OHIO STUDY Academic health industry adds to business volume

Roughly half of NEOUCOM's 2,043 alumni live and work in Ohio.
Results of a recent statewide study show that Ohio's seven medical schools and 60 affiliated teaching hospitals had a $20.7 billion impact on the state's business volume in 2002, just behind agri-business and tourism.
With a total Ohio business volume of about $500 billion last year, the academic health industry accounted for 4 percent of the state's total economic expansion, according to a statement from the Northeastern Ohio Universities College of Medicine in Rootstown.
As such, one in every $25 in the total economy was attributable to academic health care.
The economic study was conducted by Tripp Umbach Healthcare Consulting Inc. as a collaborative effort between Ohio's seven medical schools at Case Western Reserve University, Ohio State, Ohio University, Wright State University, the University of Cincinnati, the Medical College of Ohio and NEOUCOM. In addition, 60 affiliated Ohio teaching hospitals were included in the study.
NEOUCOM's impact
On a local level, the study showed NEOUCOM was responsible for 1,700 jobs and $2.3 million in total state tax revenue in 2002. The economic impact of the college equaled $79 million.
NEOUCOM is a community-based, state medical school offering a combined bachelor of science/medical degree program with Youngstown State University, Kent State University and the University of Akron. It also has established arrangements with Kent and Akron to offer graduate biomedical science and engineering education leading to graduate and doctorate degrees. It is associated with 17 hospitals.
Key findings
The report focused on the social and economic impact of Ohio's academic health centers on the state and geographic regions. Key findings include:
UBroken down, the $20.7 billion economic impact of the schools and affiliated teaching hospitals includes $9 billion in direct business volume impact and $11.7 billion in indirect impact through items such as job creation, attraction of national and international investment, business start-ups and spending and re-spending of income.
UMedical school graduates who remain in Ohio have a total economic impact on the state's economy of about $600 million annually. Locally, roughly half of the college's 2,043 alumni live and work in Ohio.
UOhio businesses in the wholesale, retail, tourism, service and manufacturing sectors benefit from the direct expenditures of health-institution staff, patients, visitors, medical students and others.
UThe health centers bring funds from outside through tuition and room-and-board costs; payment for services; research funding; endowments, contributions and gifts; conferences, seminars and symposiums; and out-of-state students, patients and visitors.
UIn 2002, more than 245,000 jobs in Ohio were related to academic health centers, meaning one of every 20 workers in the state was employed directly or indirectly by a medical school or teaching hospital.
UThe academic health centers accounted for $603 million in 2002 total state tax revenue.
UTotal uncompensated care provided by the 60 teaching hospitals equaled about $2 billion through care to the uninsured, forgiveness of debt and Medicare/Medicaid shortfalls.
UThe study estimates that 25 new Ohio companies, employing 3,000 Ohio residents, are directly related to research activities or investments made by the academic health centers.