Health care providers make an obvious contribution to the well-being of a community by delivering the essential medical services that keep the population healthy and productive. But they also have a significant direct and indirect economic impact.
According to a 2011 study by the Oregon Healthcare Workforce Institute, the total value-added contribution to the state’s gross domestic product by the health care workforce was nearly $23.3 billion (14 percent of Oregon’s GDP) in 2008. In Crook County, the contribution to area GDP was $31.4 million.
Health care organizations provide employment opportunities ranging from entry-level jobs to highly specialized technical positions. It is a growth industry (the general population is both increasing and aging, and more people are living with chronic health conditions), and most health care occupations do not lend themselves well to outsourcing or automation. The Bureau of Labor Statistics recently reported that the national health care sector added more than 92,000 jobs in the first two months of 2012. Health care has now shown 103 consecutive months of job growth.
Health care enterprises – and their employees – support the local economy by purchasing goods and services from other area businesses. This creates a ripple effect that leads to increased growth in other sectors, as well.
Health care workers also pay taxes that strengthen the ability of state and local governments to fund necessary public services. Oregon’s health care workforce contributed an estimated $1.89 billion in state and local taxes in 2008. In Crook County, the estimated tax contribution related to health care employment was $1.83 million.
A well-regarded local health care system further contributes to growth by enabling the community to attract other new businesses, investment and residents. The availability of good health care makes an important contribution to quality of life.
The health care sector, however, is experiencing unprecedented regulatory change and uncertainty. For example, the Federal Patient Protection and Affordable Care Act would implement a massive revision of the whole country’s healthcare system. The act is currently being scrutinized by the U.S. Supreme Court and there is no way to predict what, if anything, from the law will survive.
Here in Oregon, the legislature recently passed comprehensive reforms to the Oregon Health Plan, the state’s Medicaid system. These decisions will define the future of healthcare and the delivery of health services.
Additionally, the health care sector is facing employee shortages nationwide. A fall 2011 study by the Oregon Employment Department found that the health care industry had more job vacancies than any other industry – roughly 19 percent of all vacancies statewide. According to the Crook County Health Department’s 2011-12 annual plan, the county faces a general shortage of health care providers.
Considering how vital the health care sector is to our quality of life and to the local economy, the Prineville business community cannot simply sit back and hope the area is able to attract and retain quality health care providers.
Businesses are regularly encouraged to think about health care in terms of health benefits packages and encouraging employees to participate in health and wellness programs. But business owners also need to look beyond their own organizations. As community members, we all have an interest in ensuring that Prineville is able to offer high-performing health services. We need to support this sector, and we can do so in several ways.
First and most specifically, we can work to make sure that health care positions in our area do not remain vacant. Businesses can become actively involved in the provider recruiting process. Rimrock Health Alliance has partnered with a wide range of businesses and organizations in its community-based recruitment efforts. Last year, the nonprofit organization helped recruit 11 health care providers – from family practice physicians to pharmacists – to Crook County.
Businesses can also help with capital investment when new facilities or upgrades to existing facilities and equipment are needed. Surveys show that the quality of facilities is an influential factor in the recruitment and retention of health care providers.
We can also engage in broader efforts to strengthen local providers’ ability to recruit and retain qualified employees. The things that make a community attractive to potential health care workers are generally the same things that make a community attractive to anyone else. So whatever we can do to improve the quality of life in Prineville – from investing in infrastructure to supporting education – will indirectly support recruitment.
Let’s work together to make sure our community has the health resources it needs.
Jeffrey M. Wilson is a partner in the Prineville office of Miller Nash LLP. His practice focuses on land use law, real estate and business transactions. Wilson is also on the board of directors for Pioneer Memorial Hospital.
Sharon Vail is executive director of Rimrock Health Alliance, a nonprofit organization created to increase access to and strengthen health resources in Crook County.
