Report shows Reid Health plays ‘critical role’ in region’s economy
September 2nd 2016
The Reid Health system provides at least 3700 direct and indirect jobs pumps almost $600 million a year into the regional economy and is one of the area’s largest employers according to information in an economic impact report released recently by the Indiana Hospital Association (IHA).
“Reid Health is critical to the economic viability of the community” the report summary notes as a major source of employment and purchaser of goods and services. Valerie Shaffer President of the Economic Development Corporation of Wayne County agrees. “Local healthcare options are very important to companies investigating our area” she said. “They like to know that their workforce has accessible care to ensure they remain healthy and productive – and if an accident on the job were to occur that an emergency room is only minutes away.”
Among the report’s findings based on information mostly from 2014 data:
- Reid Health’s direct and indirect impact creates an estimated annual payroll of almost $239 million.
- Almost $315 million was spent on goods and services and almost $40 million in capital spending.
- Dollars earned by its employees generated almost $239 million in economic activity in the region.
- And Reid Health pumps more than $30 million a year into the region through Community Benefit efforts which include direct grants to organizations educational programs and funding for health care.
The IHA based its report estimates of hospitals’ economic benefit to communities on the Regional Input-Output Modeling System II (RIMS II) developed by the U.S. Department of Commerce Bureau of Economic Analysis and used data based on the Medicare Cost Report. The report also includes additional data compiled at Reid Health.
Shaffer said the Reid Health system’s impact on the economy is something that other organizations would be hard-pressed to match because of the diversity of job skills. “Reid offers a variety of career pathways including medical professional and entry level that appeal to a large population” she said. “Reid is also continually recruiting new residents to this community that reinvigorate the county and add diversity.”
Jeff Plasterer Executive Director of the Eastern Indiana Regional Planning Commission echoed Shaffer on the importance of Reid Health to the area’s stability and economy. “Reid Health in particular and the healthcare industry in general are incredibly important to the regional economy” he said. “Reid is a stable recession resistant employer of individuals across a wide array of job classifications at better than average wages.”
Litao Zhong Ph.D. Director of Business and Economic Research Center at Indiana University East said Reid Health and the university are mutually beneficial partners that work together and benefit one another through education and skill training partnerships. “Together we can make an even bigger and deeper impact to our community” Zhong said.
Zhong also noted the “multiplier effect” of Reid Health in creating other jobs through dollars spent in the region. “The jobs dollars spent and payroll from Reid Health also create jobs dollars spent and payroll in other businesses in our community such as real estate restaurants supermarkets and retailers.”
“We have served the region for 111 years and we will continue to fulfill our mission by working diligently in a very challenging environment to ensure we survive and thrive for years to come.”
– Craig Kinyon Reid President/CEO
Craig Kinyon Reid President/CEO said the health system has a widespread economic impact throughout East Central Indiana and West Central Ohio through its employees satellite offices and construction projects from growth in the region. “By policy we always strive to ‘buy local’ by hiring regional crews for construction projects in the purchase of supplies and services and in providing jobs to people who live throughout the area we serve.”
Kinyon said Reid Health has team members from virtually every community and county in the region including Preble Darke and other counties in Ohio.
“We do not take for granted our importance to not only the health of the people in the communities we serve but also to the health of the economies of these communities” Kinyon said. “It makes it that much more vital that we continue to be excellent stewards of such a valuable asset.”
Shaffer said another way to realize the importance of a strong health care provider in a community is to look at what has happened in communities that have lost their hospitals. She cited an article this year in “Rural Roads” magazine by Dr. Christine Hancock that said 72 rural hospitals have closed in the United States in the past six years including at least nine in 2016.
“One in three rural hospitals is at risk of closing” Hancock said in the article titled “What a Hospital Closure Really Means for a Rural Community.” She said that when communities lose their hospital per capita income goes down unemployment increases an average of 1.6 percent property values decline and retail businesses suffer.
“Reid’s presence offers our residents many employment opportunities with excellent pay and benefits and with room for upward mobility” Shaffer said. Access to quality care can also make or break efforts to recruit new business and industry as well.
The impact report also cites the numerous other ways that Reid Health as a not-for-profit institution invests into community health through charity care Community Benefit grants sponsorship support of other organizations addressing health issues and even through the hours that Reid team members invest in community organizations and causes.
“We have served the region for 111 years” Kinyon said “and we will continue to fulfill our mission by working diligently in a very challenging environment to ensure we survive and thrive for years to come.”
Read the full report and obtain a printable version here: Reid Health Economic Impact Report