OSU reports SMC economic impact
As part of Share Medical Center's engagement with Oklahoma State University to complete the Community Health Needs Assessment, the two entities have been working together to provide data on a number of economic indicators from jobs to salaries, and many other health sector factors contributing to the local and regional economy.
Lara Brooks, Extension Associate for OSU shared the findings of this recent research with a group of nearly thirty Alva area citizens at Northwest Technology Center on March 12, 2014.
Brooks noted that this information will be important to keep in mind as consideration is given to the healthcare needs of the community and as future plans for Share Medical Center are developed.
To view the entire report, click here. Or, type or copy http://smcok.com/sites/default/files/files/2014%20Alva%20Economic%20Impact%20of%20Health%20Sector.pdf into your browser window.
According to the report, the health sector creates employment and payroll impacts, which are important direct economic activities for the Share Medical Center service area. The health sector is divided into the following six components:
- Physicians, Dentists, and Other Medical Professionals
- Nursing and Protective Care
- Home Health
- Other Medical and Diagnostic Labs
As of 2014, the health sector in the Alva medical service area employs 383 full-time and part-time employees and has an estimated payroll of $17,152,102. The hospital provides 171 full and part-time jobs with an estimated annual payroll of $6,734,913 (including benefits). Physicians, dentists, and other medical professionals employ 51 total full and part-time employees with an estimated payroll of $3,830,466. Other medical and health services, home health agencies and nursing homes employ 140 total full-time and part-time employees with an estimated annual payroll of $5,648,551. Pharmacies have 21 employees with a total annual payroll of $938,172.
In addition to the direct impacts mentioned above, there are also secondary impacts of the health sector on the local/area economy. Brooks explained to the group the employent multipliers that help to further enhance the healthcare sector's impact in the area. The multipliers generated by the model are county-specific and are determined by historical spending patterns in the county. This shows the extent to which healthcare employees reinvest their healthcare earnings into the economy.
According to the report, the hospital has a direct employment of 171 full-time and part-time employees; applying the employment multiplier yields a total employment impact of 211 employees (for every 1 hospital employee, there are 0.23 additional employees working to serve the workforce). The total employment impact of the health sector in Share Medical Center medical service area is estimated to be 475 employees.
Income multipliers have been applied as well. The income multiplier for the Hospital component is 1.16. So, for each dollar in in hospital salaries and benefits, $0.16 are created throughout the area due to business (indirect) and household (induced) spending. The Hospital component has a total payroll of $6,734,913; applying the income multiplier brings the total Hospital income impact to $7,803,972. The total income impact of the health sector on the economy of Share Medical Center's service area is projected to be $19,960,968.
Overall population trends as well as employment and income trends for the entire service area are also included in the SMC impact report. The data demonstrates why it may be important to invest in advances in the health sector. Population trends influence the demand for services currently offered and potentially justify new services previously deemed to not be viable.
To complement the data as SMC and OSU work together with the community to make future plans, area citizens are encouraged to take a brief survey that will further help to identify the demand for health services in the area. Click here to take the survey. Or, type or copy https://okstatecasnr.qualtrics.com/SE/?SID=SV_9FbmUcSwk8EyoT3 into your browser window. The survey will close April 4, 2014.
Public input will be compared to the information from the economic impact report to help further determine not only what services are wanted by consumers, but the extent to which these will be viable in the area.
For more information, contact SMC Marketing Director, Kelly Parker (office at the Homestead) at 580.327.4080.