The Economic Contributions of Oregon’s Physician Practices

1. The Economic Contributions of Oregon’s Physician Practices Jo Isgrigg, Ph.D. Oregon Healthcare Workforce Institute Rural Health Policy Summit June 11, 2010

2. Nearing 4 million Oregonians 32 of Oregon’s 36 counties are Primary Care Health Professional Shortage Areas 329 new physicians annually

3. Purpose of the Study: Inform investments in Oregon’s physician workforce • Education • Recruitment • Retention

4. Study Partners Oregon Healthcare Workforce Institute Oregon Medical Education Foundation Oregon Health & Science University Oregon Area Health Education Center Oregon Employment Department Oregon Medical Association

5. Methodology • 2008 State and county employment, income and economic data from OED and OEA • Survey of large retail stores’ to obtain data on pharmacy workers • 9,469 physicians with an Oregon practice address from June 2008 OMB database • IMPLAN model: input-output economic analysis

6. Analysis Included physician-related contributions to state and county: • Employment • Gross Domestic Product • State and local taxes paid through the contribution of physicians and physician-related employment

7. Total Employment Statewide, Oregon’s physician practices contributed 242,084 jobs to the state’s economy. Multnomah: 58,283 Washington: 19,216 Lane: 18,005 Marion: 15,496 Jackson: 12,338 Clackamas: 9,951 Deschutes: 9,330

8. Total Employment Contribution (jobs) per Physician Range: 12 – 48 total jobs per physician; State average: 25 jobs per physician

9. Percent of Physician-Contributed Jobs in Labor Market Statewide – 11% (Range 2% - 12%) Wasco – 12% Coos – 12% Jackson – 10% Multnomah – 10% Deschutes – 9% Lane – 9% Douglas – 9% Josephine – 9% Klamath – 9%

10. Gross Domestic Product (GDP) is a basic measure of overall economic output

11. Physician Contribution to GDP Statewide: $17.1 billion (11% of state’s GDP) Multnomah: $4.2 billion` Washington: $1.48 billion Lane: $1.17 billion Marion: $1.07 billion Clackamas: $868.2 million

12. Per Physician Contribution to County GDP

13. Contribution by physicians and physician-related employment to state and local taxes includes taxes paid on employee compensation, indirect business taxes, taxes paid by households, and taxes paid by corporations

14. Contribution to State and Local Taxes Statewide: $1.46 billion Multnomah: $261.7 million Washington: $124.4 million Lane: $86.6 million Marion: $77.79 million Clackamas: $57.7 million

15. State and Local Tax Contributions per Physician (2008$)

16. Physicians create jobs. • Investments in the physician workforce payoff. • The absence or loss of a physician has an effect on the county economy. • Health care access and a healthy local economy are outcomes of the local health care infrastructure. • Physician recruitment and retention, then, are the obligation of the community.

17. Health and economic wellness

18. Health and economic wellness

19. Community

20. We welcome your feedback Thank you! Contact: joi@oregonhwi.org www.oregonhwi.org