The Greater Boston Chamber of Commerce engaged ESI to conduct the first comprehensive, aggregate economic impact analysis of Massachusetts’ higher education and healthcare institutions, collectively known as “Eds and Meds”. While individual institutions frequently publish their own economic contributions, no prior study had quantified their combined impact across Boston, the Greater Boston region, the Commonwealth of Massachusetts, and the United States.
ESI employed a customized economic impact model using IMPLAN input-output software, grounded in U.S. Bureau of Economic Analysis data. The analysis incorporated 88 universities and colleges and 93 health systems across the Commonwealth.
The study evaluated four primary drivers of economic impact:
- Annual Operations: Direct spending on payroll, procurement, and research activity.
- Capital Investments: New construction, major renovations, and infrastructure upgrades.
- Ancillary Spending: Off-campus expenditures by students, patients, and visitors.
- Alumni Wage Premium: The incremental earnings generated by Massachusetts graduates over their lifetimes.
Data were compiled from institutional financial statements, prior impact studies, association-provided data (including AICUM and the Massachusetts Health & Hospital Association), and public sources.
The report demonstrates that Massachusetts’ Eds and Meds serve as the foundation of the Commonwealth’s economy:
- $155.9 billion in annual economic output statewide
- 858,120 jobs supported, representing more than 1 in 5 jobs in Massachusetts
- $71.1 billion in employee compensation
- $4.1 billion in annual state tax revenue and $7.9 billion in federal tax revenue
ESI’s findings equip the Chamber and its partners with a defensible, data-driven foundation to inform public policy advocacy, protect research and healthcare funding, and communicate the economic importance of these institutions to legislators, business leaders, and the public. It reframes Eds and Meds not only as mission-driven institutions, but as essential economic infrastructure.