Health Care Report: Biohealth Industry Directly Contributes $27 Billion to State Economy

October 16, 2018

Wisconsin’s biohealth industry directly contributed $27 billion to the state economy in 2017, a new report from BioForward Wisconsin shows. The number for overall economic output activity from direct, indirect and induced sources is even higher—nearly $48 billion. 

The report, compiled by Baker Tilly, was commissioned by BioForward. The report reflects data from 2014 through 2017, the most recent year available. BioForward defines biohealth as the intersection of biotech, biopharma, medical device, diagnostics, health care systems, digital health, and research institutions. 

The report shows the state’s biohealth industry directly supported more than 107,000 jobs last year, up 17 percent from the previous report. The industry’s Wisconsin manufacturing supply chain has direct economic output estimated at $13.3 billion annually from companies located in the state that supply products to global biohealth firms.

The Health care sector has an estimated 59,472 direct jobs and $6.68 billion in annual labor income to stimulate the Wisconsin economy, and is estimated to provide over $9.9 billion in direct economic output. The median wage for health care jobs was $75,011. Health care providers made up 2,088 of the 4,320 biohealth companies operating in the state in 2017.

Most biohealth jobs are clustered in Milwaukee and Dane counties, with each having between 8,000 and 35,000. That’s where some of the state’s biggest biohealth employers are located: Promega, in Madison; Aurora Health Care, Milwaukee; and GE Healthcare, Madison.

The report also shows about $43 billion in federal grant money was given to Wisconsin between 2013 and 2017. It’s noted that university-driven research “dominates” federal grant resources in the state, with 12 Wisconsin campuses getting over $3 billion since 2015. About $755 million was divided between five private colleges and universities, and $2.3 billion went to seven UW System campuses.

Meanwhile, businesses received more than $154 million in research grants, and nonprofit research entities got more than 
$87 million.

See the full report.
 

This story originally appeared in the October 16, 2018 edition of WHA Newsletter