1. Maricopa Integrated Health System: Economic Impact Analysis, 2015-43 September 24, 2014

2. Introduction Seidman = consultancy arm of W. P. Carey School of Business, ASU Commissioned by MIHS to implement 3 analyses: – Economic Impact of MIHS in 2013 – Economic Impact of MIHS, 2015 - 2043 – Social ROI analysis Today’s presentation focuses on the 2015 - 2043 analysis

3. Typology of Economic Impact Analysis Count Gross Partial Gross Macroeconomic Gross Count Net Partial Net Macroeconomic Net Level of Sophistication Degree of Completeness

4. Seidman’s Method Count Gross Partial Gross Macroeconomic Gross Count Net Partial Net Macroeconomic Net Level of Sophistication Degree of Completeness REMI Model: Partial Gross: Positive impacts of MIHS employment and supplier purchases alone Partial Net: Also considers negative implications (non-federal financing and property tax debt repayments)

5. CY2015-43 Partial Gross Analysis Inputs Employment Number of Staff (FTE) 3,906 in 2015; 4,400 from mid-2018 Total Compensation (Millions 2013 $) $298.6 M. rising to $319.2 M. Non-Labor Expenditure (Millions 2013 $) Current MIHS Systems $207.22015 onwards New CHCs $11.2Mid-2018 onwards New FHC, Dental, & Retail Pharmacy $2.0Mid-2018 onwards Non-Residential CAPEX $627.42015 to Mid-2019 Equipment CAPEX $307.62015 to Mid-2019

6. CY2015-43 Partial Gross Analysis: AZ Employment Total Employment Total Private Non-Farm Employment 12,221 to 15,747 11,380 to 14,292 Job Years per Year Sectoral Split: Total Private Non-Farm Employment Ratio of 1 MIHS job year : 2.1 PNFE job years

7. $47.1 B. Gross State Product $30.4 B. Real Disposable Personal Income $3.4 B. State Tax Revenue $45.5 B. Gross State Product $28.5 B. Real Disposable Personal Income $3.1 B. State Tax Revenue CY2015-43 Partial Gross Analysis: Other Measures

8. CY2015-43 Partial Net Analysis Inputs Non-Labor Expenditure (Millions 2013 $) Current MIHS Systems $207.22015 onwards New CHCs $11.2Mid-2018 onwards New FHC, Dental, & Retail Pharmacy $2.0Mid-2018 onwards Non-Residential CAPEX $627.42015 to Mid-2019 Equipment CAPEX $307.62015 to Mid-2019 Finance Federal Funds 45% Debt Repayment $1.4 B. Employment Number of Staff (FTE) 3,906 in 2015; 4,400 from mid-2018 Total Compensation (Millions 2013 $) $298.6 M. rising to $319.2 M.

9. CY2015-43 Partial Net Analysis: AZ Employment Total Employment Total Private Non-Farm Employment 9,160 to 12,910 8,527 to 11,718 Job Years per Year Sectoral Split: Total Private Non-Farm Employment Ratio of 1 MIHS job year : 1.4 PNFE job years

10. $36.8 B. Gross State Product $24.5 B. Real Disposable Personal Income $2.5 B. State Tax Revenue $35.5 B. Gross State Product $23.0 B. Real Disposable Personal Income $2.3 B. State Tax Revenue CY2015-43 Partial Net Analysis: Other Measures

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