Economic Impact in Madison County, Alabama, with the establishment of a Veterans Hospital

Economic Impact in Madison County, Alabama, with the establishment of a Veterans Hospital

Abstract

Madison County has a strategy in place to support developments which occur at national, regional, and international level. This is noted in the World Economic Outlook Update that was issued by the International monetary fund of July 2012. The veterans’ hospitals can support economic development in this county in various ways. Veteran hospitals offer both employment opportunities direct and indirect ones while still acts as a source of revenue in the county. Therefore building a veteran hospital can be highly advantageous to this county.

Introduction

This report will focus on the economic impact in Madison County, Alabama, after the establishment of a Veterans hospital. The current economic status in Madison in regards to employment showed job growth, which has been even across the state. The unemployment rate in Madison was higher than 8.5%, the state rate. Also, according to population results of the year 2010, the population was at 18.5 million and was projected to increase to 20.5 million in the next ten years. Other demographic factors that were studied include the region’s per capita income, which is at $36,833 and has risen in recent years (Roberts, 2020). This increase in per capita income suggests growth in the economic status of the area. Also, reports on education show that Madison has the capacity to provide the educated workforce required by employers today.

About Veteran hospitals in Madison, technology is on a high level here. Madison has a professional community made up of the individuals working within easy proximity for Veteran hospital employers to reach them with ease. In terms of locality, places like Huntsville make a special place for those working in Madison to live in.

Madison County has a V.A. clinic built in Huntsville; however, the place lacks a veteran hospital to serve this growing population. The clinic operates between Monday and Saturday between 7:00 am and 5:30 pm. It is usually closed on Sundays. Additionally, the size of this clinic cannot sustain the needs of the veterans living in this area, since it is now grown to a big city. Population growth in Madison over the past five years is at 8.2% and has continued to grow (Roberts, 2020). This means business ventures will only get better while career prospects will increase. There are many places, including colleges and other world-class institutions that support education. While not all institutions are located in Madison city, the place provides a great place where learners can commute from.

Objectives

This research aims at revealing the economic impacts in Madison County, Alabama if a veteran hospital is built. Building a veteran hospital here in Tennessee will open more economic advantages for people who live here and external parties as well.

Background

Given that veterans constitute a significant percentage in Madison, the presence of Veterans hospitals can play a significant economic impact. These impacts are not yet fully traceable; however, there are devised ways on how to estimate their effect on the economy of Madison County. For instance, William s. Middleton Memorial Veterans hospital hosts clinical facility, training location for residents, department of medicine faculty members, and fellows. It is in a position to serve 130,000 veterans who live in 15 counties in south-central Wisconsin and five counties in northwestern Illinois. In the year 2018, the hospital was recognized for its workplace and clinical excellence by the U.S. Department of Veterans Affairs (Roberts, 2020). Veteran hospitals offering high-quality services and available 24 hours a day all year can create the best revenue flow for the county. The economic impacts possible through building veteran hospital include a source of employment, independent living, better housing creation and open in the revenue stream.

Veteran hospitals are amongst the largest employers that the county can have. The population growth in Madison County is notable. It is clear that the growth of Madison county population is and the health care workforce is not limited, and it’s undebatable. Some people try to focus on jobs as a unique role the veteran’s hospitals will play in Madison. However, job creation is a significant part and function of the hospital that boost economic growth. Local community members will have a range of occupations, including hospital cleaners to the highly specialized workforce.

Veteran hospitals in Madison will help in the prevention of brain drain by absorbing the college-educated professionals. Almost every industry in Madison will be affected by the veterans’ hospital operations. First, the hospitals will buy goods and services from the county in both direct and indirect ways (Becker, 2019). For instance, the hospitals will have to purchase prescription drugs, food, contract building services, buy bed linens, and information technology services. These services create revenues for the local businesses, income for the employees as well as opening opportunities for indirect jobs.

Either the employees of these hospitals will spend their salaries at the local economy through purchasing groceries, cars, and homes, among other things. Besides, every economic activity carried out by the hospital leads to tax revenues (Kessler & McClellan, 2001). For instance, every retail business, together with some of the services, is subject to both county and local taxes. Also, labour income created by the hospitals either through multiplier effect or directly through hospital employment is subject to state income tax.

In addition to that, these veterans hospitals serve out of state residents providing both in-patient and out-patient health care services. These hospitals account for a third of the hospital expenses, including salaries, drug costs, and rehabilitation services. Given that the development of this Veteran hospital will act as an essential employer providing good jobs and other opportunities to the locals and families, it will be an economic anchor in the community. It will play the role of impacting Madison’s county well-being and success. In the county, Veterans hospitals will employ hundreds of workers outside the traditional hospital setting. These services include nurses providing specialist services like mental health disorders services to substance abuse help during difficult times.

The wide ranges of health care services in Veterans hospitals means more job opportunities and employment positions from the education spectrum. While other health care jobs open gaps for advancement in the health care sector, this means that individuals at the entry-level of their career have the opportunity to advance their knowledge with time through further training and experience (Burns & Muller, 2008). This opens the possibility for higher-paying jobs and expertise in the field. In these veteran hospitals, high salaries are not just for the highly specialized medical officers; they are also paid to other specialists needed in the area. Job opportunities like dentists, physicians, and pharmacists require a high level of specialist training, and thus, the employees occupying these positions are highly paid. Since most of these opportunities are highly specialized and highly paid, most of the other jobs also are highly paying when compared with the average cost in the other industries.

References

Roberts, F. C. (2020). The Founding of Alabama: Background and Formative Period in the Great Bend and Madison County. University of Alabama Press.

Becker, D. J. (2019). Medicaid Expansion in Alabama: Revisiting the Economic Case for Expansion.

Burns, L. R., & Muller, R. W. (2008). Hospital‐physician collaboration: the landscape of economic integration and impact on clinical integration. The Milbank Quarterly, 86(3), 375-434.

Kessler, D., & McClellan, M. (2001). The effects of hospital ownership on medical productivity (No. w8537). National Bureau of Economic Research.