Detailed Economic Impact of RPAP

Economic Impact of a Rural Physician Practice

The main contributor is the impact of the physician on the jobs and services. There are various figures that describe this economic impact for a year of rural practice. These vary by degree of rurality and primary care, and by what is included in the community impact. This table includes only the average 10 students a year staying an average retention rate, calculated over time since the RPAP students graduated from residency programs.

Reference	Economics per year	Impact since 1971 (billions of dollars)	Figure includes
Doeksen and Miller	$343,706	0.73	Outpatient, rural FP
Ok State Manpower	$954,000	2	Outpatient, pharmacy, nursing home, hospital, rural doctor
Univ of MN Rural Center	$1,000,000	2.2	Outpatient and inpatient
Merritt Hawkins	$1.53 million	3.2	Outpatient and inpatient for primary care
Univ of KY Rural Center	$2 million	4.1	Outpatient and inpatient averaging 4 - 5 inpatients

The impact of the RPAP program costing $800,000 x 31 years or $25 million dollars to the state has resulted in $2.2 billion in economic impact in Greater Minnesota so far during this time (using $1 million per year figure and no adjustments on either side for inflation).

Other contributors since inception in 1971 - constant values since same numbers of students and same factors

Living expenses in rural Minnesota of students - $30 million in stipends spent by students (n=40/yr x $15,000 stipend x 1.6 multiplier x 31 yr)
Community Resources Saved - $12 million in community resources saved in recruitment and orientation costs for students that return to their RPAP sites to practice after graduation from residency (2 docs per year x 28 yr x 200,000 - a conservative figure as more dollars saved with retention in the state, etc.)
Student Contribution to Practice Economics $80 million - $130 million ($40,000 - $70,000 per student x 40 per yr x 1.6 multip x 31yrs) per Verby figures

Actually any one of these figures alone is enough to overcome the state's initial $25 million dollar investment.

Figures do not include potential savings of retaining students in the state of Minnesota, the impact of RPAP students on rural areas of other states, or the impact of RPAP students on urban areas in Minnesota.

References

Excel file with details model/medsch/by the numbers.XLS

Doeksen and Miller Each rural physician generates $343,706 worth of income and 17.8 jobs. Rural Physicians Make Good Economic Sense, Gerald A.Doeksen PhD and Deborah A Miller MS, Paper and Presentation to National Rural Health Care Associations (now NRHA) May 6-9, 1987

25+ Years Oklahoma Physician Manpower Training Commission from Center for Health Policy Research, Center for Health Sciences, 2345 Southwest Blvd Tulsa, OK 74107

University of Minnesota Rural Center

Merritt Hawkins study http://www.advisory.com/members/basecontent.asp?contentid=26554&collectionid=595&program=5&contentarea=125886&eprefid=10

University of Kentucky Rural Center