Vanderbilt Adds $22.13B to Tennessee, Nashville Economies
Between 2019 and 2024, Vanderbilt University and Vanderbilt University Medical Center made a $22.13 billion in economic impact on the city of Nashville and across the state of Tennessee.
The university has released the results of an independent analysis that examines the economic impact of the university and the medical center and outlines the many ways the two institutions contribute to, and benefit, Tennessee’s economy.
Vanderbilt’s annual contributions stem from institutional spending on payroll, construction and general procurement with Tennessee companies, from local spending by students and campus visitors, and from economic development through labor force and research commercialization.
“Amid a national conversation about the essential value of universities to American strength and competitiveness, we are proud, as a university and as Nashvillians, to highlight once again the immense economic benefits Vanderbilt provides to our city, state and region,” Chancellor Daniel Diermeier said. “This report notes in particular that urban research universities like Vanderbilt give their home cities a competitive advantage and propel the local economy not only through our basic operations, but also through the innovation and discovery that we are increasingly commercializing and applying with our partners in government, business and civil society.”
Economic Contributions and Employment
As the largest private employer in the Nashville area and the second-largest private employer in Tennessee, Vanderbilt’s reach extends far beyond its campus to shape the region’s economy, quality of life and future growth.
Though VUMC became a fully independent nonprofit entity in spring 2016, the medical center has preserved its research and teaching connections to the university. Together, the Vanderbilt institutions employ approximately 50,000 employees, making them central to the region’s economy.
The two institutions generated approximately 120,000 jobs in Nashville, accounting for more than 10 percent of the 1.16 million jobs in the area as of fiscal 2024.
Additionally, the combined direct spending of the university and VUMC in Nashville reached $10 billion last year alone. Their economic activity supported a total of $7.46 billion in labor income, a total that reflects the significant role they play in the city’s financial health.
“This report brings into focus the importance of Vanderbilt’s overall economic impact on Tennessee and the surrounding region. The medical center’s growing geographic footprint is accompanied by an increase in economic activity in the communities we serve-not only through the hospitals and clinics we operate, but through personal spending by our workforce. Increasingly, our employees live and work in these same communities,” said Jeff Balser, president and CEO of VUMC and dean of Vanderbilt University School of Medicine.
Community Engagement and Support
Vanderbilt’s impact extends well beyond the economy, with a strong commitment to enhancing the quality of life in Tennessee.
In fiscal 2024, VUMC alone provided $952 million in charity care, community benefits and other unrecovered costs. This support includes costs directly supporting patients through financial assistance, along with unreimbursed costs for government programs such as TennCare. Other benefits include community health improvement grants and investments in medical research and education for health professionals.
Through strategic partnerships with local organizations, the university extends its economic impact in the community. Programs like the Community Impact Fund that offers collaborative grants to nonprofits, the Nashville Catalyst Fund that addresses affordable housing challenges, and the Nashville Innovation Alliance that improves the region’s innovation ecosystem-all exemplify Vanderbilt’s commitment.
These strategic partnerships ensure that Nashville’s economic growth has a positive and inclusive impact throughout the community and connects Vanderbilt research and expertise to community needs.
Other initiatives include the Roberts Academy and Dyslexia Center, the Nashville Vanderbilt Scholars Program, the Osher Lifelong Learning Institute, the Dyer Observatory, the Vanderbilt Outreach Initiative for Community Empowerment, Collaborative for STEM Education and Outreach, and partnerships with the National Museum of African American Music and Tennessee Performing Arts Center, to name a few.
“For over 150 years, Vanderbilt has invested in community initiatives that support a thriving city and region,” said Vice Chancellor for Government and Community Relations Nathan Green. “By intentionally fostering strategic partnerships with local organizations, government agencies and businesses, we extend our reach in ways that create meaningful, lasting benefits for Nashville and beyond.”
Visitor and Student Impact
Vanderbilt’s presence has had a major influence on Nashville’s tourism and events. The university and medical center collectively generated $299 million in visitor spending last year, including campus and sporting events, conferences and medical services.
VUMC hosted 3.3 million patient visits in FY24, with 80,000 hospital discharges, 81,000 surgical cases and 213,000 emergency department visits.
More than 19,000 visitors came to Nashville for Move-In, Reunion, Family Weekend and Commencement in 2024, while 45,000 visitors come annually for Undergraduate Admissions programming, including campus visits. Attendance at Vanderbilt sporting events topped 488,500 in 2024.
The university also contributes more than 4,000 undergraduate, graduate and professional degrees to the economy each year.
Ongoing Construction and Campus Growth
Vanderbilt University has significantly invested in campus development, with $1.45 billion in construction projects during the past five years. The completion of the West End Neighborhood project included the construction of multiple residence halls such as Zeppos and Rothschild colleges, and the expansion of the Owen Graduate School of Management. VUMC completed $787 million in construction during that same time, with its largest project being the Jim Ayers Tower completion.
Regional Economic Development and Innovation
Research and innovation at Vanderbilt have played a crucial role in fostering Tennessee’s economic development.
The report highlights that research universities push the frontiers of science and are anchors of regional economic growth that support their cities by providing a steady stream of high-skilled workers, attracting faculty research entrepreneurs, encouraging private-sector research and development partnerships and leading core regional technical capabilities.
In FY23, the medical center and university allocated more than $1 billion toward research and development activities. Vanderbilt completed more than 1,500 patent applications and industry agreements, highlighting its significant contributions to advancing technology and commercializing new ideas.
Vanderbilt-affiliated startups have flourished in Tennessee over the past five years, with 32 new companies emerging, including those in life sciences, AI and mobility, and health tech. Over the past decade, Vanderbilt researchers and their innovations have helped to position the university as a world leader in numerous medical research sectors-medical technology and imaging, personalized medicine, and drug discovery and development. Vanderbilt also contributed $258 million in revenue from its licenses, and 402 U.S. patents have been issued on inventions originating from the university and medical center.
VUMC now owns five hospitals, including three regional hospitals, and has clinical sites in more than 200 locations across a five-state region. The medical center offers more than 200 residency and fellowship programs and trains more than 1,200 resident physicians every year. VUMC is the only training center in the state for dozens of adult and pediatric specialties.
In June 2024, Vanderbilt and the mayor’s office launched the Nashville Innovation Alliance, which has brought together public, private, civic and education institutions to collaborate on improving the region’s ecosystem for innovation and research. Through initiatives around talent, capital attraction and startup support, the alliance aims to increase innovation capacity and boost awareness of Nashville as a hub for technology creation.
The 2025 report and analysis, created by Austin, Texas-based TXP Inc., quantified the total annual economic and tax revenue generated by the university and medical center, including factors such as operations and construction, employment, student and visitor spending, and business spending generated by Vanderbilt-related activities. It also estimated the ripple effect-in jobs and labor income-of Vanderbilt’s operations and spending throughout Tennessee’s economy.
View the full report>>
Students move into the Ingram Commons at the start of Fall Semester 2024. (Vanderbilt University)
Commencement 2024 welcomed families to Nashville to celebrate their student’s graduation.
Reunion and Homecoming Weekend 2024 (Vanderbilt University)
https://news.vanderbilt.edu/2025/03/26/vanderbilt-contributes-22-13-billion-to-tennessee-nashville-economies-since-2019/