Economic impact of MSHA facilities in 2010 estimated at $1.3 billion

4/4/2011



JOHNSON CITY, Tenn. – A series of studies conducted recently by East Tennessee State University’s College of Business and Technology found that Mountain States Health Alliance (MSHA) facilities in Northeast Tennessee and Southwest Virginia brought approximately $1.3 billion to the region last year. This spending supported more than 12,000 jobs, representing more than $530 million in labor income.

The figures demonstrate that MSHA hospitals are major players in the local economies of the counties they serve and that they serve to bolster the fiscal viability of the region.

“Community hospitals are more than just care providers for local patients. The hospitals themselves are members of the community,” said Dennis Vonderfecht, President and CEO of Mountain States Health Alliance. “MSHA is proud to be a partner and advocate for the people and businesses of this region, providing economic benefit to the communities we serve.”

Even during tough economic times, MSHA has continued to bring capital dollars into the region by moving forward with the construction of three new facilities: Franklin Woods Community Hospital(FWCH), which was completed in July 2010;Johnston Memorial Hospital (JMH), set for completion in July 2011; and Smyth County Community Hospital (SCCH), set for completion in early 2012. These construction projects account for nearly $104 million of MSHA’s total 2010 economic impact. Last year, the projects supported 752 jobs, representing more than $31 million in labor income.

“The national economic downturn has been a challenge for MSHA just like every other business in the nation, but we felt it was important to invest in the economic future of the region and of our organization by continuing to pursue these projects,” said Marvin Eichorn, MSHA Vice President and CFO.

The ETSU economic impact studies were conducted over a period of six months and were designed to measure the direct and indirect impacts of hospital operations, including labor income, supply expenditures, and ongoing administrative expenses. The majority of the money spent by MSHA hospitals stays in the immediate area in the form of employee income and locally purchased goods and services.

“A substantial portion of a hospital’s expenditure is payroll, and these are high-paid positions,” said Jon Lane Smith, director of ETSU’s Bureau of Business and Economic Research. “Health care not only provides jobs and income, they provide good jobs and high incomes.”

Summary of MSHA’s economic impact in Northeast Tennessee and Southwest Virginia:

All MSHA facilities, 2010 impact, including construction impact: 


Total output effects (direct and indirect gross sales): $1,333,361,135


Labor income: $530,092,664


FTE employment: 12,096

All MSHA facilities, estimated ongoing annual impact: 


Total output effects: $1,229,387, 050


Labor income: $498,572,374


FTE employment: 11,327

 

Johnson City Medical Center


Total output effects: $599,056,383


Labor income: $241,928,250


FTE employment: 4,955

Franklin Woods Community Hospital


Total output effects: $60,900,712


Labor income: $24,752,414


FTE employment: 578

Sycamore Shoals Hospital


Total output effects: $52,376,131


Labor income: $28,102,200


FTE employment: 598

Indian Path Medical Center


Total output effects: $117,520,199


Labor income: $51,861,894


FTE employment: 1,105

Johnson County Community Hospital


Total output effects: $7,002,284


Labor income: $3,681,960


FTE employment: 71

Norton Community Hospital

Output effects: $44,352,944

Labor income: $23,005,002

FTE employment: 395

Dickenson Community Hospital


Output effects: $5,373,196


Labor income: $2,544,035


FTE employment: 42

Johnston Memorial Hospital


Output effects: $108,887,265


Labor income: $45,069,418


FTE employment 914

Russell County Medical Center


Output effects: $28,104,108


Labor income: $12,467,517


FTE employment: 253

Smyth County Community Hospital


Output effects: $45,965,018


Labor income: $24,155,677


FTE employment: 390


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