Report shows Johns Hopkins’ key role in Maryland’s economy

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According to a recent report, the Johns Hopkins University and Johns Hopkins Health System generate about $40 billion in economic impact across Maryland.

The report, titled “Quantifying the Economic Footprint and Catalytic Role of Johns Hopkins University and Johns Hopkins Health System,” by Philadelphia-based Econsult Solutions Inc. was released on October 10. The report measures job creation, economic impact, research activity, community investments and the potential challenges that lie ahead.

Playing an outsized role

Dr. Anirban Basu, Chairman and CEO of Sage Policy Group and Distinguished Economist-in-Residence at Loyola University Maryland, said that the scale of Hopkins’ impact is especially large in Baltimore. “It’s so big that it supports both urban and suburban revitalization,” Basu said.

In the city of Baltimore alone, the institutions accounted for roughly $19.4 billion in economic activity, including direct operations, indirect effects and induced spending.

The institutions also support approximately 149,000 jobs statewide each year. This includes direct employment at Hopkins and additional jobs in related industries sustained through purchasing and household spending.

“One could debate that the Port of Baltimore is more important, but Hopkins, as the largest employer in Maryland, is the economic giant of East Baltimore and a key economic driver,” said Basu. He added that when the medical campus creates jobs it helps to rebuild the surrounding community and expands the local tax base.

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Basu notes that Hopkins has a disproportionate impact on engineering services, building maintenance and construction.

“That also creates a lot of jobs and there have been significant capital programs at the university campus and the medical campus. This means that they also have a disproportionate impact on the housing market since the workers need somewhere to live,” notes Basu, mentioning the “HopkinsLocal” initiative created a decade ago, which continues to have a positive impact on the state’s economy. The program prioritizes hiring Baltimore residents, purchasing from local and minority-owned businesses and investing in neighborhoods. “Since 2015, the university and health system have spent more than $1 billion with local businesses,” Basu said.

Research contributions and startups

Research also plays a big part in the state’s economy and it’s not lab work alone. Hopkins’ research activity contributes $10 billion statewide when accounting for wages, grants, lab purchases, facility investments and related spending.

And Johns Hopkins, like so many other universities, is commercializing. Johns Hopkins Technology Ventures has helped launch 130 startups through fiscal year 2024, raising $4.4 billion in venture capital — 43% of which has remained in Baltimore.

Fiscal and community benefits

Between the two entities, the university and health system generated $83.5 million in tax revenue in Baltimore and $525 million in Maryland including income, sales, business, property, and lodging taxes.

They also provided $597 million in community benefits like free/reduced medical care, screenings, clinics and workforce development initiatives.

Challenges ahead

The report warns that recent federal funding cuts pose a threat to Hopkins’ role as an economic engine. The university reports a reduction exceeding $500 million in federal research funding during January-September, plus earlier announced USAID terminations near $800 million.

“In the most remote villages in India, students have aspirations of studying here. The name rises to the top when we talk about medicine. It’s not just a medical system, but a brand,” said Basu, noting that Johns Hopkins’ global reputation attracts people from around the world and plays a role in driving people to the region. “The legislature needs to understand the importance of supporting this institution,” he said.