NEW REPORT: HEALTH CARE INVESTMENT ACT ECONOMIC IMPACT EQUIVALENT TO 3 SUPER BOWLS
New economic analysis shows H.B. 2668 would infuse $2.3B to Arizona’s economy
Phoenix, AZ- A new economic impact report by Rounds Consulting Group, commissioned by the Health System Alliance of Arizona, reveals the sizeable positive fiscal impact of House Bill 2668, the Health Care Investment Act. The bill, sponsored by Representative Regina Cobb, establishes an outpatient assessment on hospitals that would generate $354M. These dollars would be used to draw down $1.1B in federal matching dollars to address the Medicaid reimbursement rate shortfall for hospitals, physicians and dentists. Due to this reimbursement gap, unpaid Medicaid costs currently total more than $1 billion each year. The study reports economic activity of the federal matching funds has a total economic impact of $2.3B.
“The Health Care Investment Act will provide much needed resources to our health care delivery system at no cost to the state or patients,” Health System Alliance of Arizona Executive Director Jennifer Carusetta said. “In addition, this legislation will actually provide an additional economic boost, equivalent to nearly twenty major business expansions in high wage industries or three annual Super Bowls. Hospitals are a key economic driver in the state providing $30 billion in total economic activity annually. I thank Representative Regina Cobb for her leadership on this critical issue which will ensure our health care system can keep up with growing demand.”
“Oftentimes the health care industry is not considered an economic engine, but this analysis tells the real story about the impact of the industry in Arizona,” President of Rounds Consulting Group Jim Rounds said. “The infusion of $1.1B into the state’s economy is significant, equating to more than 15,000 jobs, $955.4M in wages for a total economic impact of $2.3B. This type of investment not only allows the industry to grow and invest in critical areas, but better positions Arizona for any type of future market adjustment.”
According to the report, the economic activity creates a total of 15,538 jobs with $955.4M in wages and a total economic impact of $2.3B. The report notes the following economic activity comparisons of the proposed $1.1B in federal matching funds:
- 8 brand new hospitals
- 5,800 employee high wage headquarters relocating to Arizona
- Between 10 and 20 major business expansions or locations in high wage industries
- 3 Super Bowls each year
- 4,000 to 5,000 worker increase at a company such as Raytheon or Intel
“The healthcare industry in Arizona has been a tremendous economic driver in every corner of our state,” Representative Regina Cobb (LD5) said. “This analysis reveals the Health Care Investment Act is not only fiscally prudent but a wise economic investment for Arizona. I look forward to working with my colleagues in the legislature to ensure our hospitals and health care providers have the resources to continue to provide high quality and world class care.”
“Representative Cobb’s bill would restore some of the Medicaid funding that was cut during the recession and allows hospitals, doctors and dentists to get payments closer to the actual cost of providing care,” Arizona Hospital and Healthcare Association President and CEO Ann-Marie Alameddin said. “A Medicaid rate increase would allow hospitals to enhance healthcare services to better meet the needs of patients and their communities.”
The report is the second in a series about the economic impact of Arizona hospitals.
About the Health System Alliance of Arizona
The Health System Alliance of Arizona is an advocacy organization that represents the interests of large, integrated health systems across Arizona. Alliance membership includes Banner Health, Dignity Health, HonorHealth, Northern Arizona Healthcare and Tenet Healthcare. The members represented in the Alliance have more than 80 acute hospitals and medical facilities across the state and employ more than 50,000 Arizonans encompassing nearly all segments of our healthcare economy including physicians, nurses, emergency care, pharmacy, rehabilitation centers, academic medicine and other ancillary services.