How Economic Impact Supports Health Care
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1 How Economic Impact Supports Health Care 44 th Annual Arizona Rural Health Conference Tuesday, July 25, 2017, 10:30 am Presented by: Gerald A. Doeksen, Oklahoma State University OK Cooperative Extension Service Phone: Website: R H W
2 Overview of Community Economic System Inputs $ Labor Basic Industry $ $ Goods & Services Inputs $ Products Households $ Services $ $
3 Multipliers can be calculated for: Zip Code (s) County Multiple Counties (regions) State Multiple States United States (national)
4 CASE STUDY: Economic Impact of a Local Hospital on a County Economy Local Hospital has DIRECT IMPACT: 67 Employees $3,450,000 in Labor Income (Wages, Salaries, & Benefits) Construction of $10,000,000 during the current year
5 CASE STUDY: Economic Impact of a Local Hospital on a County Economy EMPLOYMENT IMPACT Direct Secondary Total Impact Multiplier Impact Impact Hospital Operations Hospital Construction Total Combined
6 CASE STUDY: Economic Impact of a Local Hospital on a County Economy LABOR INCOME IMPACT Direct Secondary Total Impact Multiplier Impact Impact Hospital Operations $3,450, $621,000 $4,071,000 Hospital Construction $3,175, $698,703 $3,874,627 Total Combined $6,625,924 $1,319,703 $7,945,627
7 CASE STUDY: Economic Impact of a Local Hospital STATE AND LOCAL AND FEDERAL TAX IMPACTS Subcategory Total Category Tax Impacts Tax Impacts STATE AND LOCAL TAX IMPACTS State Income Tax $76,080 State, County & City Sales Tax $97,631 Property Tax $122,366 Other State & Local Taxes $281,837 Total State & Local Tax Impacts $577,914 FEDERAL TAX IMPACTS Personal Income Taxes $606,319 Other Federal Taxes $1,297,080 Total Federal Tax Impacts $1,903,399
8 CASE STUDY: Economic Impact of a State Policy State Medicaid Program Funding - Article from The Oklahoman on Oklahoma Medicaid program: Loss of $69M in state funds Loss of $98M in federal funds Total loss of $167M in state Medicaid funding Could result in: 8% Medicaid provider rate cut May cause State to lose providers May cause loss of access to care for Medicaid recipients
9 CASE STUDY: Economic Impact of a Loss in State Medicaid Funds OUTPUT IMPACT Direct Secondary Total Impact Multiplier Impact Impact State Medicaid Program -$167.0M $136.9M -$303.9M
10 CASE STUDY: Economic Impact of a Loss in State Medicaid Funds EMPLOYMENT IMPACT Direct Secondary Total Impact Multiplier Impact Impact State Medicaid Program -1, ,463
11 CASE STUDY: Economic Impact of a Loss in State Medicaid Funds LABOR INCOME IMPACT Direct Secondary Total Impact Multiplier Impact Impact State Medicaid Program -$90.8 M $42.7M -$133.5M
12 CASE STUDY: Economic Impact of a Loss in State Medicaid Funds STATE AND LOCAL AND FEDERAL TAX IMPACTS Total Category Tax Impacts Total State & Local Tax Impacts Total Federal Tax Impacts -$9.8M -$27.0M
13 R H W Summary of Economic Impact Studies Available
14 Economic Impact Studies Impact of Health Sector on State Economy Impact of Hospitals on a State Economy Impact of Medicaid on a State Economy Impact of a Medical School on a Community, Regional, and/or State Economy
15 Economic Impact Studies Impact of Telehealth on a Community, Regional, and/or State Economy Impact of Health Sector on Community Economy Impact of FQHC on a Community Economy Impact of Social Services Agencies on a Community Economy
16 Economic Impact Studies Impact of Replacement Hospital on a Community Economy Impact of a Critical Access Hospital on a Community Economy Impact of Rural Primary Care Physician on Community Economy Impact of a Physician Shortage on a Community Economy Impact of a Specialty Physician on a Community Economy
17 Economic Impact Studies Impact of a Rural Pharmacy on a Community Economy Impact of a Rural General Surgeon on a Community Economy Impact of a Health Network on a Regional Economy Impact of an Individual Health Network Provider on a County Economy
18 Economic Impact Studies Impact of a Veterinarian Practice on a Community, Regional, and/or State Economy Impact of a Rural Dentist on a Community, Regional, and/or State Economy Impact of Nurse Practitioner/Physician Assistant on a Rural Economy Impact of a Nursing Home on a Rural Economy (50 Beds, No SNF; 100 Beds, No SNF; and 100 Beds with SNF)
19 Economic Impact Studies Impact of Recent Hospital Closures on Rural Communities Impact of PPS Hospitals on Local Economies (26-50 Beds and Beds) Summary Document Economic Impact of Rural Health Care R H W
20 For more information, contact: OK State University, OK Cooperative Extension Service 513 Ag Hall, Stillwater, OK Website: Cheryl F. St. Clair; Fred C. Eilrich; R H W
R H W. October 2016 Research Study. National Center for Rural Health Works
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