SEATTLE - (Business Wire) The results of a first-of-its-kind study were released today identifying a $1.2 billion total impact on Washington’s economy by the community health center system within Washington. The total impact was determined by calculating the dollars spent directly on goods, services and jobs in combination with the “downstream effect” - the additional jobs and services that are generated through spending. The study findings validate the economic importance and healthcare necessity for preserving the community health center system in Washington.
“Our findings demonstrated that the community health center system in Washington State provides tangible, measurable and significant economic contributions for residents. The system brings jobs and money into local communities, creating its own year-round stimulus package for rural or underserved areas,” said Joan DaVanzo, CEO Dobson DaVanzo & Associates.
Washington’s community health center system is a powerful economic engine, directly distributing $683 million dollars into local communities and employing 5,100 people. The efficiency and productivity of the system stimulates local economies by the rate of $1.77 for every $1 spent. The study finds that these dollars are imported into communities through federal grants and public healthcare programs.
“We are pleased the study clearly validates, in economic terms, the importance of Washington’s community health centers. It lays out a dollar-based rationale for the value of the critical public services provided by the community health center system,” said Paul Gallese, CEO, Community Health Network of Washington, one of the study’s sponsors. “Even so, many of the tremendous clinical, health, and societal contributions are beyond our ability to completely appreciate. It is difficult to calculate the true value of an enriched quality of life.”
A strong economic force, Washington’s community health center system combined direct and downstream effect creates approximately 8,500 jobs and generates a tax contribution of $176 Million. These are revenues, jobs and services that could not easily be replaced if funding was reduced or eliminated.
“As an executive director for over twenty years, I have seen first-hand the dramatic influence community health centers have on our communities. The economic and health benefits to a large portion of Washington residents cannot be overstated. The study shows, in clear terms, that a community health center system is an innovative and cost-effective model for providing primary care,” said Linda McVeigh, Executive Director of Country Doctor Community Health Centers.
In a time of rising costs and a decreasing number of medical professionals practicing in the state, the community health center system provides primary care for 10% of the state’s population, but only comprises 2% of the state’s healthcare expenditures. This system provides care for 1 in 2 uninsured children, 1 in 3 people in poverty, and 1 in 4 Medicaid recipients. It is the vital healthcare safety net for Washington State’s residents and those most at-risk.
Mary Looker, CEO of the Washington Association of Community & Migrant Health Centers, said, "This report highlights the significant contribution of Community Health Centers to the economy of the State of Washington and its local communities. We are very proud that our Health Centers provide high quality services to this state's most vulnerable citizens."
Study Background
The study, The Economic and Clinical Impact of Community Health Centers in Washington State, was commissioned by Community Health Network of Washington in collaboration with the Washington Association of Community & Migrant Health Centers, and is the first to research and measure the financial impact of a community healthcare system across an entire state. Available findings assessed impacts to the county level. The research and analysis was conducted by Dobson DaVanzo & Associates using the IMPLAN economic modeling system.
Community Health Center Background
Community health centers are the largest primary care providers in the U.S., serving 17 million people in the U.S. and approximately 600,000 Washington residents. The centers are mandated by Federal law to serve all people regardless of ability to pay. Across the nation community health centers provide critical support for those most in need of assistance – people without insurance or below the poverty line. Demand for community health centers is expected to rapidly increase due to changes in Medicaid eligibility, the rising cost of private insurance, and the massive growth of the retirement population.
The full paper, The Economic and Clinical Impact of Community Health Centers in Washington State, is available at: www.chnwa.org.
ABOUT US
Founded by community health centers in Washington State, Community Health Network of Washington (CHNW) is a community health center focused delivery network, whose mission is to improve the health status of our communities through the provision of high-quality, affordable, community-based health care to underserved individuals and families.
Community Health Plan provides managed care services for more than 225,000 individuals and families throughout Washington who are enrolled in Basic Health, Healthy Options, the State Children’s Health Insurance Program, General Assistance–Unemployable program and Medicare Advantage. The health plan’s delivery system includes over 300 primary care clinics, 1,600 providers, 8,000 specialists, and 90 hospitals.
Community Health Network of Washington
Rebecca Kavoussi, 206-613-8930
Rebecca.kavoussi@chnwa.org
or
PRR
Sean Baze, 206-462-8369
sbaze@prrbiz.com
