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Thomasville, NC An economic impact analysis commissioned by Thomasville Medical Center and completed by the Office of Business and Economics Research (OBER) at The University of North Carolina at Greensboro in August reveals that the medical center has a total impact of $78.86 million in Davidson County.

Findings reveal that Thomasville is a major employer and creator of jobs, an economic pillar in the community and a provider of significant community health benefits

Thomasville Medical Center is a not-for-profit hospital affiliated with Novant Health and Forsyth Medical Center.

Economic impact was measured from three sources using 2003 data: hospital operations, clinic operations and spending by out-of-county patient visitors. The medical centers total impact includes $54.8 million in direct economic impact through goods and services purchased locally and wages and benefits paid to employees. Total indirect impact to the county economy is $14.2 million and includes the impact on businesses that directly derive revenue from the hospital as well as businesses that exist in part because a hospital is present in the community such as physician offices, pharmacies, nursing homes, equipment suppliers, restaurants, motels and florists. Finally $9.8 million in what is known as induced effects results by spending and employment by local businesses that serve Thomasville employees.

The hospitals programs, services and staff are known and respected in the community for providing exceptional medical care, said Gabrielle Causby, president of Thomasville Medical Center. What has not been widely known or measured is the dramatic impact the hospital has on the social and economic health of this rural region that has experienced job losses in other sectors of the economy.

Thomasville Medical Center began planning for the economic impact analysis in late 2003 and chose UNCG in April, 2004 to conduct the analysis.

Economic Impact
The total impact of hospital operations was $64.34 million in Davidson County. Of that, $34.59 million was in the city of Thomasville. The total impact of TMC clinic operations to Davidson County was $13.44 million. Out-of-county visitors accounted for $1.08 million. Taken together, each direct dollar spent by Thomasville Medical Center generates a total of $1.44 in the regions economy.

Employment
The hospital provides 402 direct jobs in the economy, ranking 7th among private employers in Davidson County. July labor trends released from the North Carolina Employment Security Commission show a decrease in unemployment from 8.2% to 5.8% from July 2003 to July 2004 in the county. Healthcare related positions dominate the list of the 10 fastest growing occupations in the county and include registered nurses, nursing aides and home health aides.

An additional 331 jobs are created in the county as a result of the hospitals ripple effect throughout the region. A total of 733 jobs in Davidson County and 394 within the city of Thomasville are generated by TMC.

In addition, direct jobs resulting from clinic operations and out-of-county patient visitor spending totaled 88.6, creating an additional 76.7 jobs in the county for a total of 165.3 jobs.

In all, TMC, its affiliated clinics and all operations created a total of 898 jobs in the county. Put another way, for every 10 Thomasville Medical Center jobs, more than 18 total jobs exist in the county economy.

Construction
Thomasville Medical Center will be adding a high-tech Magnetic Resonance Imaging Scanner and expanding its emergency room to meet the demand for its services and to expand its capabilities.

Charity Care
During 2003, the hospital contributed $588,000 in charity care for the indigent and absorbed an additional $5.3 million in write-offs from patients who struggled to pay their bills.

Community Health Needs
The hospital also contributes funds to support community health services such as educational outreach, screenings, support groups and other programs to address the social needs of the community. Examples include the TMC Parish Nurse Program, StrokeSense and the hospitals support of More at Four.

"In rural communities, hospitals rank among the top three largest employers and more than one third are the top employers in their community," commented Causby. "Thomasville offers a stable source of employment even in times of economic stress, provides high-tech job opportunities for young people who might otherwise leave the community and attracts physicians, pharmacists and other businesses, who in the absence of the hospital, might not have chosen to locate here."

By using the multipliers, you can forecast the impact the medical centers growth would have in the economy. As an example, an additional 3% growth to Thomasville Medical Center would generate $2.4 million in the economy.

According to the American Hospital Association, hospitals nationwide employ nearly 5 million people, rank second as a source of private sector jobs, directly or indirectly support one of every nine U.S. jobs contributing $1.3 trillion to the economy. Hospitals make up the largest component of the health services and supply sector of the economy, which accounts for 15% of the Gross Domestic Product (GDP). North Carolina hospitals employ 9% of the total non-farm employment in the state and contribute more than $27 billion to the economy.

"Changing demographics and the emergence of 77 million baby boomers approaching retirement implies that healthcare will be a major contributor to economic development for the region for many years to come," Causby explained. "Thomasville will continue to play a key role in the region's revitalization as we continue to grow, create jobs and contribute to the better health of the community. That does not come without its challenges as we try to meet the needs of an aging population and keep up with evolving medical technology. Economic development agencies, business groups and local governments are recognizing that hospitals and healthcare providers are key partners in generating new economic opportunities and that we all need to work together and support each other," she emphasized.