By Mike Porter

Virginia Commonwealth University’s academic and medical operations generate $18.5 billion in economic activity annually and support 95,000 jobs – about 1 in 61 jobs statewide – according to a new report examining VCU’s impact on Virginia’s economy. 

Lightcast, a labor market analytics firm with expertise in higher education’s economic impact, worked with VCU Institutional Research, Decision Support and Data Strategy over an 18-month period to collect and analyze data. The report was completed at the end of February.

In the Richmond metropolitan area, the report found, VCU’s economic impact totals $15.8 billion, supporting 80,728 jobs – roughly 1 in every 12 jobs in the region.

“This report highlights the prodigious economic impact of VCU on the entire commonwealth,” said VCU President Michael Rao, Ph.D. “But beyond the data, it shows that as a major, national research institution, VCU is uniquely positioned to improve the lives of Virginians, prepare the next generation of Virginia’s workforce, heal and save patients' lives, and strengthen the social and economic fabric of the communities we serve.”

Within the entire VCU impact, the analysis also broke down the impact of VCU Health, which employs 14,640 full- and part-time workers. In fiscal year 2023-24, the health system spent $3.1 billion on operations, generating a net impact of $3.5 billion in added income to the region (equivalent to $6.4 billion in sales) and supporting 32,981 jobs.

VCU Medical Center is the region’s safety net hospital, serving patients regardless of ability to pay for care, and is its only academic medical center. It provides a hands-on learning and research environment for the university’s students and research faculty.

“VCU Health improves the health of Virginia’s economy, creates an environment that supports innovation, attracts and retains an outstanding workforce, and expands access to excellent patient care,” said Marlon Levy, M.D., senior vice president for VCU Health Sciences and CEO of VCU Health.

In addition to analyzing VCU’s impact through added income, sales and jobs supported, Lightcast found the average annual rate of return for Virginia taxpayers is 11.5%. The report concluded that every dollar invested in VCU brings gains to students, taxpayers and society as a whole.

In a presentation to VCU’s Board of Visitors on Feb. 27, Lightcast Vice President of Higher Education Engagement Anna Brown said, “When we look at the return on investment to three main stakeholders -- students, taxpayers and society -- we see that VCU is generating really strong returns, with students seeing a benefit-cost ratio of $6.30, taxpayers seeing a benefit-cost ratio of $2.00 and society seeing a benefit-cost ratio of $7.90.”

The full report is available at The Office of the President's website, including individual reports on both Virginia and the Richmond metro area.

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