Eds and Meds Anchor Institutions

"Eds and meds" is the common shorthand for the universities ("eds") and hospital systems ("meds") that anchor Philadelphia's economy. Together they are the city's largest private-sector employers, among its largest landowners and, because most are tax-exempt charities, a recurring subject of debate about their fiscal contribution to the city. ^[1]

1 Economic weight

Lists of the region's largest private employers consistently place the University of Pennsylvania first, followed by the Children's Hospital of Philadelphia, Thomas Jefferson University Hospitals, Temple University and Temple University Hospital. Penn alone reports more than 40,000 local employees. The sector's payrolls generate city wage-tax revenue and its research generates federal and philanthropic funding, which makes it central to economic-development strategy and to initiatives run by the Commerce Department and the Philadelphia Industrial Development Corporation. ^[1]

2 Tax exemption and PILOTs

Under Pennsylvania's Institutions of Purely Public Charity Act (Act 55 of 1997), organizations that meet statutory criteria are exempt from property tax. A WHYY analysis found that universities and hospitals that could pay voluntary payments in lieu of taxes (PILOTs) held at least $3.6 billion in property, about 6.4 percent of the city's total market value, which at prevailing rates would equate to at least about $106 million in tax. The same reporting said the city then collected less than $700,000 a year in PILOTs, down from a goal near $10 million a year in the mid-1990s, and that several major universities had no agreement with the City. Institutions respond that they provide charity care, scholarships, community programs and employment, and that they contribute through wage and other taxes paid by employees and by their own payroll-related taxes. Individual institutions have periodically announced voluntary commitments, such as the University of Pennsylvania's $100 million commitment reported by WHYY in December 2020, while WHYY noted at the time that the region's other large universities had not announced comparable pledges. The Inquirer reported in March 2025 that Mayor Cherelle Parker was asking the city's "eds and meds" to help fill holes in the city budget, citing sources. The PILOT figures above date from the time of that reporting and change, so readers should consult current City Controller and budget reports. ^[2]

3 Land use and neighborhoods

Campus and hospital expansion has repeatedly shaped West Philadelphia, North Philadelphia and Center City, and it is reviewed through the zoning process (see Philadelphia Zoning Code and Registered Community Organizations). Community groups have negotiated benefits and raised concerns about displacement and rising housing costs near campuses, while institutions point to jobs, safety and commercial revitalization. The University City District, a business improvement district, was founded with Penn and other institutional backing (see Center City District and Business Improvement Districts).

4 Civic and political roles

Institution presidents and senior executives sit on civic boards, philanthropic boards and the Chamber; they work with the mayor on education, workforce and public safety programs. Unions representing health-care workers and graduate students have organized at several institutions (see Service and Health Care Unions). The institutions also lobby at the state level on funding for Temple (a state-related university), Penn's veterinary school, medical assistance reimbursement and research.

5 Public-sector connections

The Community College of Philadelphia, Temple and the School District run partnerships with these institutions. Temple University Hospital, Jefferson and Penn also serve as major trauma and emergency care providers, which links them to the city's public health system.

See also: Philanthropy in Philadelphia, Tax Abatement and Development Incentives, Philadelphia Taxes.

References

1. Philadelphia Inquirer, "The 15 largest private employers in Philadelphia"; University of Pennsylvania and Penn Medicine employment reporting (Forbes best-employers coverage in The Daily Pennsylvanian).
2. WHYY, "Are our city's anchor institutions a revenue drag?" and "Will Philadelphia squeeze PILOTs out of more nonprofits?"; Pennsylvania Institutions of Purely Public Charity Act, 10 P.S. 371 et seq.; WHYY, "Philly's other big universities stay silent after $100M UPenn donation," December 2, 2020; Inquirer, "Mayor Cherelle Parker is asking Philly's 'eds and meds' to help fill holes in the city budget, sources say," March 11, 2025.