Hospital Jobs Program Provides Economic Opportunity for Baltimore Residents

An agreement by Maryland hospitals to create 375 jobs for Baltimore residents is a good example of how government and private businesses can work together to promote economic opportunity.

The Health Employment Program was conceived by the Johns Hopkins Health System, MedStar Health, the University of Maryland Medical System and OneBaltimore. The jobs will pay an average of $15 an hour and benefit families residing in areas hardest hit during the unrest following the death of Freddie Gray last April.

Lawmakers should support policies that build on this model, creating sustainable incentives for businesses that create jobs paying meaningful wages in communities that most need an economic boost. However, it is also important that companies receiving incentives are held accountable for actually creating the jobs that they promised.

The program will enable people who don’t have a four-year college degree to apply for entry-level positions and get the chance to gain new skills and move up over time.

Last week, this group of hospitals came to an agreement with a state regulatory board that requires participating hospitals to pay a share ($5 million) of the cost of the program and allows the rest of the funding to come from hospital rate increases ($10 million).

The anticipated cost per job is approximately $40,000, which will provide a livable wage for residents, benefits, training, and opportunities for advancement. In addition to providing work opportunities, the hospitals aim to improve the wellbeing of people living in low-income communities by connecting them to medical care and ensuring they have health coverage. The new positions will include community health workers and insurance counselors.

Both aspects of the program have the potential to provide long-term benefits to Baltimore families. People without insurance coverage are less likely to seek medical care when they need it and, as a result, can develop serious health problems that make it difficult for them to work.

Initially, administrators at Johns Hopkins Hospital proposed creating 1,000 jobs in an effort to improve the economic prospects of communities around the hospital. Although the final plan won’t reach its initial job creation goal, it is still a good first step.

More than 34,000 Baltimore residents live below the federal poverty line, which means a family of two earns less than $15,930 per year. Of that number, 6,162 work full time, year round. The injection of hundreds of jobs paying significantly more than minimum wage will stimulate the local economy and help families build a more secure future.