Economic Impact Report
Arkansas Hospitals 2024
Arkansas hospitals are proud to play a central role in keeping our state’s communities healthy, strong, and vibrant!
Introduction
Arkansas hospitals are proud to provide quality, efficient health care for communities throughout our state. Hospitals stand ready to care for everyone, with our doors open to all – 24 hours a day, seven days a week, 365 days a year. In 2022, Arkansas hospitals cared for more than 350,000 patients admitted for care and more than 6.2 million outpatient visits, in an effort to keep our state healthy, strong, and vibrant. This record of service is – and always will be – our most valuable contribution to the state.
Throughout our state, hospitals strengthen the infrastructures of local communities Arkansas residents rely on their local hospitals and health systems to:
Provide high-quality, efficient health care. Readily respond with care for community members throughout their lifetimes, whenever illness or injury strikes
Serve as safe harbors during and after emergencies and disasters
Provide an optimal setting for bringing new life into the world.
Provide comfort at the end of life.
Educate people about preventing and managing diseases, while promoting practices that support health and wellbeing
Attract new health care services, businesses, and industries to our communities – resources which are essential for future growth.
Recognized much less often are the contributions hospitals make to local economies and to the state economy, through the people they employ and the impact of their spending As part of this larger picture, Arkansas hospitals are critical to the economic viability of our state. Hospitals are a major employer and purchaser of goods and services, and the health care we provide also allows people to be productive, contributing citizens
CALCULATING THE TOTAL IMPACT OF ARKANSAS HOSPITALS
total jobs provided/created economic impact payroll impact
non-salary spending impact capital spending impact
TOTAL IMPACT
94,400
$8,086,595,000
$9,266,591,000
$692,363,000
$18,045,549,000
This report identifies and measures the direct involvement of hospitals on the state’s economy, and it demonstrates the “ripple” effect of the dollars the health care sector brings into Arkansas communities and the jobs it helps create In addition, it illustrates the benefit hospitals provide in building safe, stable, and healthy communities
An Economic Anchor
In addition to enhancing the health and well-being of the communities they serve, Arkansas hospitals also contribute significantly to the area’s economic health In 2022, the estimated total annual economic impact of Arkansas Hospitals was $18,045,549,000.
PROVIDING WELL-PAID, CONSISTENT EMPLOYMENT
Arkansashospitalsemploy48,200individuals,withatotalpayrollof$4,335,511,000 Hospital payrollexpendituresserveasanimportanteconomicstimulus,creatingandsupportingjobs throughoutthestateandinlocaleconomies
DollarsearnedbyemployeesofArkansashospitalsandspentongroceries,clothing,mortgage payments,rent,etc.,generateapproximately$8,086,595,000ineconomicactivityandcreate anadditional46,200jobsinthestate’seconomy.
STIMULATING THE LOCAL ECONOMY WITH PURCHASES OF GOODS AND SERVICES
Arkansashospitalsspendapproximately$4,968,149,000peryearonthegoodsandservices theyneedtoprovidehealthcare–thingslikemedicalsupplies,electricityforbuildings,andfood forpatients Fundsspenttobuygoodsandservicesflowfromthehospitaltovendorsand businesses,creatingaripplethroughouttheeconomy.
DollarsspentbyArkansashospitalsgenerateapproximately$9,266,591,000forthestate’s economy
IMPROVING INFRASTRUCTURE FOR ALL ARKANSAS RESIDENTS
In2022,Arkansashospitalsspent$371,201,000onbuildingsandequipment
CapitalspendingbyArkansashospitalsgeneratesapproximately$692,363,000forthestate’s economyeachyear.
A Zone of Safety
Communities can take comfort in knowing that their local hospitals rose to the challenge during the COVID-19 pandemic, in addition to preparing for the challenges of tomorrow In good times and bad, hospitals do more than provide medical care to the community Hospitals provide a place of refuge, food, shelter, and information in times of distress.
Communities can rest assured that hospital doors are always open, and during the pandemic, our hospitals enhanced their level of care to provide health services to thousands of Arkansans seeking care for COVID-19, while also acting as essential partners in public health’s pandemic response effort and enacting policies to reduce the transmission of COVID-19 in their facilities They established testing, treatment, and vaccination infrastructure, developed new telemedicine programs to reach people in their homes, and created additional ICU and negative pressure beds to meet the critical demand. Today, they are important partners in the effort to maintain herd-immunity against COVID-19 through proactive vaccination programs, providing access to therapeutic options, conducting research to tackle issues with Long COVID, providing outreach and education across the state, and are vital in the effort to reach rural and underserved communities.
COVID-19 RESPONSE, TREATMENT AND PREVENTION
During the COVID-19 public health emergency, hospitals provided health services to tens of thousands of Arkansans seeking care for COVID-19. Additionally, these hospitals operated as essential partners during the public health emergency by conducting COVID-19 testing and distributing/administering COVID-19 vaccines on behalf of the Arkansas Department of Health. To enhance the State’s pandemic response, Arkansas hospitals established testing, treatment, and vaccination infrastructure, developed novel telemedicine programs to reach patients during enhanced social distancing protocols, and created additional ICU and negative pressure beds to meet the demand of the most critical patients. Today, hospitals continue to provide testing services for individuals with COVID-19 symptoms and are important partners in the effort to maintain herd-immunity against COVID-19 by recommending patients stay up to date with the latest vaccine recommendations
RAPID, EFFECTIVE RESPONSES TO MASS TRAUMA EVENTS
The highly trained professionals at our hospitals respond to all manner of natural and manmade disasters In March 2023, tornadoes ripped through Little Rock destroying homes and businesses along Rodney Parham resulting in the declaration of a state of emergency and the activation of the national guard Hospitals and first responders in Central Arkansas treated at least 40 patients Arkansas hospital personnel continue to prepare for the unexpected and stand ready to care for those most in need
TRAUMA SYSTEM
The statewide trauma system, established by Act 393 of 2009 and coordinated by the Arkansas Department of Health, assures that citizens in crisis are appropriately evaluated, triaged, and transported to hospitals best able to care for their injuries Currently, 57 hospitals in Arkansas have met the criteria and gone through the process to become designated Trauma Centers, and six have met the highest level of designation, Level I The trauma system has been credited with lowering the state’s preventable death rate by nearly half and saving more than $180 million per year
Maternal Health
Arkansas hospitals offer a variety of maternal health services pre- and post-pregnancy to support the health of new mothers and their babies
In 2022, Arkansas hospitals provided birthing services for more than 30,000 births. Thirty-five Arkansas hospitals are licensed and staffed to provide labor and delivery services
Forty-nine Arkansas counties do not have a birthing hospital.
LOCATION OF BIRTHING HOSPITALS IN ARKANSAS, 2024
Due to a lack of birthing hospitals in many rural areas, Arkansas mothers travel an average of 17 minutes to receive birthing services during delivery, with some rural women needing to travel up to 65 minutes to receive services. Hospitals in Arkansas, especially rural hospitals, would prefer to provide birthing services to their community members, but reimbursement shortfalls, dwindling birthing rates, staffing and recruitment hurdles, and the shifting political landscape hinder hospitals from opening and sustaining birthing services. For example, 56% of births in Arkansas are paid for using Medicaid funding. Research conducted by the Health Care Cost Institute showed that Medicaid paid, on average, 56% less than employeesponsored insurance for birthing services While hospitals in urban areas are able to offset the low reimbursement of Medicaid births with employer-sponsored reimbursement, rural areas cannot sustain the high rates of Medicaid births at the current reimbursement rates
A Good Neighbor
Arkansas hospitals offer health promotion and disease prevention services to support the well-beingofmembersofourcommunities.
Health Promotion Outreach: Through programs aimed at preventing disease before it occurs, hospitals save individuals and the state millions of dollars in treatment costs and lost earnings Many hospitals host vaccination clinics and health fairs or participate in other organized community events, providing risk assessments, health promotion material,supportgroups,andassistancewithhealthcareaccessandinformation
EarlyEvaluationforCOVID-19andAccesstoEmergingTherapeutics: Some of the first access points for COVID-19 testing in Arkansas were provided by hospitals, which were quick to develop drive-through testing sites to provide this essential public health service within their communities. Following the public health emergency, hospitals continue to provide COVID-19 testing and vaccination services as well as provide monoclonal antibody treatments and other therapeutics. Arkansas hospitals have also been at the forefront of academic research for individuals who experience severe and ongoing symptoms associated with Long COVID, in addition to providing ongoing treatmentforsymptomsastheCOVIDviruscontinuestoevolve
Mobile Disease Screening: Hospitals provide programs to screen for medical conditions in the population, thus lowering the costs of treatment with early detection Many screenings are offered in conjunction with health fair activities, such as Conway Regional System’s annual Women’s Health Fair, which offers cholesterol and glucose screenings, blood pressure checks, and bone density scans. Many hospitals offer screening services through mobile facilities, such as the mobile mammography units operated by the University of Arkansas for Medical Sciences and Mercy Hospital Northwest, to name only two examples of many Mobile disease screenings bring valuable tools and services to geographically remote areas that lack easy access to healthcareresources
Services to Combat Food Insecurity: Arkansas has one of the highest rates of food insecurity in the nation Recognition of this public health problem has led hospitals to reachouttocommunitiestoprovidenutritiousfoodtochildrenandfamilies.Some,such asArkansasChildren’sHospital,havedevelopedprogramsincludingneighborhoodfood pantries, summer and afterschool meal programs, and WIC and SNAP application assistance.
Hospitalshelppeopleaccessessentialservicesandinformation.
Health Insurance Access: Hospitals have played a key role in assuring the success of the Health Insurance Marketplace and Medicaid Expansion in Arkansas, by helping connect people to marketplace insurance or Arkansas Works (formally called the PrivateOption).Hospitalsthroughoutthestatehavetrainedstaffmemberstobecome
certified application counselors, who directly assist patients seeking access to health insurance. Some, such as Washington Regional Medical Center, have devoted space within their facilities to publicly accessible computer stations, where people can apply for coverage or fulfill the state’s reporting requirements, and many have also supplied wireless internet access. Furthermore, following the Medicaid redetermination process at the end of the COVID-19 public health emergency, hospitals in Arkansas assisted patients with Medicaid enrollment paperwork, and they helped individuals who lost coverage seek re-enrollment in Medicaid following the redetermination process Since the launch of these programs, and many more like them, Arkansas’s uninsured rate has dropped by more than half since 2013.
Medical-Legal Partnerships (MLPs): Personal and legal barriers, such as insurance denials, safe housing issues, and personal safety concerns can make it difficult for a person to address and recover from health problems MLPs are innovative and effective collaborative agreements between hospitals and legal-aid organizations and serve as free resources for people in need. Arkansas has seven MLPs, involving hospitals in many areas of the state.
The vital health care services provided to our communities represent the core contribution provided by Arkansas Hospitals.
In 2022, the most recent year with data available, our hospitals cared for patients during:
351,584
INPATIENT VISITS
1,446,356
EMERGENCY DEPARTMENT VISITS
4,761,464 OUTPATIENT VISITS AND PROCEDURES
33,726 BIRTHS
105
105 hospitals of all types are members of the Arkansas Hospital Association and serve Arkansans living in cities, towns, and communities located in 55 counties across the state They include 70 general acute care community hospitals (including 27 Critical Access Hospitals), four rural emergency hospitals, four long-term care hospitals, 11 psychiatric hospitals, six rehabilitation hospitals, as well as two Veterans Affairs hospitals, two pediatric hospitals, five other health care services organizations, and one women’s hospital
40
40 Arkansas counties are served by a single hospital (20 are served by a single Critical Access Hospital)
12%
12% of Arkansas workers are employed by hospitals or other health care organizations
63%
63% of AHA member organizations are charitable, not-for-profit organizations, while 25% are operated by private, for-profit companies, and 12% are public hospitals owned and operated by a city, county, state, or federal government
35
35 hospitals offer labor and delivery services for birthing mothers in Arkansas
17,971
17,971 Arkansans sought inpatient or outpatient care from the state’s hospitals each day in 2022, on average, for illnesses, injuries, and other conditions that require medical attention
$466 million
$466 million in charity care was provided by Arkanas hospitals in 2022 for patients who could not afford to pay for the cost of their services.
Conclusion
Hospitals are a major contributor to the quality of life of Arkansas residents, and they play a key role in keeping communities healthy and vibrant. The data and information contained in this report provide strong evidence that the economic benefit of our hospitals to the local and state economies is substantial To continue to attract jobs to and maintain the health of Arkansas's families and communities, it is critical that the state continues to attract high-quality health care providers and expand access to health care services.
We urge our legislators, members of Congress, and community leaders to explore and increase their understanding of hospitals' vital role in supporting both state and local economies, and to take all necessary steps to continue enacting policy to support health and health care within our state.