FEATURED ARTICLE
Growing Local Economies through Robust Healthcare Infrastructure
From small rural towns to bustling metropolitan cities, all businesses, jobs, and local agencies are interdependently connected. Many factors are in play as communities contemplate growth strategies. Thriving communities depend on access to critical infrastructure such as roads, schools, and healthcare.
This quarter’s Rose Report reviews not only the very real and well-established hypothesis that hospitals and health systems are the economic engine of most communities, whether urban or rural. But we also take a look at the flip side of that coin, where emerging evidence demonstrates that healthcare systems are expanding beyond their bricks and mortar facilities and into their communities through collaborative efforts that impact the overall health of the communities they serve.
To review the economic impact of this sector, we’re reminded that the healthcare sector drives direct and indirect investment in communities. In both North and South Carolina, this sector ranks consistently in the top tier of employers across regions. According to the North Carolina Healthcare Association, health systems and hospitals directly and indirectly support more than 500,000 jobs across North Carolina, 8% of total employment. They provide 268,000 direct jobs and support an additional 247,000 jobs in other industry sectors, supporting 1 in 8 North Carolina jobs. In other words, the goods and services hospitals purchase from other businesses create additional economic value for the community. When you add in these “ripple effects,” each hospital job supports nearly two additional jobs. Moreover, every dollar spent by a hospital supports $2.30 of additional business activity.
Health systems are among the top 10 employers in at least 92 of North Carolina’s 100 counties and health systems and hospital operations generated $40 billion in GDP impacts in 2020. This is roughly 6% of the total state GDP. We see a similar story play out in South Carolina. Healthcare systems and hospitals consistently rank in the top 5 of employers throughout the state.
Economic development and healthcare work side-by-side to create vibrant communities – rural, urban, and suburban. Over the past decade, leaders in this sector have begun to focus more and more on the value of strategic partnerships as a means of sustaining long-term viability. Building partnerships with other healthcare organizations, community groups, civic leaders and local residents is becoming part of the operational DNA of many health systems. Many are finding that this is the best way to understand and respond to the needs of their community, to continually upgrade the quality of life in the community, and to improve access to quality of care, all of which are important factors in mitigating
outmigration for healthcare services.
Leaving communities for care is a persistent problem in rural communities in particular. According to Guidehouse, “analysis of migration patterns of residents who live in rural counties in six states shows 76% of patients with a local hospital outmigrated for care (e.g., bypassed their local area and hospital to receive care elsewhere), compared to 35% and 23% of suburban and urban patients, respectively.” Patients that leave their local community to seek care that is also available where they live, take their purchasing power with them. As economic development professionals, understanding the vital role that hospitals and health systems play in the economic vitality of towns, cities, and regions is important as we seek to advise elected leaders, administrators, and planning professionals.
For more information, or for a consultation on your community’s healthcare infrastructure contact Karen Bentley at kbentley@roseassociates.com
NEWS & EVENTS
Rose Associates Launches New Website!
Visit our new website that also includes new team members Karen Bentley and Max Bellile. We have also expanded our services. Check it out and be sure to subscribe to our Rose Report below for future issues.
ADVISORY PROJECT UPDATES
Rose Associates’ work continues on the following projects:
- In Iredell County, NC Rose Associates teamed up with Clarion Associates to work on an updated Comprehensive 2045 Horizon Plan. Local conditions have changed significantly since the plan was adopted in 2009, particularly substantial growth in residential housing and industrial development. The focus of this plan is on the balance between preservation and development of the northern rural areas of the county.
- In Clayton, NC, work on the Downtown Plan is coming to a close on the draft plan with our strategic partner, McAdams. This fast growing community in Johnston County is within commuting distance to Raleigh.
- Rose Associates’ work also continues on the corridor study for US 70 West Corridor, a 19-mile section in Orange & Alamance Counties. Working with VHB, the Rose team is considering transportation and real estate impacts from the region’s continued growth.
- Rose Associates is excited to expand its strategic partnership with Bolton-Menk/ColeJenestStone and our work together with the City of Charlotte (on-call services) and the newest project, Pacific Mill in Lyman, SC. The team is collaborating to envision new life for this strategic site in the town center situated between Spartanburg and Greenville, SC.
- Rose Associates is a sponsor for the upcoming Lake Norman Chamber of Commerce Healthcare Summit, on July 11th that will feature representatives from the healthcare industry.
