Post on 15-Dec-2015
transcript
by:
Gerald A. Doeksen, Regents Professor and Extension Economist
Pamela S. Hartman, Extension Associate
Cheryl F. St. Clair, Associate State Extension Specialist
National Center for Rural Health WorksOklahoma Cooperative Extension Service
Oklahoma State University(405) 744-6083
Mississippi Delta ProjectMississippi Rural Hospital Improvement Project
February 2010
The Economic Impact of the Health Sectoron the Economy of St. James Parish, Louisiana
50 Miles toManaged Care
Hometown CountryHospital
Small Town, U
SA
Big City
Movement to Managed CareMovement to Managed Care
May Cause a By-Pass of Local Health CareMay Cause a By-Pass of Local Health Care
To attract business and industry, research indicates the area needs quality:
• Health services and• Education services
To attract retirees, research indicates the area needs quality:
• Health services and• Safety services
Overall objective: To measure the economic impact
of the health sector on the economy of St. James Parish
Specific objectives:
1. Review national health trend data;
2. Review demographic and economic data for St. James Parish and the State of Louisiana;
3. Summarize the direct economic activities of the health sector in
St. James Parish;
4. Present concepts of community economics and multipliers; and
5. Estimate the economic impact of the health sector on
St. James Parish.
Table 1United States Health Expenditures and Employment Data
1990-2008; Projected for 2015 & 2018 United States Data
Total Per Capita Health Health Ave. Yrly.Year Health Health as % Sector Increase in
Expenditures Expenditures of GDP Employment Employment ($Billions) ($) (%) (000) (%)
1990 714.1 2,814 12.3% 7,814 4.8%
2000 1,352.9 4,789 13.6% 10,858 3.9%
2002 1,602.4 5,564 15.1% 11,536 3.1%
2005 1,982.5 6,701 15.7% 12,314 2.1%2008 2,338.7 7,681 16.2% 13,469 4.0%
Projections
2015 3,541.3 10,929 18.9%
2018 4,353.2 13,100 20.3%
National Gross Domestic Product
National Health Care Expenditures
Type of Health Service
Health Services16.2%
All Other Services 83.8%
$2.3 trillion
Nursing HomePrescription Drugs
Other
Hospital Care
Figure 1.National Health Expenditures
as a Percent of Gross Domestic Product and by Health Service Type, 2008
Physician Services
31%
21%
6%10%
32%
Table 2
Census Population, Population Estimates, and Percent Changes
for St. James Parish Cities and Towns, St. James Parish, and the State of Louisiana
Census Estimates 10 Years 8 Years
1990 2000 2008 '90-'00 '00-'08
Gramercy town 2,412 3,066 3,254 27.1% 6.1%
Lutcher town 3,907 3,735 3,464 -4.4% -7.3% Balance of Parish 14,560 14,415 14,513 -1.0% 0.7%
St. James Parish 20,879 21,216 21,231 1.6% 0.1%
State of Louisiana 4,219,973 4,468,976 4,410,796 5.9% -1.3%
Table 3Population, Projected Population and Projected Percent Changes
for St. James Parish and the State of Louisiana
Census Projected Population Population
2000 2010 2015 2020
St. James Parish 21,216 22,310 23,020 23,770
State of Louisiana 4,468,976 4,683,030 4,840,140 4,991,410
Percent Change 10 Years 15 Years 20 Years
'00-'10 '00-'15 '00-'20
St. James Parish 21,216 5.2% 8.5% 12.0%
State of Louisiana 4,468,976 4.8% 8.3% 11.7%
Table 4aEmployment and Payroll for Health Services and Total Parish Services
for St. James Parish and the State of Louisiana
EmploymentBased Health Total Health Services Health Serviceson Services Parish as a % of Total as a % of Total NAICS* Employment Employment Parish Employment State Employment
1999 384 5,966 6.4% 14.6%2000 384 5,707 6.7% 14.6%2001 364 5,560 6.5% 14.7%2002 339 5,395 6.3% 15.5%2003 364 4,977 7.3% 15.8%2004 379 5,401 7.0% 16.0%2005 466 6,013 7.7% 16.4%2006 406 5,634 7.2% 15.9%2007 449 5,903 7.6% 15.7%
% Change '99 - '07 16.9% -1.1%
Table 4b (Continued)Employment and Payroll for Health Services and Total Parish Services
for St. James Parish and the State of Louisiana
Payroll
Based Health Services Total Parish Health Services Health Serviceson Payroll Payroll as a % of Total as a % of TotalNAICS* ($1,000s) ($1,000s) Parish Payroll State Payroll
1999 7,741 210,548 3.7% 14.5%2000 7,649 212,559 3.6% 14.5%2001 7,782 216,851 3.6% 14.6%2002 8,973 220,029 4.1% 15.7%2003 9,353 193,769 4.8% 15.6%2004 10,088 227,874 4.4% 16.0%2005 12,969 295,916 4.4% 15.7%2006 12,427 301,273 4.1% 15.0%2007 14,001 338,901 4.1% 15.0%
% Change '99 - '07 80.9% 61.0%
Table 5Direct Economic Activities of the Health Sector
in St. James Parish, Louisiana
Total Full- and Part- Total Payroll Time Employment with Benefits
Hospital 156 $8,095,000
Physicians, Dentists & Other Medical Professionals 82 $5,037,687
Pharmacies/Durable Medical Equipment 25 $930,483
Other Health and Medical Services 145 $5,146,744
TOTALS 408 $19,209,914
Figure 2.Overview of County Economic
System
Households
IndustryBasic
Goods &Services
$
Labor Inputs
ProductsInputs
$ $
$
$
Services
$ $
Table 6Impact of Health Sector Employment
in St. James Parish, Louisiana
Health Sector Direct Secondary TotalComponent Impact Multiplier Impact Impact
Hospitals 156 1.31 48 204Physicians, Dentists & Other
Medical Professionals 82 1.28 23 105Pharmacies/DME 25 1.27 7 32Other Health & Medical Services 145 1.27 39 184
TOTALS 408 117 525
Table 7aEconomic Impact of the Health Sector Income
in St. James Parish, Louisiana
Health Sector Direct Secondary Total
Component Impact Multiplier Impact Impact
Hospitals $8,095,000 1.23 $1,861,850 $9,956,850 Physicians, Dentists & Other
Medical Professionals $5,037,687 1.16 $806,030 $5,843,717 Pharmacies/DME $930,483 1.20 $186,097 $1,116,580
Other Health & Medical Services $5,146,744 1.25 $1,286,686
$6,433,430
TOTALS $19,209,914 $4,140,663 $23,350,577
Table 7b (Continued)Economic Impact of the Health Sector Income
in St. James Parish, Louisiana
Health Sector Component
Retail
Sales One Cent Sales Tax
Hospitals $1,045,469 $10,455 Physicians, Dentists & Other Medical Professionals $613,590 $6,136 Pharmacies/DME $117,241 $1,172 Other Health & Medical Services $675,510 $6,755
TOTALS $2,451,810 $24,518
NEXT STEPS
I. Community Health Engagement Process
A. Where is the community now?
B. Where does the community want to go?
C. How will the community get there?
Community Health Engagement Process
Process takes 90-120 days Involves community input
Objective: Get community involved to plan community health services.
Goal: Local people use local services Local people identify new services Local people strongly supporting local medical services
Getting Started
CommunityFacilitator
ResourceTeam
SteeringCommittee
InitiatingGroup
Community
Health
Engagement
Getting Started
PublicityTask Force
CommunityFacilitator
ResourceTeam
SteeringCommittee
InitiatingGroup
Community
Health
Engagement
Getting Started
InventoryTask Force
Community
Health
Engagement
PublicityTask Force
CommunityFacilitator
ResourceTeam
SteeringCommittee
InitiatingGroup
Getting Started
Community
Health
Engagement
InventoryTask Force
SurveyTask Force
PublicityTask Force
CommunityFacilitator
ResourceTeam
SteeringCommittee
InitiatingGroup
Getting Started
Community
Health
Engagement
InventoryTask Force
SurveyTask Force
PublicityTask Force
CommunityFacilitator
ResourceTeam
SteeringCommittee
InitiatingGroup
Data & InfoTask Force
Community Health Engagement Process
Getting Started
ImplementAction Plan
DevelopPlan
Follow-Up &Continuation
InventoryTask Force
SurveyTask Force
PublicityTask Force
CommunityFacilitator
ResourceTeam
SteeringCommittee
InitiatingGroup
Data & InfoTask Force
Community Feasibility Studies –BUDGETS
Objective: Identify any that may aid the community in expanding health services
Goal: If feasible, community decision if service will be implemented
Basic Methodology for Analyzing an Issue
I. Estimate Needs
II. Project Costs
A. Capital or Start-Up CostsB. Annual Operating Costs
III. Estimate Revenue
IV. If Doesn't Break-Even, Other Source of Funds
Available Budget Studies
• Primary Care Physician• OB/GYN• Pediatrician• EMS (Basic, Int., and
Advanced)• Emergency Medical
Responder (EMR) Systems
• Outpatient Rehabilitation
• Adult Day Services• Kidney Dialysis• Assisted Living Facilities• Community Health
Centers• Rural Health Clinics• Specialty Physicians• Others, as requested