-impact studies measure the direct economic impact of an organization’s spending, plus additional indirect and induced spending in the economy as a result of direct spending. Direct economic impact measures the dollars that are generated within New York because of the presence of Upstate Medical University.
This includes not only spending on goods and services with vendors across the state and the spending of its employees, patients, and visitors, but also the business volume generated by businesses within New York that benefit from Upstate’s spending.
Upstate also stressed that it’s important to remember that not all dollars spent by Upstate stay in New York. Dollars that go out of the state in the form of purchases from out‐of‐state vendors aren’t included in the economic impact that Upstate makes on the state of New York.
The total economic impact includes the “multiplier” of spending from companies that do business with Upstate Medical University. Support businesses may include lodging establishments, restaurants, construction firms, vendors, and temporary agencies.
Spending multipliers attempt to estimate the ripple effect in the state economy where the spending occurs. For example, spending by Upstate with local vendors provides these vendors with additional dollars that they re‐spend in the local economy, causing a multiplier effect.
