The Economic Impact of Valley Children’s Healthcare
Introduction
Hospitals are most commonly discussed in terms of the services they provide, the number of patients they care for, or the number of communities they serve. That is the core mission of hospitals. However, the economic benefits of hospitals across a region also play a major role in community vitality. As anchor institutions, healthcare systems are often the largest employers in an area, and they draw in employees and patients from across a broad geography. Though the scale of these impacts is large, they are often not well understood.
This analysis adds better understanding of how Valley Children’s Healthcare contributes to the Central Valley economy in the form of jobs supported, economic activity generated, and taxes paid. Reference to Valley Children’s Healthcare in this report is inclusive of the hospital and its provider practices: Valley Children’s Primary Care and Specialty Care Group.
As background, Valley Children’s Healthcare plays the leading role in providing comprehensive pediatric healthcare and improving the health outcomes of children in the Central Valley. At the heart of the system is Valley Children’s Hospital. Established in 1952, the hospital has grown into one of the largest pediatric healthcare networks in the nation, providing specialized care to more than 1.3 million children across the Central Valley. The healthcare system serves as a critical safety net for a largely rural and oftentimes underserved population, ensuring top-tier care regardless of a family’s financial means. The 358-bed Valley Children’s Hospital – with more than 10,000 inpatient admissions and nearly 100,000 emergency room visits in 2024 – offers comprehensive medical and surgical services for patients from birth through young adulthood, including those with complex and rare conditions.
The hospital is renowned for its advanced neonatal and pediatric intensive care units. Its Level IV Neonatal Intensive Care Unit (NICU) is the highest-level referral center between the Bay Area and Los Angeles, equipped to handle the most critical neonatal cases. Additionally, Valley Children’s operates the region’s only American College of Surgeons (ACS)-verified Level II Pediatric Trauma Center, ensuring specialized care for young patients. Outside of the hospital, Valley Children’s broad network of specialty and primary care centers saw more than 280,000 patients in 2024.
Valley Children’s Hospital has garnered national acclaim for its commitment to pediatric healthcare excellence. For the ninth consecutive year, U.S. News and World Report recognized the hospital as one the nation’s Best Children’s Hospitals in its 2024-2025 rankings. In addition to its clinical accolades, Valley Children’s Hospital has been awarded the prestigious Magnet designation for nursing excellence by the American Nurses Credentialing Center, achieving this distinction a total of five times.