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Harold M. Maurer, M.D.  Glenn Fosdick |
That’s an average of about $4.1 million a day or $876.55 for every man, woman and child in the state.
The two health care organizations supported 17,100 jobs and attracted $325 million in new dollars to the state. And, for every dollar invested by the state, UNMC and the hospital returns $14.
The combined annual economic impact of UNMC and its partner was determined by Development Research Partners, a Colorado firm with expertise in economic research impact studies. The figures were calculated using appropriate Department of Commerce multipliers.
“The report verifies what we’ve known for a long time — that together UNMC and The Nebraska Medical Center are profoundly impacting the health of the state’s economy and its citizens,” said UNMC Chancellor Harold M. Maurer, M.D. “We’re on a trajectory to become a world-class academic health science center.”
Glenn Fosdick, president and CEO of The Nebraska Medical Center, agrees. “In the nine years since The Nebraska Medical Center was created, our partnership with UNMC has flourished. This report confirms that our two organizations have created a win-win environment for the entire state,” he said.
The group analyzed 2004-05 data for its report, looking at local purchasing patterns in four major spending categories: business operations, which included local spending, payroll, employment and research activity; student spending; visitor spending; and construction.
The direct impact of UNMC and The Nebraska Medical Center is $724 million. That figure is calculated by totaling direct local spending and payroll by the combined institutions. The indirect impact of the two organizations is $784.6 million. Indirect impact is the ripple effect on the economy after direct dollars are spent and then used by other companies to pay their employees and make purchases.
Here’s an insight into the different categories.
Employees
Overall, UNMC and The Nebraska Medical Center employ 9,000 people — making the combined enterprise the third largest public employer in the state and the fifth largest overall employer. As a result, the medical center has a direct economic impact of more than $628.3 million and an indirect impact of $688.6 million through its payroll, purchases and on-going business operations.
Research
The U.S. Department of Commerce Bureau of Economic Analysis estimates that every $1 million of research funding creates 31 new jobs. As a result, UNMC’s research enterprise supports more than 2,400 jobs. That number will rise as the medical center builds a second research tower adjacent to the Durham Research Center and aspires to achieve $200 million in research funding over the next five
years.
The new research jobs created by UNMC are especially attractive to the state, because the average researcher salary of $60,000 is nearly double the average Nebraska salary of $31,600. The overall average salary at UNMC is $50,700, while the average salary at The Nebraska Medical Center is $38,900 — again, both considerably higher than the state average.
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Construction projects at the two institutions boosted Nebraska’s economy by $97.1 million in 2005, including $45.3 million in direct impact and $51.8 million in indirect impact. UNMC has spent an average of $24.8 million on construction projects each year since 2000 to provide outstanding research and educational environments. The importance of private philanthropy in helping UNMC achieve its goals cannot be overstated. Almost exclusively, private donors funded the $77 million Durham Research Center, the $52.7 million Sorrell Center, the hospital’s $57.3 million Hixson-Lied Center and the $74 million research facility under construction.
Education
As the state’s only public academic health science center, UNMC has more than 3,000 students on its four campuses (Lincoln, Kearney, Scottsbluff and Omaha). Student spending, through housing and student living expenses, has an annual direct economic impact of $46.2 million and an indirect impact of $40 million to the state.
Faculty members are proud that about one-half of all the health care professionals practicing in the state — physicians, pharmacists, dentists, allied health professionals and bachelor’s and master’s prepared nurses — were educated at UNMC. Each enters the region’s workforce and stimulates the economy. For example, one recent study indicates that one practicing dentist brings $1.3 million in activity to a community’s economy.
UNMC now is poised to create a College of Public Health, begin construction on a second 10-level research tower and teach future physicians in the Michael F. Sorrell Center for Heath Science Education, which is under construction. Each has a significant economic impact to the state.
Initial estimates indicate that the new College of Public Health could bring in $30 million in new funds within five years, resulting in a $67.5 million boon to the state’s economy and 700 to 750 new jobs.
Patient care
Visitors to the medical center campus generate another economic return to the state through the purchase of $4.6 million in food, retail items, entertainment and lodging. The indirect impact of these purchases is $4.2 million.
Patients from all over the world seek care from The Nebraska Medical Center, home to one of the most reputable and well-known organ transplant programs and respected cancer care departments in the country.
In 2005, the hospital experienced more than 400,000 patient visits, one-fourth of which were from outside Nebraska. In addition to patients and their families, others visit campus for alumni events, student tours and leadership meetings.
What others are saying:
“The University of Nebraska and the University of Nebraska Medical Center continue to provide valuable assistance to this department and the state’s economic development efforts. Their value cannot be overstated. Access to technology and a supply of highly trained employees, especially to today’s rapidly growing knowledge-based industries, are key factors when companies look at Nebraska for new locations. Nebraska’s university, state, and community college systems, have always been key players and major assets to the future growth of the state’s economy.”
Richard Baier, director, Nebraska Department of Economic Development
“The positive impact on our city and state of the University of Nebraska Medical Center and The Nebraska Medical Center cannot be overstated. In addition to the significant, ongoing capital investment by both organizations, including a new research tower in Midtown and a new hospital in Bellevue, the important research conducted at UNMC generates numerous high-paying jobs and attracts leading researchers and other top-notch health professionals to work and live in Greater Omaha.”
David G. Brown, president and CEO, Greater Omaha Chamber of Commerce
“Since 2001, the health care sector has created 1.7 million new jobs nationwide. As one of the largest segments of our nation’s economy, and one of the fastest growing segments of Nebraska’s economy, health care will continue to generate jobs and fuel economic growth. UNMC and The Nebraska Medical Center have been leaders in growth and effective delivery of services for the health care industry in our state.”
Barry L. Kennedy, president, Nebraska Chamber of Commerce & Industry