The Missouri Hospital Association recently released a report on the economic impact of hospitals to the State of Missouri’s Economy. Here’s a summary:
Missouri has 115 counties, including St. Louis City. In 2009, there were 156 hospitals in Missouri. These hospitals had a total of 21,941 staffed beds. Forty-one of the state’s 115 counties (home to 10 percent of Missourians) do not have a hospital while 24 counties have two or more hospitals. Of the 41 counties without a hospital, 11 are metro counties, and 30 are nonmetro counties. Forty-one percent (71 of 156) of the hospitals are concentrated in just eight metro counties (in which 52 percent of the Missourians reside). There are 10 workforce investment areas in Missouri, and all of the WIAs have at least seven hospitals. The maximum number of hospitals in any WIA is 35. Three of the WIA (Kansas City, Central and St. Louis regions) have 64 percent of the population and 71 (45 percent) of the 156 hospitals.
More than 877,000 inpatients, approximately 9.7 percent nonresidents, and more than 21 million outpatients, approximately 3.6 percent nonresidents, were served by Missouri hospitals in 2009. However, the importance of hospitals extends far beyond the provision of health care. In serving the health care needs of Missourians, Missouri hospitals provided more than 121,000 full-time equivalent direct jobs in 2009.
Missouri hospitals collected more than $17.2 billion of net patient revenue in 2009. Of that, $10.5 billion came from Medicare and Medicaid sources. Missouri hospitals attract a considerable amount of federal resources while serving Missouri Medicare and Medicaid patients. These resources are critically important for most rural hospitals to thrive financially, and they play an important role in the growth and vitality of the state’s economy.
Missouri hospitals also support their local communities though various donations, charity care and uncompensated care. In addition, Missouri hospitals provide educational programs (e.g. diabetes support, smoking cessation, heart health, and weight management programs).
For all Missouri hospitals, the total employment impact was 265,124 jobs, and the total value-added impact was $18.8 billion. This is based on the statewide employment multiplier of 1.80 and the statewide value-added multiplier of 1.94. The state hospital employment multiplier of 1.80 indicates that for every 100 employees in the hospital sector, 80 additional jobs are generated in other sectors of the state economy. The secondary employment was 117,959. Similarly, the secondary value-added was $9.129 million.
Dollar value and peace of mind value!