Kansas Rural Health Works: The Economic Contribution of Health Care John Leatherman Department of Agricultural Economics K-State Research and Extension

Kansas Rural Health Works National program to help foster sustainable rural health care systems –Active programs in states –Supported by Office of Rural Health Policy & Medicare’s Rural Hospital Flexibility (FLEX) program –Sponsored in Kansas by the Kansas Rural Health Options Project –Partnership between KDHE Bureau of Local and Rural Health, KHA, K-State

KRHW Program Objectives Help foster sustainable rural community health care system Increase awareness of health care importance Assess citizens’ perceptions of available health care services Look for health care needs and services not currently met

KRHW Program Components Local health care economic impact reports Community engagement process –Impact analysis to capture community attention; local health care inventory; data analysis and assessment; market analysis and survey; and feasibility studies (outside of the program) Participating communities to date –Sherman County; Republic County; Oakley tri- county; Stafford County; Cloud County; Osborne County; Trego County; Rice County; Wilson County; Columbus; Hoisington; Sheridan County

Importance of Health Care Sector Health services and rural development –Major U.S. growth sector 9.1% GDP in 1980 ($1,102/person); 16.2% in 2008 ($7,681/person); projected 19.3% by ($13,387/person) Health services employment up 70% from and 152% since 1980 Represents 10%-15% employment in most rural counties –Business location concern Quality of life; productive workforce; ‘tie-breaker’ location factor –Retiree location factor 60% called quality health care “must have”

Kansas Economy, 2008

Healthcare Highlighted

Share of Direct Employment

Share of Total Income

Economic Contribution Direct contribution: the value of sales, income, employment in the sector Indirect impacts –Business-to-business transactions –Spending labor income (wages, proprietor) Each $ attracted/retained creates a “multiplier” effect

Economic Multipliers

Employment Contribution

Income Contribution

Retail & Public Finance

News Release (November 3, 2006) Study Shows Health Care Impact Edwards County, Kan. - A good local health care system may itself be part of the prescription for maintaining a healthy rural economy. According to the report, the health care sector accounted for an estimated 9.0 percent of Edwards County’s total employment, or about 160 jobs, in 2003, the most recent year for which information was available. Further, the study’s authors calculated economic multipliers for seven health care sectors and estimated that health care directly and indirectly accounted for 234 jobs throughout the county economy. They go on to estimate that these same sectors accounted for more than $4,925,000 in total county income and about $938,000 in county retail sales. YOUR NAME, YOUR TITLE of YOUR FACILITY, who released copies of the report, said (s)he was somewhat surprised by the overall scale of the existing activity in the county. “I think we tend to take our local health services for granted, just a little,” (s)he said. “We don’t realize how important health care is to the county’s economic wellbeing.”

Meeting Handout The Economic Impact of the Health Care Sector In Ottawa County, Kansas The organization and delivery of health care services have undergone rapid evolution in recent years. For many Americans, the cost of services and access to care are important issues. This certainly is true in many rural areas where communities have struggled to maintain affordable, quality health care systems. The purpose of this project is to provide information resources that may be used to communicate to community leaders and concerned citizens the relative importance of health care to the local economy. In an effort to generate useful information resources for community and health care leaders, the YOUR FACILITY has partnered with the Kansas Rural Health Options Project (KRHOP) and K-State Research and Extension, to develop this report as a component of the Kansas Rural Health Works program. KRHOP is a partnership of the Office of Local and Rural Health at the Kansas Department of Health and Environment, the Kansas Hospital Association, the Kansas Board of Emergency Medical Services and the Kansas Medical Society. KRHOP is dedicated to assuring quality health care delivery in rural Kansas through the promotion of collaborative systems of care.

The Importance of the Health Care Sector to Decatur County XYZ Hospital Kansas Rural Health Options Project K-State Research and Extension

PowerPoint Presentation

KRHW Community Engagement Strengthen and enhance the sustainability of rural health care systems Community awareness Information product development Encourage and allow issues to emerge Strategize about local action

KRHW Community Engagement Community based, not driven by hospital, state or university No pre-defined “agenda” to pursue Local people solving local problems Community provides energy and commitment, with input from health care providers Public represented by community leaders

Community Steering Meetings 5 meetings over 3 months One hour working meetings over lunch Emphasize development of information products Summary meeting at conclusion If issues emerge, work on a community action plan (they always do) Follow up as needed

Community Issues/Priorities Big Issue –Hospital finance and organization Multiple general issues –Community information/education Acute issues –Adolescent suicide prevention –Teenage pregnancy –Teen binge drinking –Labor force substance abuse

Closing Thoughts KRHW is an opportunity to promote local health care awareness and planning, not simply PR Contact: –John Leatherman – KRHW: