Barton County Health Care Impact Report
A good local health care system may itself be part of the prescription for maintaining a healthy rural economy.
That was the bottom line from a study of the economic impact and economic potential of Barton County’s health care system produced by researchers at K-State Research and Extension. The results of the study were highlighted at a recent presentation kicking off the Hoisington Rural Health Works program.
Thanks to federal funding secured by Clara Barton Hospital, the Rural Health Works program will facilitate a wide-ranging public dialogue involving a cross section of community leaders about how to improve health care in the Hoisington area.
The study is part of a state-wide initiative called the Kansas Rural Health Works program sponsored by the Kansas Rural Health Options Project. As part of the program, a county-level analysis of the economic impacts and potential of the local health care sector on the economies of each of the state’s 97 most rural counties has been generated.
According to the report, the health care sector accounted for an estimated 7.5 percent of Barton County’s total employment, or about 1,577 jobs, in 2007, 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 2,664 jobs throughout the county economy. They go on to estimate that these same sectors accounted for more than $92,050,000 in total county income and about $42,933,000 in county retail sales annually.
Similarly, following completion of a local census of employers and local government, it was found that 284 people were directly employed providing health services to Hoisington residents in 2009. These jobs paid health care workers an estimated $17 million in wages and salaries. As a result, an additional 76 jobs and $4.1 million in income resources are generated indirectly and contributing substantially to the local economy and to Barton County.
Chuck Waters, President/C.E.O. of Clara Barton Hospital who released copies of the report, said 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,” he said. “We don’t realize how important health care is to the county’s economic wellbeing.”
That is exactly the point the reports are trying to get across, according to Dr. John Leatherman, agricultural economist at K-State’s Office of Local Government and co- author of the report. He points out that access to affordable quality local health care services is essential to attracting and retaining local businesses and retirees.
Further, health care has been among the fastest growing economic sectors for the past 30 years. Given demographic trends, prospects for continued growth are good, and rural communities will want to be in a position to capture some of that growth, he said.
“Research has shown time and again that local health care and education are two enormously important factors for economic development,” Leatherman said, “and both can be positively or negatively influenced by local action or inaction.” He said the local health care system has sometimes been the “tie-breaker” in industry location decisions and that retirees view quality local health care as a “must have” local service.
Given the rapidly changing economics of health care systems, rural communities need to become more proactive in building and maintaining a sustainable mix and level of services or risk losing local access and control, according to Dr. Chris Tilden, Senior Director of Health Policy and Data for the Office of Local and Rural Health at the Kansas Department of Health and Environment, and one of the co-sponsors of the project.
“The Rural Health Works program is intended to highlight the need for local organization and initiative to maintain rural health care systems,” he said. He likened the need for broad community involvement focused on local health care to trying to maintain the local school district or Main Street businesses. “Inattention and inactivity can place a rural community at risk. Maintaining local access to quality health care services in rural places requires organization, planning and community support,” Tilden said.
“We hope this can serve as a wake-up call,” said Chad Austin, Vice President of Government Relations for the Kansas Hospital Association and another partner in the project. He said rural health care systems have been evolving for a number of years in response to changing technology and economics. The challenges to maintaining access to quality local services is especially great for rural communities.
Austin cited smaller markets, thinner profit margins, older demographics and lower incomes in rural areas, the cyclic nature of the agricultural economy, and differences between urban and rural Medicare payment rates as among the challenges rural communities face. “Increasing awareness of the link between the vitality of the local health care system and the local economy is the first step,” he said.
To learn more about the Hoisington Rural Health Works program, contact Michelle Moshier, Executive Director, Clara Barton Hospital, at 653-5012 or E-mail: email@example.com.
Copies of the full report have been distributed and are available free of charge at a Kansas Rural Health Works Web site at: www.krhw.net.