Presentation Transcript

1. healthcare & economic developmentVirginia chamber 2012 healthcare conferenceJune 7, 2012Robert w. mcclintockresearch director, vedp

2. Evolving story in economic development As healthcare issues have entered the mainstream of business … So too, are we recognizing an intersection between economic development and healthcare.
3. HealthCare: Economic impact Healthcare: Estimated at 17.9% of U.S. GDP (2010) $2.6 trillion -up from about 16% just 6 years ago In VA, 2011 economic impact estimated at $27.7 billion (for hospital and health systems only) Employment: Healthcare & healthcare support occupations together represent about 12 million U.S jobs (2010) (~ 8.4% of all national employment)
4. Virginia healthcare & related Employment
5. Virginia healthcare & related Employment Of the top 50 employers in Virginia, eight are hospital systems
6. If we’re about jobs….. Healthcare and support occupations reflect an importance surge in recent and projected growth 2006-2010: U.S. overall lost 7.5M jobs (-5.0%) Healthcare employment rose by 1.07M (+21%!) Going Forward: BLS projects 3.46M jobs in field by 2020 About 30% over the decade ending 2020 Double the growth rate of all occupations
7. Jobs…..and where to find them 13 of the 20 fastest growing occupations are in the healthcare or related fields The list includes practitioners and technical occupations as well as large office and administrative support occupations -- employed across many different industries and will gain jobs as the economy recovers Implications for education & workforce providers Also, real estate – changing means of service delivery & locations for facilities; outpatient and satellite needs; new product mix
8. Virginia Project Announcements 2010-2011 Economic development projects increasingly include names associated with Healthcare, Life Sciences, Medical and Related Industries. These types of projects are up significantly from the previous 2-year period.
9. Recent Virginia Project Announcements Defense Health Headquarters (DHHQ)
10. Economic development - site selection Although Virginia’s Overall Cost Profile is competitive Ranked #14 in employer’s share of family coverage health premiums (Kaiser Family Foundation) 93% of the U.S. Average Conversation moving beyond cost considerations Quality and Accessibility of Care beginning to show up in regional analyses by consultants/clients Not yet a “Top 5” consideration, but comes up as Quality of Life is being evaluated
11. Economic development - site selection Healthcare……….Stronger linkages to Talent Acquisition & Workforce Relates to skills, depth, educational attainment, insurance costs, innovation, productivity Ultimately connects to competiveness and sustainability of the operation Gets to operating bottom line Communities’ shifting awareness emerging in new marketing messages and promotion of regional wellness, outdoors initiatives & branding
12. Thanks!