Hospitals and Missouri’s Economy

The Missouri Hospital Association holds it’s annual meeting this week and I’ll be in attendance a couple days and that prompted me to share some information about the impact hospitals have on Missouri’s economy.  Last week I did a blog on the value of a hospital to the local community, today’s blog is about the value of hospital’s to the states economy.
In October the Missouri Hospital Association submitted a report to the Missouri Department of Economic Development.  This blog shares pieces of that report.

Missouri’s hospitals clearly are a mainstay of the state’s economy. In communities large and small, urban and rural, residents rely on hospitals for much more than medical care. During the extensive statewide job losses of the last year, hospital employment bucked the trend, adding new jobs. The trend shows every sign of continuing, with increasing demand for health care services making selected health care jobs some of the state’s fastest-growing occupations.

The National Center for Rural Health Works has researched the link between health care and economic viability. It found that one primary care physician working in a rural area generates $1.2 million in annual revenue and creates 23 jobs. Conversely, the loss of one half-time doctor translates into a community loss of more than a half-million dollars and 14 jobs.

 Missouri’s 153 hospitals employ 114,000 full-time equivalent employees — 4.5 percent of Missouri’s total employment. Every hospital job in Missouri supports two more. In 2008, Missouri hospitals’ payroll and benefits totaled $7.1 billion. When hospital payroll is multiplied2 to project its aggregate effect on the economy, it has an additional economic benefit of $5.8 billion — a total of $12.9 billion for Missouri’s hospital payroll and benefits alone.

Researchers also have found a direct link between the availability of health care services and economic development. When companies are looking to locate their businesses in a community, a major consideration is access to quality health care.

 Hospitals have been one of the few employers in Missouri generating new jobs during the current economic downturn. They have been an important stabilizing force during this time of uncertainty. Meanwhile, the outlook for workers seeking health care jobs is bright.

Of the 20 occupations in Missouri with the most openings from 2008-2010, health care accounted for 37.3 percent. By 2016, a 12.3 percent increase in the health care workforce is projected statewide.5 As the population ages, the need for health care services increases, and those services must be delivered by trained health care professionals.

In addition, hospitals contribute to the state’s overall employment picture through their continual investments in buildings and equipment to keep pace with changes in technology and the provision of medical care. These investments benefit communities and often provide jobs in other sectors of the economy, such as the building trades. Especially because of the economic downturn, these investments had a significant positive effect on the economy.  Missouri hospitals invested $1.4 billion in capital improvements in 2008. 
Eighty percent of Missouri counties — many of them rural — don’t have enough physicians. When combined with the aging population, there will be an extreme need for more primary care physicians, especially in rural areas.
Individually, Missouri hospitals play a key role in recruiting new physicians to the state, especially in rural areas. Those physicians help strengthen the health care system in each community by contributing to its economic viability and medical service infrastructure.

 

 Missouri’s hospitals are committed to providing health services to all Missourians. In 2008, Missouri hospitals provided $1.3 billion in unreimbursed care to patients.

Working together and individually, Missouri’s hospitals will continue to add value to the state’s economy through significant contributions in its future economic, social and health care needs. It is estimated that nearly 500,000 Missourians will be newly insured under the health care reform law. To care for them will require significant hospital investment in capital and workforce. Opportunities currently being pursued include pending grant funding that potentially could bring tens of millions of dollars to Missouri, investments in health information technology and continuing contributions to building a robust health care workforce.

The economy of Missouri depends on Missouri hospitals.

About Craig Thompson

I am a young professional with two great sons, and I work in the healthcare setting. I am employed in hospital administration and serve as Chief Operating Officer at Golden Valley Memorial Healthcare in Clinton, Missouri. These are challenging and exciting times in healthcare and my blog will focus on healthcare, raising boys or being raised by boys, and living in mid America.
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