The Economic Impact of Health Care in Michigan

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TheEconomic Impactof Health Care inMichigan

• Third Edition
• June 2006
• www.economicimpact.org

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About this Report

• This 2006 study demonstrates how
• Michigans health care sector is the largest
  single employer in the state.
• Michigans health care sector will continue to
  generate significant new job opportunities in the
  future.
• Underfunded government health care programs
  stifle job growth and threaten the ability to
  care for Michigans aging population and
  skyrocketing Medicaid patient population.

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About this Report (continued)

• This study presents statewide, county and
  regional economic impact data showing
• The total number of direct health care jobs in
  Michigan
• The wages, salaries and benefits paid to Michigan
  citizens working directly in health care
• The total number of indirect and induced health
  care jobs in Michigan
• The wages, salaries and benefits paid to Michigan
  citizens working in indirect and induced health
  care jobs
• The taxes paid by health care workers and their
  employers
• New in this years study- information on how to
  better academically pursue a health care career
  in Michigan

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Executive Summary Key Findings

• About 10 of every 100 Michigan jobs are directly
  in health care.
• Nearly 16 of every 100 Michigan jobs are
  indirectly related to or induced by health care.
• Direct, indirect and induced health care jobs
  total more than 736,700 in Michigan.
• Wages, salaries and benefits for direct, indirect
  and induced health care jobs total nearly 31.6
  billion in Michigan.
• 57 of Michigans 83 counties have more than 1,000
  health care jobs each.

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Michigans Direct Health Care Jobs

• Total direct health care employment exceeds
  Michigans agricultural, educational and
  automotivemanufacturing sectors more than
  478,000 jobs strong.
• Michigans direct health care workers earn about
  22.6 billion a year in wages, salaries and
  benefits.
• U.S. Bureau of Labor statistics show that each
  health care job contributes about 55,000 to the
  local communitys economy.

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Indirect Induced Jobs

• More than 258,300 Michigan citizens work in jobs
  that are indirectly related to health care or
  induced by the health care sector.
• Michigans indirect and induced health care
  workers earn about 9 billion a year in wages,
  salaries and benefits.

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Taxes Paid by Michigan Health Care Workers
Employers

• Michigan health care workers and their employers
  pay nearly 8.6 billion annually in taxes.
• State and federal taxes paid include Social
  Security, income, motor vehicle, sales, real
  property, personal property, corporate and more.
• Health care workers and their employers pay more
  than 10 million in taxes in 56 counties and more
  than 100 million in taxes in 16 counties.

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Taxes from Michigan Health Care Jobs Top 10
Michigan Counties
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Michigan Counties with at Least 1,000 Health Care
Jobs

• 57 have more than 1,000 total health care jobs.
• 20 have more than 5,000 total health care jobs.
• 14 have more than 10,000 total health care jobs.

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Michigan Counties with the Most Direct Health
Care Jobs
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Health Care Employment by Region
Once income has flowed out of a region, it cannot
generate any additional multiplier effects in the
original region. Adding the numbers in the table
above will result in different statewide totals
due to the change in boundaries used in the
economic model.
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Largest Single Employer
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Types of Health Care Jobs
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More Health Care Workers Needed

• Michigans population is aging, and their demand
  for access to health care services continues to
  increase.
• Widespread and record unemployment has caused the
  states Medicaid roles to skyrocket to roughly
  1.5 million people and increase the ranks of the
  uninsured to nearly 1.1 million.
• From a workforce perspective, these demands are
  creating and sustaining significant job
  opportunities for Michigan residents.

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Health Care Job Stability

• Health care jobs tend to provide high salaries
  and quality benefits.
• Health care is more stable and less cyclical,
  stabilizing local economies.
• Michigans health care sector continues to grow.

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Current FutureHealth Care Jobs

• An October 2004 study by the Michigan Dept. of
  Labor
• Economic Growth
• projects the state will need to fill more than
  100,000 professional and technical health care
  jobs by 2015.
• concludes health care workforce shortages are
  evident across the state, especially in rural
  areas.
• determines there are employment opportunities for
  all health care professional and technical
  occupations in Michigan, not just in nursing.
• anticipates that opportunities for growing the
  workforce are likely to continue for the next 20
  years.

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Michigans Medicaid Program

• One in every seven, or roughly 1.5 million,
  Michigan residents rely on Medicaid.
• 777,725 Michigan children receive their health
  care from Medicaid.
• Medicaid covers more than one-third of all births
  in Michigan.
• Two-thirds of Michigan nursing home patients are
  covered by Medicaid.
• A 100 million cut in Medicaid spending would
  result in the loss of an additional 131 million
  in matching funds from the federal government.
  This funding supports thousands of quality jobs.

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The Economic Impact of Health Care in Michigan

• Health care is Michigans largest employer
  providing wages, salaries and benefits through
  thousands of good-paying jobs.
• It provides billions of dollars annually in tax
  revenue and economic stimulus.
• Health care jobs stabilize local economies.
• The state will need to fill more than 100,000
  health care jobs by 2015.

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For More Information
Visit www.EconomicImpact.org
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About the IMPLAN Data

• IMPLAN was founded in 1993 by two former
  University of Minnesota researchers.
• It is an economic impact assessment modeling
  system to estimate the impacts of economic
  activities and changes in states, counties and
  local communities.
• The data used are compiled from many sources, but
  mostly from the federal government such as the
• ? U.S. Bureau of Economic Analysis
• ? U.S. Bureau of Labor
• ? U.S. Census Bureau