Health centers have a tremendous economic impact on the communities they serve. Jobs and expenditures associated with a health center's general operations and the construction of new facilities boost the local economy.
How is Economic Impact Calculated?
The analyses featured in our Value and Impact Analysis utilize an integrated economic modeling software called IMPLAN which applies the “multiplier effect” to capture the direct, indirect, and induced economic effects of health center business operations and capital project plans. IMPLAN generates multipliers by geographic region and by industry combined with a county/state database. It is widely used by economists, state and city planners, universities, and others to estimate the impact of projects and expenditures on the local economy.
What are Direct, Indirect, and Induced Impacts?
Direct impacts result from health center expenditures associated with operations, new facilities, and hiring. Community impacts can be indirect, resulting from purchases of local goods and services, and jobs in other industries. Community impacts can also be induced, resulting from purchases of local goods and services at a household level made by employees of the health center and suppliers.