Study: Health care, higher ed sustain local economy

The economic impact study was conducted by St. Louis-based consulting firm Development Strategies Inc. at the request of the Springfield Area Chamber of Commerce and the city of Springfield.

“It is clear these two major economic sectors play an above-average role in supporting the metro Springfield economy,” the report states.

Health care is the dominant of the two, creating an annual impact of $4.5 billion and 51,300 area jobs, both directly and indirectly.

Higher education produces a $900 million impact and 13,500 direct and indirect jobs.

Together, they spend more than $2.15 billion each year. About 57 percent of operating expenditures and 82 percent of payroll expenditures stays local and multiplies, as the money is re-spent by employees and businesses.

The analysis shows that health-care and higher-education spending ripples through the metropolitan area’s economy. They create $3.3 billion in additional economic activity and $1.1 billion in additional household income, according to the study.

The industries employ a combined 26,200 workers that, when added to about 38,500 that indirectly serve them, account for nearly one-fourth of the region’s work force.

Development Strategies Director Robert Lewis said yesterday that the health-care sector numbers are a conservative estimate because only St. John's Health System and CoxHealth provided information, though surveys were initially sent to all care providers in the area.

See SBJ’s Aug. 28 issue for more on the health-care and higher-education impact study.[[In-content Ad]]