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University of Rochester & Affiliates
2017 NYS Economic Impact
June, 2018

Prepared for:
University of Rochester
Prepared by:
Michael Silva
Project Manager
Kent Gardner, Ph.D.
Project Advisor

© CGR Inc. 2018 – All Rights Reserved
1 South Washington Street, Suite 400, Rochester, New York 14614
(585) 325-6360 • info@cgr.org

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 i

Summary
The University of Rochester (UR) engaged CGR to assess the economic and fiscal
impact of the University and its affiliates on the State of New York during 2017. This
report is the fourth in a series of reports exploring the impact of the University over the
past decade. As with previous reports, CGR analyzed the broad diversity of specialized
academic schools and affiliated organizations to develop a profile of the University’s
wide ranging economic and fiscal impact.
Education and healthcare are a major part of New York’s economy. The Bureau of
Economic Analysis estimates that 20% of all jobs and 15% of all income in New York
State are attributable to the education and healthcare sectors. The importance of
these two sectors is especially notable in Upstate New York. With nearly 31,000
employees (roughly 27,000 FTE) the University of Rochester (and its affiliates) is the
largest private employer in Upstate New York and ranked 5th across the Empire State in
terms of full-time equivalent employment. These employment figures are growing.
UR directly employs about 2,300 more FTEs from two years ago (a 9% increase) and
9,000 more people than a decade ago.
Table 1 – University of Rochester and Affiliates Employment in 2017*

University of Rochester**
University of Rochester Affiliates
Highland Hospital
FF Thompson
UR Medicine HomeCare/VNS
The Highlands***
Noyes Health
Jones Memorial Hospital
NextCorps****
Total

Headcount

FTE

23,877
6,938
2,819
1,615
728
704
561
498

21,182
5,723
2,314
1,489
622
485
438
362

13

13

30,815

26,905

*Excludes St. James Hospital as they were not a UR affiliate in 2017
**See the introduction of the full report for a complete list of who is included
***Includes Highlands at Brighton, Highlands at Pittsford, and Highlands Living Center
****Formerly High Tech Rochester, Includes Excell Partners, Inc.

Additional jobs come as a result as UR purchases goods and services from their
vendors, and their employees spend their paychecks. UR directly paid about $2.13
billion to its workforce in 2017. Major capital investments made by UR support
construction and related jobs in the economy. Over the last five years, UR has
averaged about $290 million annually in capital investment spending. UR students
also contribute as they annually spend an estimated $99 million in the economy.

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Outside visitors to UR commencement, conferences, cultural, sports and other events
support additional jobs in the economy.
All told, UR is responsible for sustaining a total of about 59,700 jobs in the NYS
economy, up by 5,000 jobs since 2015. The “traded sector,” the subset of jobs
resulting from spending from outside the region, also posted a 7% increase from 2015,
totaling about 36,600 jobs in 2017.
Table 2 - University of Rochester’s Employment Impacts (thousands of jobs)
Traded Sector
Area of Business Activity

Local & Traded Sectors

Direct

Spillover

Total

Direct

Spillover

Total

Employment Impact
Purchases Impact
Capital Investments Impact
Student Spending Impact
Visitor Activity Impact

16.6
1.0
2.3
0.5
0.1

16.8
0.5
1.2
0.2
0.0

33.4
1.5
3.5
0.7
0.1

26.9
1.6
2.3
0.5
0.1

25.9
0.9
1.2
0.2
0.0

52.8
2.6
3.5
0.7
0.1

Total

20.4

18.8

39.2

31.4

28.3

59.7

Totals may not sum due to rounding

If UR’s research enterprise was viewed as a separate company, it would employ about
2,800 FTEs, with 1,400 additional jobs being created in the economy as a result of
spending spillover effects. The research performed by UR’s research enterprise attracts
outside funding. Facilities like UR’s Clinical & Translational Science Institute (CTSI) and
the Goergen Institute for Data Science draw in significant amounts of outside funding
to the region. Over the last five years, external funding totals more than $1.7 billion.
UR attracted a total of $342 million in external funding (federal and non-federal) in
2017.
The intellectual property created by UR resulted in 73 patents and 106 invention
disclosures in 2017. Thirty-three start-ups were formed from FY 2007 to 2017.
Seventy-six percent of them remain open for business, significantly higher than the
47% national average.
UR has made considerable capital investments in the last decade. As previously noted,
this supports jobs in the construction and related fields. Sometimes these investments
are highly visible with cranes rising above the campus. At other times they are less
noticeable, such as renovating a patient care unit in the hospital with new equipment.
Over the last decade UR’s capital investments total over $2.7 billion. Investments in
developments like Brooks Landing and College Town have revitalized sections of
Rochester. Others like the NextCorps headquarters relocation, help launch the
creation of the City’s Innovation Zone.

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UR Medicine continues to grow its footprint. St. James Hospital in Hornell, NY became
a UR affiliate in early 2018. This hospital, along with Noyes Health and Jones
Memorial, extends UR’s reach outside of the Rochester metro and into the Southern
Tier. UR Medicine’s economic impact totals around 34,800 jobs and $2.1 billion in
payroll.

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Acknowledgements
This report is a team effort between CGR and many University of Rochester
employees. CGR wishes to thank everyone who helped to provide the data necessary
to perform the analysis, including Caroline Ballou, Cheryl H. Bennett, Kevin A. Berg,
Laura Brophy, Lukira S. Carroll, Christine Colaluca, Donna L. Colline, Laurel
Contomanolis, Theresa Danylak, Daryl Drader, Vincenzo Falciano, Debbie Flotteron,
Tom Ford, Diane Frank, Christine Garland, Patricia Giampa, James Helms, Lori A.
Hume, Nisha Johar, Jessica Kaufman, Rebekah S. Lewin, Marina Marchioli, Judy
Marshall, Brian Martin, Theresa B. Mazzullo, Suzanne A. O’Connor, Dennis O'Donnell,
Sarah Peyre, Amy E. Pollard, Christine Rovet, Michael Sauter, Cam Schauf, John M.
Schoen, Mary J. Shierloh, John M. Soures, Roberta Spezzano, Kathleen Strojny, Carl
Tietjen, Lloyd Theiss, Anne M. Tucker and Karen Van Order. In particular, we thank
Josh Farrelman and Mark Michaud for their work/efforts in coordinating data requests,
answering questions and providing feedback on the report.

Staff Team
Mike Silva, Data Analyst, organized and analyzed data, helped define consistent
methodology, and drafted the report.
Amelia Rickard, Research Assistant, assisted with data collection.
Yiwei Wang, Data Analyst, along with Khalid Akram, fellow, and Sarah Comerford,
intern, assisted with the largest employers list.

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Table of Contents
Summary .......................................................................................................................................... i
Introduction.................................................................................................................................... 1
Our Approach................................................................................................................................. 1
What is Measured? ................................................................................................................................... 1
Geographic Scope ................................................................................................................................ 2
Time Period ............................................................................................................................................. 2
Traded vs. Local Sector Impacts.................................................................................................... 2
Types of Economic Impacts ............................................................................................................... 3
Direct Effects ........................................................................................................................................... 3
Spillover Effects...................................................................................................................................... 4
Data Sources and Modeling ................................................................................................................ 4
Our Findings .................................................................................................................................. 5
Economic Impact ..................................................................................................................................... 5
Employment Impact ........................................................................................................................... 6
UR Remains One of the Top Employers in NYS .............................................................. 9
Purchasing Impact .............................................................................................................................10
Capital Construction Impact ......................................................................................................... 12
Capital Project Retrospective ................................................................................................. 13
Future Capital Investments ..................................................................................................... 17
Student Spending Impact ............................................................................................................... 18
Visitor Activity Impact ...................................................................................................................... 19
Economic Impact Summary......................................................................................................... 20
Fiscal Impact ............................................................................................................................................. 21
UR Research Enterprise ....................................................................................................................... 21
External Research Funding ............................................................................................................. 21
Patents, Invention Disclosures and Start-ups....................................................................... 22
Patents Issued................................................................................................................................ 23
Invention Disclosures ................................................................................................................ 23
Start-up Companies ................................................................................................................... 23

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 vi

UR Laboratory for Laser Energetics (LLE)............................................................................... 24
UR Medicine ............................................................................................................................................. 25
Highland Hospital .............................................................................................................................. 26
Conclusion ................................................................................................................................... 27

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 1

Introduction
The University of Rochester (UR) engaged CGR to assess the economic and fiscal
impact of the University and its affiliates on the State of New York during 2017. This
report is the fourth in a series of reports exploring the impact of the University over the
past decade. As with previous reports, CGR analyzed the broad diversity of specialized
academic schools and affiliated organizations to develop a profile of the University’s
wide ranging economic and fiscal impact.
For the purposes of this report, the University of Rochester includes all adjunct faculty,
full-time faculty, post-doctoral fellows, research and teaching fellows, medical
residents, and University staff. In addition, CGR includes all employees of Strong
Memorial Hospital, FF Thompson Health Care, Jones Memorial Hospital, Noyes
Hospital, UR Medicine HomeCare (formerly VNS), Highland Hospital, NextCorps
(formerly High Tech Rochester), Excell Partners, Inc., the Highlands Living Center, UR
Medicine Urgent Care and Labs, and both the Highlands at Pittsford and the Highlands
at Brighton. St. James Hospital is not included in these totals as its affiliation with UR
became official in March of 2018. In expressing the economic impact, CGR refers to
this entire body as University of Rochester.

Our Approach
CGR’s technical approach to analyzing economic impact is consistent with the
standard practice of economic impact analysis. CGR has made every attempt to
replicate the previous study’s methodology, thus providing a consistency of results.
While collecting data for the 2017 report, certain revised data were provided for 2015.
In order to maintain consistency of results, CGR revised the 2015 numbers so that
comparisons between the 2015 study and the 2017 study now reflect the adjusted
2015 estimates.

What is Measured?
CGR’s economic impact studies principally estimate the wages and jobs that an
institution stimulates as a result of its economic activity. We attempt to answer the
question, “How is the economy larger because of this institution’s activity in the
community?” We analyze five primary areas of economic activity conducted by UR in
order to quantify the economic impact. This measures the impact of the use of funds
regardless of the source of funds. The source of funds does determine the allocation
of impact between “traded sector” and the total impact.
The five areas are:



Employment;

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




Purchasing;
Capital Investments;
Student Spending; and
Visitor Activity.

Geographic Scope
This study focuses on UR’s impact within New York State. This is consistent with the
2015 study.1

Time Period
The focus of this study is calendar year 2017, although some data were only available
for the fiscal2 or the academic years. Also given the uneven nature of capital project
expenditures, CGR uses a five year rolling average to estimate the economic impact of
capital investments.

Traded vs. Local Sector Impacts
The goal of any economic impact analysis is to
assess how the economy in question is larger as a
consequence of the activity being studied. In
layman’s terms, the question posed is this: How
would the economy be smaller if the activity were
to disappear?

ECONOMISTS DISTINGUISH
BETWEEN ECONOMIC
ACTIVITIES THAT BRING
DOLLARS INTO A REGION AND
THOSE THAT REALLOCATE
DOLLARS ALREADY “EARNED”
FROM OTHER TRADING.

Economists distinguish between economic
activities that bring dollars into a region (i.e. dollars
earned from trading with other regions) and those
that simply reallocate dollars already “earned” from
other trading. This might be illustrated as activities
that “grow the pie” versus those that change the way the “pie is sliced.” A new grocery
store, for example, will not attract spending from shoppers living outside the region;
instead, the new store only reallocates spending on groceries that would have
occurred anyway.
Although this is an important distinction, the dividing line between a “traded” activity
and a purely local one is not easily drawn for an institution as complex as the
University of Rochester. In theory, the traded sector is defined as those aspects of UR
that would not be provided by another entity if UR did not exist. If UR were to
disappear, the millions of dollars flowing into Rochester to support UR Medicine’s
1

Prior to 2015, CGR analyses of the UR economic impact employed the Rochester Metropolitan Statistical Area as the unit of
analysis. The expansion to statewide impact reflects the expanding footprint of the institution, principally UR Medicine.
2
The fiscal year runs from July 1st to June 30th

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 3

research enterprise would likely not be replaced. By contrast, normal childbirth or
appendectomies would be unlikely to move to Cleveland or Tampa if Strong Memorial
Hospital or Highland Hospital were to close.
It is impossible to allocate every dollar of revenue flowing to an institution like the
University of Rochester according to source, however. Although CGR treats the
educational function of the University as part of the “traded sector,” some UR students
may have chosen to attend another college or university in the region had they not
been accepted at the University of Rochester. We do not attempt to draw such
distinctions in this study.
CGR does, however, distinguish between clinical service
revenue to Strong Memorial Hospital or Highland
Hospital that would likely be earned in the local
STRONG HOSPITAL’S
economy anyway if these hospitals were to close.
HIGHLY REGARDED
Although routine surgery would be performed in the area
LIVER TRANSPLANT
regardless, Strong Hospital’s highly regarded (and quite
PROGRAM ATTRACTS
large) liver transplant program is unusual and attracts
PATIENTS FROM
patients from outside the region. Local residents who
OUTSIDE THE REGION.
receive liver transplants would otherwise travel to
another city if Strong did not provide this service. Analysis of UR Medicine data
suggests that approximately 37% of clinical revenue flowing to Strong Memorial
Hospital is highly specialized. It is this component of the clinical service revenue that
CGR includes as part of UR’s unique contribution to the Rochester economy, and
which qualifies as traded sector activity.
The remaining 63% represents routine medical procedures that could be satisfied by
other health care providers were these services not available from UR Medicine.
Employees and direct spending related to these types of procedures are considered
“local” and are not counted in the economic impact analysis of the traded sector.

Types of Economic Impacts
Direct Effects
Direct economic effects come from the actual expenditures of the University of
Rochester in the community—i.e., the institution is directly involved with the
transaction. Added to the direct expenditures is the local spending of students and
visitors to campus and/or the hospitals. Examples of direct expenditures include:




UR and its affiliates’ payroll expenditures for faculty, physicians, staff, residents, and
students;
UR and its affiliates’ purchases of goods and services from a variety of suppliers;
and

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 4



UR’s payment to a construction firm for a capital improvement project (e.g. a new
building).

Spillover Effects
Spillover effects result from the subsequent spending of the recipients of the direct
expenditures. In some studies this is subdivided for analysis into “indirect” and
“induced” impact. For example, a vendor company that supplies a product or service to
the University of Rochester uses the proceeds of that sale to make expenditures of its
own, typically for both materials and labor (an “indirect” impact). Similarly, employees
of the University of Rochester spend their wages, which become income for other
businesses in the region (an “induced” impact). These types of expenditures are
categorized as spillover. Examples of spillover impacts include:





The firm hired to construct a new building buys materials from local businesses.
The local businesses will, in turn, have income to hire workers. Those workers will
then spend money in the community. The spending of the businesses affected by
the construction, and also the spending of the employees of those businesses, is
considered spillover.
A resident or lab tech purchases dinner in a restaurant, and the restaurant then
uses the money to pay suppliers or staff.

Data Sources and Modeling
All data for the study were provided by UR. The data were gathered by CGR from the
various academic schools and affiliated organizations and compiled for analysis by
CGR. Where necessary, CGR consulted with external sources to obtain benchmarks for
analysis (e.g. the average hotel room rate was obtained by sampling local hotels). We
also consulted data from U.S. government bureaus of the Census, Economic Analysis
(BEA), and Labor Statistics (BLS); the New York State Department of Tax and Finance;
and a number of other sources.
CGR used IMPLAN, a regional input-output modeling system, to estimate the spillover
economic impacts. The IMPLAN database, created by MIG, Inc., is a widely accepted
model of economic activity. It consists of two major parts: 1) a national-level
technology matrix and 2) estimates of sectoral activity for final demand, final
payments, industry output and employment for each county in the U.S. along with
state and national totals. Data are updated annually. IMPLAN estimates the direct,
indirect and induced impacts of economic change through the use of multipliers, and
estimates the impact of an increase in demand in a particular sector on 536 different
industries/sectors in the economy.

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Our Findings
Economic Impact
CGR explores both the traded sector economic impact and also reports a broader look
at the role UR plays in the economy. The University of Rochester and its affiliates
continue to expand their economic impact within New York State.
In 2017, both the local and traded sectors were responsible for sustaining over 59,000
jobs in the NYS economy. This is up from an estimated 54,000 jobs in 2015.
Table 3 – Economic Impact of the University of Rochester and Affiliates, 2017
(thousands of FTE jobs)
Traded Sector
Area of Business Activity

Local & Traded Sectors

Direct

Spillover

Total

Direct

Spillover

Total

Employment Impact
Purchases Impact
Capital Investments Impact
Student Spending Impact
Visitor Activity Impact

16.6
1.0
2.3
0.5
0.1

16.8
0.5
1.2
0.2
0.0

33.4
1.5
3.5
0.7
0.1

26.9
1.6
2.3
0.5
0.1

25.9
0.9
1.2
0.2
0.0

52.8
2.6
3.5
0.7
0.1

Total

20.4

18.8

39.2

31.4

28.3

59.7

Totals may not sum due to rounding

When assessing impact using labor income as the measure, UR and its affiliates are
responsible for $3.5 billion in income in New York State. The total impact of the traded
sector in NYS is $2.3 billion in 2017.
Table 4 – Labor Income Impact of the University of Rochester and Affiliates, 2017
(millions of dollars)
Traded Sector
Area of Business Activity

Local & Traded Sectors

Direct

Spillover

Total

Direct

Spillover

Total

Employment Impact
Purchases Impact
Capital Investments Impact
Student Spending Impact
Visitor Activity Impact

$1,225.7
$55.8
$126.4
$19.5
$1.4

$820.5
$23.5
$57.5
$11.3
$0.9

$2,046.2
$79.3
$183.9
$30.8
$2.2

$1,896.2
$91.0
$126.4
$19.5
$1.4

$1,265.5
$41.2
$57.5
$11.3
$0.9

$3,161.7
$132.2
$183.9
$30.8
$2.2

Total

$1,428.8

$913.7

$2,342.5

$2,134.5

$1,376.4

$3,510.9

Totals may not sum due to rounding

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 6

Employment Impact
The largest impact is generated by the direct employment of workers at a wide range
of skill levels at UR and UR Medicine Affiliates. The table below provides the employee
count as of December 31, 2017. This includes full-time, part-time and time as reported
(TAR) individuals and is not a full-time equivalent number. The table does not include
graduate or undergraduate students as their impact is featured in a latter section.
Table 5 – UR and Affiliates Employee Counts

University of Rochester
Highland Hospital
FF Thompson
UR Medicine HomeCare/VNS
The Highlands*
Noyes Health**
Jones Memorial Hospital**
NextCorps***
Total

2015

2017

Change

21,936
2,686
1,513
742
699
N/A
N/A

23,877
2,819
1,615
728
704
561
498

9%
5%
7%
-2%
1%
N/A
N/A

14

13

-7%

27,590

30,815

12%

*Includes Highlands at Brighton, Highlands at Pittsford, and Highlands Living Center
**Noyes Health and Jones Memorial Hospital were not UR Affiliates in 2015.
***Formerly High Tech Rochester. Includes Excell Partners, Inc.

UR and its affiliates expanded their overall headcount by
about 3,200 workers, or 12% from 2015 levels. The University
of Rochester has consistently increased its employment
footprint. Collectively, UR and UR Medicine employ 9,000
more people than a decade ago.

UR EMPLOYS 9,000
MORE PEOPLE
THAN A DECADE
AGO.

UR Employment (Headcount) by Year

35,000
30,000
6,938

25,000
5,304
20,000
15,000

3,796
8,558

7,486

11,569

10,000
5,000

10,482

11,512

12,308

2007

2012

2017

0

UR

Strong

UR Medicine Affiliates

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 7

This growth is due to both organic expansion and acquisition through adding UR
Medicine affiliates. The University of Rochester’s River Campus employs 1,800 more
people than a decade ago, a 2% average annual increase. Strong Memorial Hospital
increased its employment by 5% annually over the same period, adding over 4,000
jobs. UR Medicine Affiliates posted an 8% increase annually, expanding their
employment by 3,100 jobs since 2007.
Growth from 2015 was also significant. All told, UR employs about 27,000 full-time
equivalents directly. UR and all the affiliates increased by 3,000 from 2015 levels, a
13% change. This rapid growth rate is due in part to the addition of Noyes Health and
Jones Memorial Hospital as UR Affiliates.
Table 6 – UR and Affiliates FTE Counts

NextCorps***

2015
19,351
2,174
1,208
617
470
N/A
N/A
12

2017
21,182
2,314
1,489
622
485
438
362
13

Change
9%
6%
23%
1%
3%
N/A
N/A
8%

Total

23,832

26,905

13%

University of Rochester
Highland Hospital
FF Thompson
UR Medicine HomeCare/VNS
The Highlands*
Noyes Health**
Jones Memorial Hospital**

*Includes Highlands at Brighton, Highlands at Pittsford, and Highlands Living Center
**Noyes Health and Jones Memorial Hospital were not UR Affiliates in 2015
***Formerly High Tech Rochester. Includes Excell Partners, Inc.

In estimating the economic impact of UR, CGR only includes the wages of those
employees with zip codes in New York State. However, it is clear that an employee
with a permanent address outside NYS may rent an apartment as well as buy groceries
and gas in NYS from time to time. Due to the case-by-case nature of these situations,
CGR chose to only include those wages of employees with a zip code in New York
State.
CGR divided employment figures into the traded and local sectors. As explained in our
approach, we measured the impact of each and report the traded sector and the
combined local and traded impacts for a total.

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UR and Affiliates Employment Impact, Jobs
60,000
50,000
40,000

25,900

30,000
16,800
20,000
10,000

26,900
16,600

0
Local & Traded
Sectors
Direct

Traded Sector
Spillover

Adding the spillover impact brings the total economic impact to about 33,400 jobs in
New York State for the traded sector. If both the local and traded sector combined are
considered, more than 52,200 jobs (direct and spillover) in New York State are due to
UR and its affiliates.
Individuals, either directly employed by the University or indirectly impacted through
the spending of the University or its employees, earn an estimated $3.2 billion dollars.
These payroll dollars are the lifeblood of the local economy.
UR and Affiliates Employment Impact, Labor Income (billions of dollars)
$3.5
$3.0
$2.5

$1.3

$2.0

$0.8

$1.5
$1.0

$1.9
$1.2

$0.5
$0.0
Local & Traded
Sectors
Direct

Traded Sector
Spillover

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 9

During 2017, UR paid wages of about $1.9 billion to
employees living in New York State. The largest
component of UR’s economic impact in the NYS economy
UR PAID ABOUT $1.9
is based on the wages it pays to its employees and the
BILLION IN WAGES TO
subsequent buying power that generates for them. Not
EMPLOYEES IN 2017.
only does UR directly employ about 27,000 full-time
equivalent workers, but the spending by these employees spurs an additional 26,000
jobs in NYS. When adjusted to account only for traded sector impact, the direct
employment figure is still significant (17,000) and the spending of those employees
spurs on an additional 17,000 jobs in the NYS economy.
Table 7 – Employment Impact of UR and Affiliates, 2017

Local & Traded Sectors Combined
Employment (thousands of jobs)
Labor Income (billions of dollars)
Traded Sector Only
Employment (thousands of jobs)
Labor Income (billions of dollars)

Direct

Spillover

Total

26.9
$1.9

25.9
$1.3

52.8
$3.2

16.6

16.8

33.4

$1.2

$0.8

$2.0

UR Remains One of the Top Employers in NYS
With nearly 31,000 employees (27,000 FTE), UR is the largest private employer in
Upstate New York. CGR has updated its list of New York State’s top private employers
for this study to put UR’s employment in a statewide context. Since private
employment figures are not public information, CGR has used various business
journals, market research reports, and self-reported numbers to provide the most
accurate data. With each new publication of this list, we have grown more confident
that we are capturing the right firms and institutions. However, we remain cautiously
aware that with no publicly available statewide source to independently verify our
findings, there is a possibility that the list is incomplete.
The following are what CGR believes to be the largest private sector employers in New
York State based on their full-time equivalent employment for the year ended 2017.
We have used full-time equivalents to provide a better comparison of employment
impact.

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 10

Table 8 – Top 20 Private Employers in NYS in 2017
(Full-time equivalent employees)
Rank Company Name
NYS Employment
Northwell Health
54,000
1
Montefiore Health System
32,000
2
Mount Sinai Health System*
29,000
3
Walmart*
28,000
4
NYU/NYU Langone Medical Center
27,000
5
UR & Affiliates
27,000
5
Verizon NY Inc.**
27,000
5
JP Morgan Chase**
25,000
8
Citigroup Inc.**
25,000
8
New York Presbyterian
20,000
10
McDonalds**
18,000
11
Wegmans Food Markets*
17,000
12
Macy's*
17,000
12
Cornell University/Weill Medical College
17,000
12
Rochester
Regional
Health
System*
16,000
15
Consolidated Edison
15,000
16
Bank of America**
14,000
17
Home Depot**
14,000
17
Memorial Sloan-Kettering Cancer Center*
13,000
19
Morgan
Stanley**
13,000
19
*Headcount reported; adjusted by CGR for likely part-time workers.
**Not published; estimate only.

With about 27,000 FTE employees, the University of Rochester is in a three way tie for
the fifth largest private employer in New York State. Across the board, healthcare and
higher education remain the dominant players in New York State’s economy. The
majority of the largest employers are headquartered downstate, in New York City and
on Long Island, though a few are located Upstate.

Purchasing Impact
UR and its affiliates purchased goods and services totaling nearly $1 billion in 2017. Of
this total, $182 million or 18% was spent in New York State3. These purchasing
“leakages” occur across all parts of UR but is especially noticeable within the hospitals.
This leak outside the NYS economy is due to the dearth of medical equipment and
pharmaceutical manufacturers located within the state. CGR excluded $26.1 million of
employee reimbursements. Undoubtedly some of it was spent at NYS vendors but
what amount is unknown.
UR has used its substantial purchasing power to influence supplier decisions which
benefits the local economy. For example, Medline is a direct supplier to hospitals,
3

Location of spending based on zip code of the vendor. May understate total impact to NYS as spending may flow to
headquarters out of state but distribution center may be located in New York State.

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 11

nursing homes, medical practice groups and retailers of surgical masks and gowns,
scrubs, laboratory equipment, wound dressings, wheelchairs and other durable
medical equipment and other medical supplies. A five-year, $250 million contract to
become URMC’s prime vendor spurred the relocation of a 260,000-square-foot
distribution center from Pennsylvania to Brockport, NY.
UR also leverages its research strength and purchasing power for public benefit. UR,
through its Center for Energy and Environment, has applied for a $1 million grant from
the New York State Energy Research and Development Authority (NYSERDA) to install
a solar array and energy storage system on a new 34,000 sq. ft. building, which would
establish a net-zero building on the UR campus.
This first of its kind project in New York State will serve as a test case for a solar panelbattery coupled system that integrates grid scale energy storage, allowing the UR to
see whether a system like this can perform in a northeastern U.S. climate setting. With
Governor Cuomo’s target to supply 50% of the state’s electricity from renewable
sources by 2030, contributing to the goal to reduce greenhouse emissions 40% below
1990 levels by 2030, the results of this test case could be transformative, leading to the
wide-scale adoption of carbon-free solar energy in New York State while maintaining
grid stability.
Moreover, this project is aligned with the Rochester-Monroe Anti-Poverty Initiative
and the City of Rochester. ENEROC is the first startup launched by the Market Driven
Community Corporation (MDCC), an independent non-profit focused on the
development of worker-owned businesses within the City of Rochester. If awarded
the grant, ENEROC will be partnering with SunCommon for the installation.
The map below illustrates UR’s purchasing footprint within New York State. Those
counties shown with darker shading sourced more goods and services to UR and its
affiliates than lighter shaded ones. UR purchased goods and services from all but seven
of the counties in NYS. CGR estimates that the UR’s purchases sustains approximately
2,600 jobs in the state.

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UR and Affiliates Purchasing Footprint, 2017

X

Over $13m

X

$3-$13m

X

$1.5-$3m

X

$0.3-$1.5m

X

Under $0.3m

X

N/A

Table 9 – Purchasing Impact of UR and Affiliates, 2017

Local & Traded Sectors Combined
Employment (thousands of jobs)
Labor Income (millions of dollars)
Traded Sector Only
Employment (thousands of jobs)
Labor Income (millions of dollars)

Direct

Spillover

Total

1.6
$91.0

0.9
$41.2

2.6
$132.2

1.0

0.5

1.5

$55.8

$23.5

$79.3

Capital Construction Impact
UR has made considerable capital investments in the last decade, totaling over 2.7
billion dollars, adjusted for inflation. There is considerable variation in the year over
year capital investment numbers. Given this variable nature of capital expenditures,
CGR uses an annual average over five years to estimate the economic impact of
capital investments. During the past five fiscal years (FY2013 – FY2017), UR and its

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affiliates made over $1.4 billion dollars in capital project expenditures. This averages to
about $290 million in capital investments per year.
UR and Affiliates Capital Investments
(millions of 2017 dollars)
$340
$320

$327.9

5 Year Average: $290m

$300
$280
$260

$286.1

$292.4
$271.7

$262.3

$240
$220
$200
FY13

FY14

FY15

FY16

FY17

Using the 5 year average, CGR estimates UR’s capital investments support around
3,500 jobs and add over $180 million of labor income to the New York State economy.
Table 10 – Capital Investments Impact of UR and Affiliates, 2017
Direct

Spillover

Total

Employment (thousands of jobs)

2.3

1.2

3.5

Labor Income (millions of dollars)

$126.4

$57.5

$183.9

Capital Project Retrospective
UR has carried out a number of significant capital projects in recent history. These
investments indicate UR’s commitment to the City of Rochester and the overall region.
The following section highlights some of the capital projects completed recently that
resulted directly or indirectly as a result of UR. They are listed in chronological order.

Saunders Research Building
The Saunders Research Building was completed in 2011 with $50 million in support
from New York State. It was named in recognition of E. Philip Saunders, who made a
$10 million gift to UR’s Clinical & Translational Science Institute (CTSI).

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 14

As a result of building the Saunders Research Building, UR attracts funds from the
National Institutes of Health’s (NIH) Clinical and Translational Science Awards (CTSA).
The CTSA was established by the NIH in 2006 to reduce the time it takes for drugs,
medical devices, or therapeutic interventions to get to patients and populations in
need. The program acts in a supporting role for biomedical researchers, by providing
infrastructure, training, and resources that make it easier for biomedical scientists to
move their research forward.
Since its inception in 2006, the CTSI has been continually funded by the CTSA
program, which is now administered by the National Center for Advancing
Translational Sciences. UR’s CTSI has received nearly $105 million in NIH funding and
has, in turn, supported 98 trainees and funded 198 projects for a total of nearly $15
million at the University. Researchers and trainees supported by the CTSI have gone
on to secure $102 million in external funding.
UR’s CTSI today coordinates a network of over 50 institutions across the country. The
network aims to help researchers turn scientific discoveries into health benefits faster.

Brooks Landing
Development at Brooks Landing is fundamentally changing the face of Rochester's
southwest side. UR, the City of Rochester, neighborhood groups and private
developers all partnered in the development of Brooks Landing – a waterfront
development between Brooks Avenue and Genesee Street. Ground was broken in
2013 on the latest addition to the Brooks Landing Revitalization Project, The Flats at
Brooks Crossing.
Brooks Crossing, an $18.7 million project, houses 170 UR upperclassmen, a boathouse
and soon a restaurant. Brooks Crossing was projected to bring $9.9 million to the
Brooks Landing community as new residents patronize local services and restaurants.
The City of Rochester also contributed to the project in the form of $6 million in area
public improvements.

College Town
UR partnered with the City of Rochester, Fairmont Properties, Gilbane Development
and Mt. Hope neighborhood leaders to develop a comprehensive plan for a College
Town on 14 acres of university-owned property along Mt. Hope Avenue. Like Brooks
Crossing the University is the anchor tenant and committed to leasing 50,000 square
feet in office space and relocating the University’s Bookstore. The project created a
vibrant community hub, which serves and serve not only the Mt. Hope and university
communities, but the entire city.
College Town is a $100 million development project in part financed with local, state
and federal grants and loans. The project includes street-level retail shops, office

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 15

space, parking, rental residential space and a hotel. The City of Rochester invested $17
million in improvements to the main intersection flanking the College Town
development.

I-390 Improvements
A multi-phase plan to improve access to UR and the surrounding area via the I-390
interchange began in 2012-13 and wrapped up in 2015. This $90 million project
supported an estimated 850 construction jobs (indirect and direct) and $42 million in
labor income. In total, the project supports and accommodates increased traffic from
new developments within 2 square miles of the project site. The project is expected to
ease traffic, increase safety and provide future economic development opportunities
in the community.

Golisano Children’s Hospital Phase I
In the summer of 2015, after more than three years of planning and 30 months of
construction, the $145 million Phase I of new Golisano Children’s Hospital was
completed. This was the largest capital investment in UR history. The new Golisano
Children’s Hospital tower provides infants, children and families with more space and
access to improved care, including 52 private patient rooms and 68 beds in the
Neonatal Intensive Care Unit. Currently, Golisano Children’s Hospital performs over
21,000 surgeries a year—for patients in the 17-county Finger Lakes region and beyond.

Wegmans Hall/Goergen Institute for Data Science
Data science is hailed as the next tech frontier and was the centerpiece of the
University of Rochester's 2013-2018 strategic plan. The University committed $100
million towards the field of data science. Since then, the Goergen Institute for Data
Science (GIDS) has been attracting more researchers and funding.
Completed in 2017, Wegmans Hall is a new state-of-the-art 58,000-square-foot facility
that is home to GIDS and the New York State Center of Excellence in Data Science.
The Wegmans Family Charitable Foundation has donated $20 million for the
construction of a building. Governor Cuomo and New York State have committed
$22.5M to support the data science at the University, which includes $15 million
towards the construction of Wegmans Hall and $7.5 million for the creation of the
Rochester Data Science Consortium, a partnership between the UR and Harris
Corporation—two of the largest employers in the Finger Lakes region. Projects are
underway with Harris Corporation and, in 2018, the Consortium will be adding
Wegmans and other corporate partners as members. Additionally, the University is
hiring for several open positions at the Consortium and is creating a new paid
internship program for 10 Data Science students who will work on projects for the
Consortium throughout the year. The Consortium will create up to 184 new direct
jobs and is expected to leverage more than $285 million in federal research funds and
private investment.

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UR Medicine’s Imaging & Autism Care Center
A 90,000-square-foot, three-story imaging sciences building on East River Road was
completed in 2017. The new site provides the region’s first outpatient interventional
radiology clinic and the region’s first stand-alone clinic to integrate care of autism with
pediatric neuromedicine and child and adolescent psychiatry services.
The first two floors hold the new Imaging Center, which combines private patient
spaces with advanced technology for diagnostics and treatment. The third floor
houses the new William and Mildred Levine Autism Clinic, supported by a $1 million
gift from the William and Mildred Levine Foundation. The autism clinic co-locates
specialists in autism, child and adolescent psychiatry and neuromedicine services to
offer multidisciplinary care to children and teens. This project totaled $28 million, and
the building was completed in early 2017.

NextCorps
NextCorps, formerly High Tech Rochester (HTR), is a UR affiliate and the region’s only
state- and federally-designated business incubator. It is a place where entrepreneurs,
university researchers and inventors get together and seed new business ideas.
In late 2014, HTR announced that it was leaving its current home in West Henrietta
and moving to the 6th floor of the Sibley Building. It is the cornerstone of the City of
Rochester’s newly designated Downtown Innovation Zone. The 68,000-square foot
6th floor was to be transformed into co-working space, private offices and state-ofthe-art labs (including wet labs for biotech innovation), conference rooms and an
auditorium for programs, workshops and community events. Since announcing plans
to move from West Henrietta to downtown Rochester, more than 15 companies
approached them about moving into the incubator space.
This $24 million project was supported with $10 million from the State of New York,
$2.5 million from the federal Economic Development Administration, $3 million in
private philanthropic donations and is a priority project of the Finger Lakes Regional
Economic Development Council (FLREDC). The opening of the facility marks the
completion of the $16 million phase 1 of the project.
In fall of 2014, CGR assessed the economic impact of the business accelerator. If these
expectations are correct, employment in business accelerator startups plus “spillover”
employment will total around 2,000 FTEs by year five. Roughly half of these are
directly employed by the startups; the other half is the result of spillover effects. Labor
income would grow from just under $7 million in the first year to nearly $90 million in
year five. Construction on the sixth floor of historic Sibley Square was completed in
early 2018.
Since opening their doors, UR/NextCorps was awarded $10M through the Finger Lakes'
Upstate Revitalization Initiative award to host Luminate NY, the world’s largest optics,

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photonics and imaging technologies business/startup competition. The competition
received interest from more than 100 applicants from around the world during this
first round, including teams from Canada, Switzerland, Ireland, Germany, Scotland,
India, China, Russia, Qatar, Lebanon, Israel and the United States. 10 finalists were
selected and each will receive an initial investment of $100,000 when they begin the
accelerator program.
On June 28th, 2018, the inaugural cohort of Luminate will participate in a Demo Day
event in the Big Tent of the Xerox Rochester International Jazz Festival. All 10 finalist
companies will be pitching their optics, photonics, and imaging startups, and one
team will be awarded $1 million in follow-on funding from the Empire State
Development’s Finger Lakes Forward initiative. An additional $1 million is also available
to be awarded to other finalist companies.

Golisano Children’s Hospital Phase II
Phase II construction of the new Golisano Children’s Hospital building commenced
shortly after the building’s dedication in May 2015. This phase will total an additional
$45 million capital investment. The new areas, which will be located on the fourth
and sixth floors, include:







Six new operating rooms in the William and Mildred Levine Pediatric Surgical Suite,
including the pediatric cardiac operating room;
The Clay E. and Rita M. Buzzard Pediatric Cardiac Cath Lab Suite, which will allow
physicians to insert cardiac catheters in an environment designed specifically for
the procedure;
23 new private pre-op and post-op recovery rooms;
A gastroenterology surgical procedure suite; and
Relocation of the current 12 ICU and 10 general care pediatric beds to the new
tower, and an addition of six new pediatric ICU beds to accommodate rising
demand.

Construction on this phase of the Golisano Children’s Hospital is ongoing at the time
of this report.

Future Capital Investments
Undoubtedly UR will continue to make additional capital investments. Sites like the
CTSI in the Saunders Research Building and the LLE are at capacity and would need to
expand to provide additional space to researchers.
Other future projects include the new Sloan Theatre, Hutchison Hall’s annex, the
development of 1.5 acres of land across from the Eastman School of Music, currently

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 18

being used as a parking lot. UR purchased this land with the intent to build a mixed
use development. UR Medicine HomeCare (formerly VNS) is exploring relocating its
headquarters to downtown Rochester, which will require capital investments.
Future investment will also occur at UR Medicine facilities. UR is planning on
expanding the Emergency Department at Strong Memorial Hospital along with other
improvements. These capital investments will support construction and related jobs
locally and improve the quality of services provided in the region.

Student Spending Impact
Students generally do not have significant buying power during their on-campus
experiences. However, due to the sheer volume of students they do contribute to the
economic activity of New York State in a variety of ways. During the 2017 spring
semester, UR:




Enrolled 9,307 full-time undergraduate and graduate students; and
Provided housing to 5,181 undergraduate and graduate students.

Many students continue classes during the summer. During the summer of 2017, UR:




Enrolled 1,049 full-time undergraduate and graduate students; and
Provided housing to 1,392 undergraduate and graduate students.

During the 2017 fall semester, UR:




Enrolled 9,766 full-time undergraduate and graduate students;
Provided housing to 5,448 undergraduate and graduate students.

During 2017, UR provided over 2.9 million meals.
Based on these numbers, it is reasonable to assume that during the 2017 calendar year
students either:




Ate off-campus on a semi-regular basis—spending their money locally to eat in
restaurants or shopping at grocery stores; and/or
Lived off-campus, investing their living expenses in the Rochester economy.

Using BLS Consumer Expenditure Survey data, CGR estimates that a student living on
campus spends almost $900 per year. Students living off campus spend about $1,900.
The following table summarizes the estimates by category.

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 19

Table 11 – Student Spending Estimates
Category

On Campus

Off Campus

Housing
Utilities
Groceries (food at home)
Dining Out
Entertainment
Transportation
Clothing
Alcohol
Reading
Phone / Cable

$0
$0
$0
$0
$129
$508
$117
$22
$4
$72

$489
$100
$227
$214
$129
$508
$117
$22
$4
$72

$35

$35

$888

$1,918

Personal Care Products
Total Student Spending

CGR estimates that spending by students totaled over $99 million in 2017. This
spending supports in total roughly 750 jobs in the New York State economy as
summarized in the table below.
Table 12 – Student Spending Impact

Employment (hundreds of jobs)
Labor Income (millions of dollars)

Direct

Spillover

Total

5.0

2.5

7.5

$19.5

$11.3

$30.8

The total amount of UR student spending ($99 million) increased by $4.5 million from
2015. The number of jobs resulting from this spending has likewise increased by 6%.
The estimated labor income increased by 4% from the previous study. This was due to
increased enrollment.
Table 13 – Student Spending Impact Comparison

Employment (hundreds of jobs)
Labor Income (millions of dollars)

2015

2017

Change

7.1

7.5

6%

$29.5

$30.8

4%

Visitor Activity Impact
Another way UR is an economic engine involves the attraction of visitors who spend
money. The University of Rochester hosts visitors throughout the year for events such
as Meliora weekend, commencement, concerts, recitals, athletic events, and

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 20

admissions visits. Visitors to these events are a vital source of economic impact
because they bring new dollars to the New York State economy. These visitors include
alumni; prospective students and their families; family and friends of current students;
visiting faculty that attend conferences or use research equipment; family and friends
of Strong Memorial Hospital patients; musicians; athletic opponents and their fans;
and UR fans and families of student athletes.
About 430,000 people attended a UR event in 2017. An estimated 40,000 people were
out of town visitors. They lodged more than 35,000
nights in local hotels (down by 10% from the 2015
study).
DURING 2017, CGR
ESTIMATES VISITORS TO
UR SPENT ABOUT $8
MILLION ON FOOD,
LODGING AND GASOLINE.

During 2017, CGR estimates visitors to UR spent about
$8 million on food, lodging and gasoline. CGR
estimates that the influx of spending generated by
visitors resulted in approximately 70 jobs and roughly
$2.2 million of labor income to the NYS economy. This
is slightly lower than the 100 jobs and $3.1 million in labor income estimated in 2015
study due largely to a decrease in the number of visitors and a change in the price of
gasoline.
Table 14 – Visitor Activity Impacts

Employment
Labor Income (millions of dollars)

Direct

Spillover

Total

50

20

70

$1.4

$0.9

$2.2

Economic Impact Summary
UR is a major contributor to the Upstate economy. It directly employs about 27,000
FTEs and through spillover spending effects supports about 60,000 jobs.
Table 15 –Economic Impact of the University of Rochester and Affiliates, 2017
(thousands of FTE jobs)
Traded Sector
Area of Business Activity

Local & Traded Sectors

Direct

Spillover

Total

Direct

Spillover

Total

Employment Impact
Purchases Impact
Capital Investments Impact
Student Spending Impact
Visitor Activity Impact

16.6
1.0
2.3
0.5
0.1

16.8
0.5
1.2
0.2
0.0

33.4
1.5
3.5
0.7
0.1

26.9
1.6
2.3
0.5
0.1

25.9
0.9
1.2
0.2
0.0

52.8
2.6
3.5
0.7
0.1

Total

20.4

18.8

39.2

31.4

28.3

59.7

Totals may not sum due to rounding

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 21

Fiscal Impact
In addition to being a job engine, the University of Rochester and its affiliates are a
significant source of revenue to state and local governments. CGR estimates this fiscal
impact of the UR’s traded sector to be just under $140 million. This includes all sales
tax, personal income tax and property taxes to state and local governments. When this
is expanded to include both the local and traded sector, the total increases to $207
million. The total impact includes the property taxes paid on leased locations. The
following tables break out these totals by the type of tax revenue:
Table 16 – UR Traded Sector Fiscal Impact
(Millions of dollars)
Direct

Spillover

Total

NYS and Local Sales Tax
NYS Personal Income Tax
Local Property Tax paid by UR

$37.3
$56.8
$1.1

$23.8
$19.9
N/A

$61.1
$76.8
$1.1

Total

$95.1

$43.8

$138.9

Table 17 – UR Local and Traded Sector Fiscal Impact
(Millions of dollars)

NYS and Local Sales Tax
NYS Personal Income Tax
Local Property Tax paid by UR
Total

Direct

Spillover

Total

$55.7
$79.9
$5.6

$35.9
$30.1
N/A

$91.6
$109.9
$5.6

$141.1

$66.0

$207.1

UR Research Enterprise
Not only does the University of Rochester provide employment and paychecks for
27,000 workers, but it also contributes to the economy by attracting dollars into the
region through research.

External Research Funding
UR attracted over $342 million in external funding (federal and non-federal) in 2017.
Over the last five years, external funding has totaled more than $1.7 billion. Awards to
the University of Rochester averaged $361 million per year from FY2013 to FY2017,
adjusted for inflation.

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 22

External Research Funding
(Millions of dollars)
$600
$500
$400
$300
$200
$100
$0
FY
FY
FY
2008 2009 2010

FY
2011

FY
2012

FY
2013

FY
2014

FY
2015

FY
2016

FY
2017

Source: UR Office of Research and Project Administration

Using the $342 million in external research funding and industry averages, CGR
estimates about 2,800 full time equivalents are engaged in sponsored research
projects. This number does not include UR employees who – while not directly
engaged in research projects – play an important role in supporting the institution’s
scientific enterprise (e.g. grants administration, human research subjects protection, IT
and administrative support, etc.). Their activity generates an additional 1,400 jobs in
the economy. Total payroll for all of these jobs total an estimated $275 million and
generate an estimated $18 million in income and sales tax revenue.
Table 18 – UR Research Enterprise Impact Summary

Employment
Labor Income (millions)
NYS Personal Income Tax (millions)
Sales Tax (millions)

Direct

Spillover

Total

2,800
$196.2
$7.9

1,400
$78.7
$2.9

4,200
$274.9
$10.8

$5.1

$2.1

$7.2

Patents, Invention Disclosures and Start-ups
UR research has generated patented intellectual property and in some cases
commercialization through start-ups.

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 23

Patents Issued
UR had 73 patents issued in 2017. This is on par with the previous study which was the
high water mark. UR has generally been increasing the number of patents issued per
year since 2009.
Patents Issued to UR
80
70
60
50
40
30
20
10
0

United States

Foreign

Invention Disclosures
Over the past decade, UR has averaged 137 disclosures per year. In 2017, UR had 106
invention disclosures. This is down slightly from the last study (150).

Start-up Companies
From FY 2007 to FY 2017, UR has been responsible for starting up 33 local companies.
Twenty-five of them are still in operation, which is a 76% survival rate. This is well
above the national average survival rate of 47%, according to the latest U.S. Census
data of similarly aged companies.

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 24

Start-up Company Survival Rates
80%
70%
60%
50%
40%

UR

30%
20%

National
Average

10%
0%

UR Laboratory for Laser Energetics (LLE)
Another unique research asset in the region is UR’s Laboratory for Laser Energetics
(LLE). The Laboratory was established in 1970 as a center for the investigation of the
interaction of intense radiation with matter. One
of the ultimate objectives of the LLE is to
demonstrate the feasibility of Inertial
EARNING FROM LLE EMPLOYEES
Confinement Fusion as an inexhaustible energy
GENERATE ALMOST $2.5M IN
source.
TAXES TO STATE AND LOCAL
GOVERNMENTS.

The LLE is home to the OMEGA and OMEGA EP
lasers, which are the largest and most capable
lasers at any academic institution in the U.S. or worldwide. Consequently the LLE
attracts outside researchers and visitors. In total about 450 people from outside of the
region visited the LLE to do research or participate in a conference in 2017. Over 2,100
“shots” occur per year, with a majority for outside scientists.
As a result of federal and state support, the Laboratory for Laser Energetics (LLE) has
attracted more than $2.3 billion to the state to support cutting-edge research and the
region’s optics, photonics and imaging industry cumulatively after adjusting for
inflation.
The Laboratory’s funding recently was brought into question. Along with it came the
questions of what does the UR Laboratory for Laser Energetics mean to the economy?
What would it mean if it closed?
The LLE directly employs about 350 full-time equivalent workers. These workers earn
roughly $34 million and generate almost $2.5 million in revenue to state and local
governments in the form of income and sales tax.

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The LLE purchases over $13 million of goods and services from vendors in 2017,
including $5 million from vendors in New York State. Since 2015 alone, the LLE has
made more than $15.6 million in local purchases from over 50 companies across New
York State, including Optimax, Sydor Optics, Sydor Technologies, Connors-Haas, East
Side Machine Inc., QED Optics, Nesco Resources, Advanced Glass Industries, UltraTool
Inc., Khiram Prototypes Works Inc., Boulter, Postler & Jaeckle and Harris Corp.
The spending of the LLE and its employees contributes to an additional 500 jobs for a
total impact of about 850 jobs. Thus, if the LLE were to close, approximately 850 jobs
in NYS would be impacted. Over $56 million of income to workers and $3.7 million in
revenue to governments would likewise disappear.
Table 19 – UR Laboratory for Laser Energetics Impact Summary
Direct

Spillover

Total

Employment
Labor Income (millions)
NYS Personal Income Tax (millions)

350
$34.3
$1.5

500
$22.3
$0.7

850
$56.6
$2.2

Sales Tax (millions)

$0.9

$0.6

$1.5

UR Medicine
UR Medicine Hospitals
UR Medicine continues to expand its
economic footprint across the state. St. James
Hospital, located in Hornell New York, is the
sixth to join UR Medicine's network of
inpatient hospitals, including Strong Memorial
and Highland in Rochester, Jones Memorial in
Wellsville, Noyes Memorial in Dansville, and F.
F. Thompson in Canandaigua.
St. James hospital is not included in this
economic impact assessment as it became an
affiliate in 2018. However it does employ
about 300 people.
UR Medicine employed about 21,200 FTEs
with a payroll of roughly $1.5 billion in 2017.
When looking at UR Medicine’s traded sector,
it directly employs 8,400 FTEs with a payroll of
$0.8 billion. Factoring in the

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impact of employee spending and purchasing activities, the economic impact of UR
Medicine totals 34,800 jobs and $2.1 billion in payroll. Its traded sector impact totals
15,500 jobs and $1.2 billion in payroll.
UR Medicine’s impact will continue to grow as Mary Imogene Bassett Hospital in
Cooperstown, NY and Auburn Community Hospital in Auburn, NY further their
relationships with UR Medicine.

Highland Hospital
On April 10, 1889, Hahnnemann Homeopathic Hospital opened its doors. It consisted
of a house with 6 beds and a barn. The hospital expanded through the generosity of
Sibley, Eastman and other donors. In 1921, its name was changed to Highland
Hospital.
Highland is a regional leader in specialties such as bariatric surgery, total joint
replacement, geriatric care, gynecologic oncology, prostate cancer treatment,
women's health and maternity services.
In 2017 Highland Hospital directly employed 2,300 FTEs. Factoring in the impact of
employee spending, the total number of jobs as a result of employment at Highland
Hospital increases to 3,800 jobs.
Highland Hospital has undergone upgrades to ensure it provides the highest quality of
care. Over the last few years Highland has averaged about $20 million in capital
improvements annually. This investment spending translates into a total impact of
200 jobs.
The hospital purchases over $6 million in goods and services from NYS suppliers,
which translates into 100 additional jobs for a total jobs impact of 4,100. The
following tables summarize these job impacts:
Table 20 – Highland Hospital’s Total Economic Impact
FTE Jobs

Labor Income (millions)

3,800

$177.2

Capital Investments Impact

200

$12.8

Purchases Impact

100

$4.5

4,100

$194.5

Employment Impact

Total

Highland Hospital’s economic activity brings about $194.5 million of labor income into
New York State. This results in an estimated $7.2 million in personal income tax and
$5.1 million in sales tax.

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 27

Table 21 – Highland Hospital Economic Impact Summary

Employment
Labor Income (millions)
NYS Personal Income Tax (millions)

Direct

Spillover

Total

2,500
$118.2
$4.7

1,600
$76.3
$2.5

4,100
$194.5
$7.2

$3.1

$2.0

$5.1

Sales Tax (millions)

Conclusion
With nearly 31,000 employees (roughly 27,000 FTE) the University of Rochester (and
its affiliates) is the largest private employer in Upstate New York and ranked 5th across
the Empire State in terms of full-time equivalent employment. These employment
figures are growing. UR directly employs 9,000 more people than a decade ago.
Additional jobs come as a result of UR purchases of goods and services from their
vendors, and their employees spending their paychecks. UR purchased $182 million of
goods and services from New York State based vendors. UR directly paid about $2.13
billion to its workforce in 2017. Major capital investments made by UR support
construction and related jobs in the economy. Over the last five years, UR has
averaged about $290 million annually in capital investment spending. UR students
also contribute as they annually spend an estimated $99 million in the economy.
Outside visitors to UR commencement, conferences, cultural, sports and other events
spent an estimated $8 million, supporting additional jobs in the economy.
All told, UR is responsible for sustaining a total of about 59,700 jobs in the NYS
economy, up by 5,000 jobs since 2015. The “traded sector,” the subset of jobs
resulting from spending from outside the region, also posted a 7% increase from 2015,
totaling about 36,600 jobs in 2017.
Table 22 - University of Rochester’s Employment Impacts (thousands of jobs)
Traded Sector
Area of Business Activity

Local & Traded Sectors

Direct

Spillover

Total

Direct

Spillover

Total

Employment Impact
Purchases Impact
Capital Investments Impact
Student Spending Impact
Visitor Activity Impact

16.6
1.0
2.3
0.5
0.1

16.8
0.5
1.2
0.2
0.0

33.4
1.5
3.5
0.7
0.1

26.9
1.6
2.3
0.5
0.1

25.9
0.9
1.2
0.2
0.0

52.8
2.6
3.5
0.7
0.1

Total

20.4

18.8

39.2

31.4

28.3

59.7

Totals may not sum due to rounding

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