The Worth of Health Care By Gerald A. Doeksen Regents Professor and Director National Center for Rural Health Works Presentation at Virginia College of Osteopathic Medicine on December 17, 2007 H W Rural Health Works R National Center for

I.To measure the feasibility of a medical practice on a rural community II.To measure the economic contribution of hospital on rural economy III.To measure the economic impact of medical school on State’s economy Objectives:

Measuring the feasibility of a medical practice

Annual Primary Care Physician Office Visits Generated in the Example Medical Service Area

Primary Care Physician Office Visits and Physician Shortages for Different Local Usage by Residents in the Example Medical Service Area

Estimating the economic impact of a rural physician on local economy

Physician Office Impacts Employment 4 Wages, Salaries and Benefits$287,000 Total Clinic Revenue$394,000

Physician Impact on Local Hospital Inpatient & Outpatient Visits, Employment, and Wages, Salaries & Benefits No. of Inpatient Visits 134 Inpatient Revenue$457,000 Outpatient Revenue$295,000 Total Hospital Revenue$752,000 Employment 13 Wages, Salaries & Benefits$435,000

Summary of Physician Impact From Clinic and Hospital Activities

Estimate Secondary Impacts Households Industry Basic Services Goods & $ Inputs Products Inputs $$ $ $ Services $$ Labor Community Economic System

IN SUMMARY ONE RURAL PHYSICIAN GENERATES: 23 Jobs 23 Jobs $899,000 Wages, Salaries & Benefits $899,000 Wages, Salaries & Benefits $1,533,000 Total Revenue THIS IS A HUGE IMPACT

Estimating the economic impact health sector on local economy

Community Economic System Households Industry Basic Services Goods & $ Inputs Products Inputs $$ $ $ Services $$ Labor

- Use to gain community support - Use to gain market share

Measuring the economic impact of a medical school on a state’s economy

Impact consists of: Operational activities Capital projects Student spending Visitor Spending

Measuring the economic impact of a typical medical class

Economic Impact Applications Completed: 1. 1.Impact of Health Sector on Local Economy 2. 2.Impact of Hospital on Local Economy 3. 3.Impact of Hospital on State Economy 4. 4.Impact of Medicaid Program on State Economy 5. 5.Impact of Construction of New Hospital on Economy 6. 6.Impact of Clinic on Local Economy 7. 7.Impact of Telemedicine on Local Economy 8. 8.Impact of Pharmacy on Local Economy 9. 9.Impact of Medical School on State Economy

Summary of Economic Impact Applications Model can measure economic impact at: Zip Code Level County Level Regional Level State Level National Level

National Rural Health Works Website: Oklahoma Rural Health Works Website: H W Rural Health Works R National Center for