Analysis of the Financial Conditions of Health Care Institutions in the Appalachian Region and their Economic Impacts
This study will provide information on the service offerings of health care providers in all Appalachian counties, the financial condition of health care providers, and the impact of health care providers on the Appalachian economy.
Information will be gathered and evaluated in a four-step process. First, we will gather information on hospitals, hospital services, nursing homes, physicians, and other health care providers in the 406 counties of Appalachia. Second, we will examine the financial sustainability of nursing homes and hospitals. Third, we will use input-output multipliers to estimate the ripple effect that health care providers have on the Appalachian economy. Fourth, we examine ten Appalachian counties that have lost a hospital during the period 1987-1996. By examining historical data on the loss of health care providers and subsequent changes in the local economy, we can evaluate whether traditional input-output multipliers are useful in predicting the economic impact of health care institutions on Appalachian counties.
The results of the research will be quantitative. We will present the number of services available by county, the percentage growth of physicians and other providers by county, and a list of counties that risk losing hospitals and/or nursing homes. We will also estimate the impact of the health care industry on county-level employment and income using both traditional input-output estimates as well estimates based on historical experience. The quantitative data on the economic impact of health care institutions will be supplemented with qualitative information we obtain from discussions with leaders in counties that have lost hospitals.
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