In context: An update released Monday shows the economic impact the Floyd healthcare system had on Northwest Georgia in 2018 as well as Northeast Alabama in 2019. Statewide figures have not been released from the Georgia Hospital Association, which showed the 2017 economic impact for all state hospitals at $54 billion.
The news release comes at a time when healthcare systems are reeling from the impact of the coronavirus pandemic, especially as some patients are avoiding preventive care and screenings because of related concerns.
In May, Floyd president and chief executive officer Kurt Stuenkel outlined the COVID-19 impact: Floyd operates at about a $40 million revenue stream per month, he says, with less than $2 million going toward the bottom line. Traditional expenses eat up the rest. In March, the revenue flow dropped to $30 million and then to $24 million in April. At the same time, those $38 million or so in expenses didn’t go away, Stuenkel says. Emergency room and urgent traffic dropped by 50 percent, he adds.
How those numbers look, in terms in total regional impact when 2020 ends, could be far different from the latest data shared below. Background
Media release: The total economic impact of the Floyd health system on local and state economies is more than $841.2 million. That figure is based on a report from the Georgia Hospital Association and data supplied by Cherokee Medical Center and the Alabama Hospital Association. Floyd also provides approximately $45.4 million in uncompensated care while generating approximately 11,130 full-time health care-related jobs in Northwest Georgia and northeast Alabama, including approximately 3,200 full-time positions within the Floyd health system.
The total economic impact reflects Floyd’s direct expenditures of more than $367.8 million combined with economic multipliers developed by the United States Department of Commerce’s Bureau of Economic Analysis. The jobs-generated total takes into account the approximately 3,200 full-time positions at Floyd combined with a BEA-estimated 7,930 full-time jobs that support the health system. These multipliers factor in the “ripple” effect of the system on other sectors of the economy, such as medical supplies, durable medical equipment and pharmaceuticals. Economic multipliers are used to model the resulting impact of a change in one industry on the “circular flow” of spending within an economy as a whole.
Floyd is a major component of the area’s economic strength; however, the system’s leadership, like the rest of the Georgia and Alabama hospital communities, is concerned about economic challenges that affect the hospital’s ability to deliver timely and efficient care. A fast-growing uninsured population and inadequate payments from government insurance programs like Medicare and Medicaid have made it increasingly difficult to meet the community’s health care needs.
The Floyd health system includes Floyd Medical Center, a 304-bed acute care hospital in Rome; Polk Medical Center, a 25-bed critical access hospital in Cedartown; and Cherokee Medical Center, a 60-bed acute care hospital in Centre, Ala. The hospitals are managed by Floyd Healthcare Management Inc.
Floyd Medical Center: The total economic impact on the local and state economy is more than $752.78 million, according to the GHA. Floyd provides approximately $36.58 million in uncompensated care while generating an estimated 10,400 full-time jobs throughout Floyd County and the rest of the state, including almost 3,000 employees at Floyd Medical Center. The hospital also has direct expenditures of more than $327.32 million.
Polk Medical Center: The total economic impact on the local and state economy is more than $59.3 million, according to the GHA. Polk provides approximately $6.26 million in uncompensated care while generating an estimated 600 full-time jobs throughout Polk County and the rest of the state, including more than 150 full-time employees at the hospital. Polk Medical Center also has direct expenditures of more than $25.79 million.
Cherokee Medical Center: The total economic impact on the local and state economy is more than $29.13 million, according to hospital totals and multipliers provided by ALAHA. Cherokee provides approximately $2.52 million in uncompensated care while generating an estimated 130 full-time jobs throughout Cherokee County and the rest of the state, including more than 50 full-time employees at the hospital. Cherokee also has direct expenditures of more than $14.7 million.
Data for the Georgia hospital reports is generated from reports filed for 2018.The Alabama hospital report is from fiscal year 2019 data.