HEALTHCARE & ECONOMIC DEVELOPMENT

VIRGINIA CHAMBER 2012 HEALTHCARE CONFERENCE

JUNE 7, 2012

ROBERT W. MCCLINTOCKRESEARCH DIRECTOR, VEDP

EVOLVING STORY IN ECONOMIC DEVELOPMENT

As healthcare issues have entered the mainstream of business …

So too, are we recognizing an intersection between economic development and healthcare.

Economic DevelopmentHealthcare

HEALTHCARE: ECONOMIC IMPACT

Healthcare: Estimated at 17.9% of U.S. GDP (2010) $2.6 trillion

-up from about 16% just 6 years agoIn VA, 2011 economic impact estimated at $27.7 billion

(for hospital and health systems only)Employment:Healthcare & healthcare support occupations together

represent about 12 million U.S jobs (2010)(~ 8.4% of all national employment)

VIRGINIA HEALTHCARE & RELATED EMPLOYMENT

Virginia Healthcare Employment, 2011 Category Employment

Ambulatory Care 154,685Hospitals 122,668Social Assistance 82,573Pharmacies and Drug Wholesalers 19,728Life and Health Insurance 11,885Medical Supplies and Equipment 9,341Public Health Programs 6,786Research & Testing 3,832Pharmaceuticals 3,146Total 414,644Source: VEC, QCEW (1Q11-4Q11) 

VIRGINIA HEALTHCARE & RELATED EMPLOYMENT

Of the top 50 employers in Virginia, eight are hospital systems

IF WE’RE ABOUT JOBS…..

• Healthcare and support occupations reflect an importance surge in recent and projected growth

• 2006-2010:– U.S. overall lost 7.5M jobs (-5.0%)– Healthcare employment rose by 1.07M (+21%!)

• Going Forward:– BLS projects 3.46M jobs in field by 2020– About 30% over the decade ending 2020– Double the growth rate of all occupations

JOBS…..AND WHERE TO FIND THEM

• 13 of the 20 fastest growing occupations are in the healthcare or related fields

The list includes practitioners and technical occupations as well as large office and administrative support occupations -- employed across many different industries and will gain jobs as the economy recovers

• Implications for education & workforce providers• Also, real estate – changing means of service

delivery & locations for facilities; outpatient and satellite needs; new product mix

VIRGINIA PROJECT ANNOUNCEMENTS 2010-2011

Project Announcements 48 +167%

New Jobs 3,184 +96%

New Capital Investment $457.1 Million +325%

• Economic development projects increasingly include names associated with Healthcare, Life Sciences, Medical and Related Industries.

• These types of projects are up significantly from the previous 2-year period.

RECENT VIRGINIA PROJECT ANNOUNCEMENTS

Defense Health Headquarters (DHHQ)

ECONOMIC DEVELOPMENT - SITE SELECTION

• Although Virginia’s Overall Cost Profile is competitive– Ranked #14 in employer’s share of family coverage health

premiums (Kaiser Family Foundation)– 93% of the U.S. Average

• Conversation moving beyond cost considerations• Quality and Accessibility of Care beginning to show up in

regional analyses by consultants/clients• Not yet a “Top 5” consideration, but comes up as Quality

of Life is being evaluated

ECONOMIC DEVELOPMENT - SITE SELECTION

• Healthcare……….Stronger linkages to Talent Acquisition & Workforce – Relates to skills, depth, educational attainment,

insurance costs, innovation, productivity– Ultimately connects to competiveness and sustainability

of the operation• Gets to operating bottom line• Communities’ shifting awareness emerging in new

marketing messages and promotion of regional wellness, outdoors initiatives & branding

Thanks!