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

What's the Economic Potential forHealth Care in Your Community

Health Services Promote Job Growth

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 StartedInitiating

Group

Community

Health

Engagement

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

Web Site:

www.ruralhealthworks.org

H W Rural Health WorksR National Center for