Clearly, a hospital’s primary role is to improve and sustain the health and well-being of the communities they serve. Hospitals are there to provide necessary and critical care; are instrumental in emergencies; and, provide on-going community health education and information. They address and meet needs many don’t even know about until they are faced with an accident or diagnosis.
There is another benefit healthy and dynamic hospitals bring to their communities. Throughout Idaho, they are economic drivers that provide good jobs in a sector with evolving opportunities across a number of careers.
However, the impact hospitals have doesn’t end with good jobs. Industries and organizations often look at the overall economic impact they have locally or regionally. The impact model measures their ability to draw in new dollars to the defined economy (in this case both state and county-wide) as well as the impact of dollars spent within the region.
Like all other businesses, Idaho’s hospitals spend money to operate. Measuring these dollars is considered a “direct effect”. The dollars also have downstream impacts throughout the economy on services, sales, payrolls, jobs, and taxes – the indirect and induced effects. When economists measure the total impact a given industry or business has on the local economy they use the data to create a multiplier which measures the impact by taking into account the direct, indirect and induced effects. These multipliers are unique to the industry and to the local economy. We have created both county specific and statewide multipliers to assess the impacts hospitals have.
Considering the multiplier effect, hospitals generated over $9 billion in economic activity. Every $1 of hospital expenditures resulted in an addition $2 of economic activity (or impact) including clustered physician-related services. That activity leads to the support of jobs outside of the hospitals, impacts on state and local taxes, and the purchase of local goods and services.
For more information, please contact Darryl-lynn (208.489.1405).
In 2018, Idaho’s community hospitals accounted for about 7.8% of Idaho’s Gross State Product (GSP). Hospitals are a major economic engine for Idaho and considered key to the state’s efforts to recruit and retain new and expanding businesses. Your community hospitals employed: