Missouri’s Economy: Strengthened by Hospitals
A new series of reports from MHA demonstrate the importance of hospitals to the state's economy.
Federal Reimbursement Allowance
The first report in the series focuses on the Federal Reimbursement Allowance program and its importance as a funding source for the MO HealthNet program. The FRA is a major source of revenue to Missouri, surpassing all but the two largest sources of general revenue.
Report Highlights
- The FRA is a highly successful public/private partnership that directly benefits Missouri’s economic and health care infrastructure.
- The FRA allows lawmakers to use traditional general revenue for other state priorities.
- In state fiscal year 2009, FRA provider taxes leveraged $1.5 billion in federal matching funds.
- Sources of MO HealthNet spending in SFY 2009:
- Hospital provider taxes – $847.2 million
- Other provider taxes – $292.9 million
- State general revenue and general revenue equivalents – $1.6 billion
- Federal matching funds – $3.2 billion
- The FRA has had broad bipartisan support for nearly 20 years throughout five administrations.
- The FRA is another way that hospitals provide major economic benefits to Missourians.
Learn More
Questions?
Contact Daniel Landon or Steve Renne at MHA.
Economic Realities
The second report in the series outlines how Missouri’s hospitals have been a key stabilizing force both before and during this period of economic uncertainty. In these difficult times, it is important to focus on the sectors of our economy that create jobs and bring stable sources of revenue to the state.
Report Highlights
- MHA identifies issues affecting the state — jobs, physician shortages, education capacity and the uninsured — and how hospitals have contributed to solutions.
- Missouri’s hospitals clearly are a mainstay of the state’s economy. During 2009, Missouri hospitals added 1,100 new jobs; at the same time, 62,600 were lost statewide.
- One primary care physician working in a rural area generates $1.2 million in annual revenue and creates 23 jobs.
- In 2007, Missouri hospitals’ payroll and benefits totaled $7.2 billion. When hospital payroll is multiplied to project its aggregate effect on the economy, it has an additional economic benefit of $5.9 billion.
- When companies are looking to locate their businesses in a community, a major consideration is access to quality health care.
Learn More
Questions?
Contact Daniel Landon or Mary Becker at MHA.
Community Investment
Unlike most of the bad economic news today, this third report in the series shows that Missouri’s hospitals are maintaining their investments and commitment to their communities. This is good economic and health care news for the state of Missouri!
Report Highligts
- In 2008, hospitals provided $1.3 billion in patient care services for which they were not reimbursed. This level of unreimbursed patient care is consistent with what hospitals provided in 2007.
- Hospital payroll and benefits for 2008 totaled $7.1 billion for more than 114,000 full-time equivalent employees.
- Missouri hospitals invested $1.4 billion in capital improvements in 2008 – the multiplied effect of which is $3.3 billion.
Learn More
Questions?
Contact Daniel Landon or Mary Becker at MHA.
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