Princeton, NJ Prepared by: The Boyd Company, Inc. Boston Copley Marriott Summary March 30, 2012 HEALTHCARE DATA SECURITY: WHAT IT COSTS BY CITY A recently completed corporate site selection study compares the cost of operating a healthcare data security center in a series of 50 U.S. cities. The study includes cities housing significant concentrations of medical and healthcare industry operations as well as smaller regional centers of the nation’s $2.6 trillion healthcare services industry.
The Boyd report, “Healthcare Services Industry: A Comparative Cost Analysis for Information Assurance Operations,” characterizes information security as a major new driver shaping strategic planning, capital spending and site selection within the healthcare services industry.
The Boyd Company of Princeton, NJ, provides independent site selection counsel to leading U.S. and overseas corporations.
Founded in 1975, Boyd
clients include: Hospira; Progressive Insurance; Sun Life Assurance; Aventis; Visa International and others. Periodically, Boyd charts cost structures in high growth industry sectors such as the healthcare I.T. field.
The Boyd cost study focuses on the burgeoning healthcare information assurance field and those I.T. companies and business units
dedicated to
preventing security breaches and computer crimes like medical record fraud, insurance scams and the identity theft of patients and policyholders
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
2 Despite a tepid national economy and credit squeeze,
Boyd estimates that
healthcare data security spending in 2012 will top $40 billion, an increase of 22 percent from 2011 levels. Boyd projects that spending will top $70.0 billion by 2015. Much of this spending and job growth will come from investments in electronic health record (EHR) systems, mobile health applications and efforts to comply with new government standards.
Investments in information security will accelerate even further as healthcare providers ramp up to share data with patients, their surrogates and health information exchanges. Medical records sharing is also creating new I.T. niche markets in areas like data and e-mail encryption.
Last year saw an unprecedented level of data breaches carried out by hackers and other unauthorized individuals who either stole or unlawfully snooped into the private health records of patients. According to research from Redspin Inc., breaches of protected health information (PHI) increased 97% in 2011 over 2010 levels. The numbers also show that 19 million patients' health records were affected.
In at least three states, attorneys general have successfully filed actions in cases of large-scale breaches. In the first, then-Attorney General Richard Blumenthal in Connecticut, settled for $250,000 a lawsuit against insurer HealthNet. The insurer was accused of losing a computer disk containing information for more than 1.5 million consumers. HealthNet also had to take measures to prevent further incidents under the 2010 settlement.
Employment growth in the healthcare I.T. field is far out distancing the anemic national pace, with jobs within the medical records and health information technician field projected to grow by Boyd by a strong 22 percent in 2012. Healthcare I.T. positions range from entry level coders to highly trained and well The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
3 compensated data management professionals with annual salaries in the $100,000 and over range.
The new Boyd study analyzes all major geographically-variable operating costs that are most critical to the decision where to locate new healthcare data security facilities.
Such costs include: skilled labor in health information management
and data security; land costs; construction costs; taxes; utilities; corporate travel and other occupancy costs.
Annual operating costs in the Boyd study range from a high of $36.8 million in New York to a low of $17.5 million in Sioux Falls, SD. Baltimore costs total $21.4 million per year, one of the lowest cost locations in the Northeast U.S and showing significant savings vis-Ă -vis New York, Boston and Philadelphia. Annual costs in the study are scaled to a healthcare data security center employing 150 workers and occupying 150,000 sq. ft. of newly-constructed space.
Detailed in the following table is a cost ranking of the 50 surveyed U.S. cities.
TOTAL ANNUAL OPERATING COST RANKINGS
Healthcare Information Assurance Center Location New York, NY San Francisco, CA Los Angeles, CA Stamford, CT Newark , NJ San Diego, CA Boston, MA Chicago, IL Seattle, WA Hartford, CT Miami, FL
Total Annual Operating Costs $32,678,568 $27,811,099 $25,797,759 $25,515,566 $24,629,080 $24,288,263 $23,174,826 $23,165,146 $22,533,633 $22,012,649 $21,759,558
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
4
Healthcare Information Assurance Center Location Sacramento, CA Minneapolis/St. Paul, MN Philadelphia, PA Phoenix, AZ Houston, TX Baltimore, MD Denver , CO Buffalo, NY New Orleans, LA Dallas, TX Palm Beach County, FL Broward County, FL Springfield, MA Portland , ME Las Vegas, NV Milwaukee, WI Cleveland, OH Kansas City, MO Pittsburgh, PA Colorado Springs, CO Atlanta, GA Memphis, TN Columbus, OH Tampa/St. Petersburg, FL Orlando, FL Des Moines, IA Omaha, NE San Antonio, TX Salt Lake City, UT Jacksonville, FL Sarasota/Bradenton, FL Birmingham, AL Louisville, KY Ft. Wayne, IN Lee County, FL Pensacola, FL Ft. Walton/Destin, FL Tulsa, OK Sioux Falls, SD
Total Annual Operating Costs $21,719,173 $21,649,705 $21,592,407 $20,950,925 $20,768,146 $20,732,562 $20,706,459 $20,466,343 $20,456,324 $20,381,017 $20,371,757 $20,245,536 $20,218,692 $20,187,147 $20,091,494 $20,053,940 $20,036,433 $19,437,198 $19,386,498 $19,290,645 $19,098,367 $19,067,690 $19,051,062 $19,026,286 $18,660,215 $18,609,434 $18,594,212 $18,531,415 $18,508,075 $18,435,712 $18,406,644 $18,387,586 $18,340,307 $18,281,456 $18,119,456 $18,030,147 $17,873,628 $17,755,489 $17,053,792
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
5 In an industry whose cost structures are under constant scrutiny by patients, insurance companies and government agencies, comparative economics are ruling investment and location decisions for new facilities.
In today’s difficult
economy, improving the bottom line on the cost side of the ledger is often easier than on the revenue side for many healthcare services companies
Operating cost differentials between an acceptable city and an optimum location can be very substantial.
Itemized annual operating cost comparisons for
Baltimore and selected U.S., cities as well as comparative costs for healthcare services I.T. workers are presented below.
What it Costs to Operate A Healthcare Data Security Center: The Highs and Lows of It
(Highest Cost City) New York NY
Los Angeles CA
Boston MA
Minneapolis/ St. Paul MN
Baltimore MD
Atlanta GA
(Lowest Cost City) Sioux Falls SD
Labor Costs (2) Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$76,722 $11,508,300 $4,373,154
$73,556 $11,033,400 $4,192,692
$75,717 $11,357,550 $4,315,869
$68,196 $10,229,400 $3,887,172
$67,214 $10,082,100 $3,831,198
$64,637 $9,695,550 $3,684,309
$58,519 $8,777,850 $3,335,583
Total Annual Labor Costs
$15,881,454
$15,226,092
$15,673,419
$14,116,572
$13,913,298
$13,379,859
$12,113,433
Electric Power Costs
$1,261,620
$811,872
$859,620
$504,348
$567,600
$604,668
$451,440
Amortization Costs
$8,809,515
$7,204,597
$3,999,209
$4,165,391
$4,067,492
$3,168,841
$3,011,672
Property and Sales Tax Costs
$5,089,556
$1,621,088
$1,627,259
$2,107,622
$1,316,866
$993,389
$892,033
Heating and Air Conditioning Costs
$1,118,528
$590,286
$604,985
$413,404
$509,779
$644,419
$396,758
$517,895
$343,824
$410,334
$342,368
$357,527
$307,191
$188,456
$32,678,568
$25,797,759
$23,174,826
$21,649,705
$20,732,562
$19,098,367
$17,053,792
Corporate Travel Costs Total Annual Geographically-Variable Operating Costs NOTES: (1) Totals reflect a construction assumption. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
6 Comparative Annual Healthcare I.T. Salaries
Job Title I.T. Group Medical Data Security Analyst Medical Data Security Analyst, Sr. Medical Data Security Analyst Manager EDP Auditor EDP Auditor, Sr. I.S. Security Manager Information Technology Auditor I Information Technology Auditor II Information Technology Auditor III Network Systems Group Network Administrator I Network Administrator II Network Administrator III Network Engineer I Network Engineer II Network Engineer III Network Security Systems Manager Security Administrator Systems Administrator Systems Administrator, Sr. Telecom Group Telecommunications Engineer I Telecommunications Engineer II Telecommunications Engineer III Telecommunications Manager Test Engineer I Test Engineer II Test Engineer III Health Information Web Security Group Medical Records Technician I Medical Records Technician II Medical Records Technician III Fraud Prevention Associate I Fraud Prevention Associate II Fraud Prevention Associate III Fraud Prevention Manager Web Security Administrator Web Security Manager
New York NY
Los Angeles CA
Boston MA
Minneapolis/ St. Paul MN
Baltimore MD
Atlanta GA
Sioux Falls SD
$86,399 $110,342 $133,362 $85,445 $105,123 $141,619 $68,715 $84,550 $106,095
$82,822 $105,776 $127,843 $81,909 $100,771 $135,760 $65,872 $81,051 $101,705
$85,266 $108,895 $131,611 $84,324 $103,743 $139,762 $67,814 $83,441 $104,703
$76,797 $98,078 $118,539 $75,948 $93,438 $125,879 $61,079 $75,154 $94,304
$75,690 $96,664 $116,832 $74,854 $92,093 $124,067 $60,198 $74,070 $92,945
$72,788 $92,960 $112,353 $71,986 $88,563 $119,311 $57,891 $71,231 $89,381
$65,899 $84,162 $101,719 $65,171 $80,180 $108,018 $52,412 $64,489 $80,921
$64,611 $77,983 $93,032 $83,624 $98,092 $118,490 $124,642 $102,177 $93,545 $113,692
$61,936 $74,756 $89,183 $80,163 $94,033 $113,586 $119,485 $97,949 $89,673 $108,987
$63,764 $76,961 $91,813 $82,527 $96,806 $116,935 $123,008 $100,837 $92,317 $112,202
$57,429 $69,315 $82,691 $74,329 $87,191 $105,319 $110,788 $90,821 $83,147 $101,056
$56,603 $68,317 $81,502 $73,259 $85,934 $103,803 $109,193 $89,513 $81,951 $99,601
$54,434 $65,697 $78,377 $70,451 $82,640 $99,824 $105,008 $86,083 $78,809 $95,782
$49,282 $59,480 $70,958 $63,783 $74,818 $90,376 $95,068 $77,934 $71,350 $86,718
$71,575 $86,804 $101,247 $130,352 $73,035 $87,302 $98,308
$68,613 $83,213 $97,056 $124,956 $70,011 $83,689 $94,241
$70,635 $85,667 $99,920 $128,641 $72,077 $86,157 $97,019
$63,619 $77,157 $89,995 $115,864 $64,917 $77,598 $87,382
$62,703 $76,047 $88,698 $114,196 $63,982 $76,482 $86,123
$60,299 $73,130 $85,297 $109,817 $61,530 $73,550 $82,822
$54,592 $66,209 $77,224 $99,423 $55,706 $66,589 $74,983
$36,411 $49,404 $54,636 $46,745 $53,432 $70,759 $91,992 $117,647 $164,331
$34,930 $47,381 $52,399 $44,831 $51,244 $67,859 $88,224 $112,827 $157,600
$35,945 $48,757 $53,919 $46,131 $52,732 $69,831 $90,785 $116,103 $162,176
$32,373 $43,913 $48,563 $41,549 $47,494 $62,895 $81,768 $104,571 $146,067
$31,907 $43,281 $47,863 $40,951 $46,809 $61,989 $80,590 $103,066 $143,963
$30,684 $41,622 $46,029 $39,380 $45,015 $59,613 $77,500 $99,114 $138,445
$27,779 $37,683 $41,673 $35,653 $40,755 $53,970 $70,165 $89,734 $125,341
Academic Training and National Site Selection Trends In addition to costs and security issues, the presence of academic programs in colleges and community colleges that are certified by Chicago-based American Health
Information
Management
Association
(AHIMA)
its
accrediting
organization, the Commission on Accreditation for Health Informatics and Information Management Education (CAHIIM) can distinguish one city
from
another as companies seek to recruit from a labor pool having a steady stream of new entrants educated in the latest data security techniques specific to the healthcare services field.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
7 Regarding national site selection trends, Boyd sees a shift of data security investment to smaller market, lower risk and less costly cities having the necessary telecommunications infrastructure, trained labor resources and insulation from natural disasters.
Regionally, mid-continent states are
especially attractive due to lower land costs for data security center sites and their desired buffer zones, preferred central time zone, relative insulation from natural disasters and affordable and reliable energy, including renewable energy technologies such as wind power which is highly coveted by the green-conscious healthcare services industry.
Mid-continent states like Iowa, Texas, Oklahoma
and South Dakota have
recently attracted major new data security investments, both in and out of the healthcare services field. Google and Microsoft, both with new online medical records services, have selected Iowa for major new data center facilities. The study’s top ranked city, Sioux Falls, is located in South Dakota, the state having the lowest number of identity thefts per capita according to Federal Trade Commission figures. New Jersey-based ADP, the nation’s largest processor of employee social security, Medicare and payroll data,
opened a major data
security center in Sioux Falls and its Dakota State University is nationally known for its CAHIIM-accredited programs in health information management.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
8
SUMMARY COST EXHIBITS FOR ALL 50 COMPARATIVE CITIES
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
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COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Portland ME
Boston MA
Springfield MA
Hartford CT
Stamford CT
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$68,014 $10,202,100 $3,876,798
$75,717 $11,357,550 $4,315,869
$69,495 $10,424,250 $3,961,215
$73,759 $11,063,850 $4,204,263
$76,895 $11,534,250 $4,383,015
Total Annual Labor Costs
$14,078,898
$15,673,419
$14,385,465
$15,268,113
$15,917,265
$911,112
$859,620
$788,595
$951,492
$951,492
Amortization Costs
$3,319,363
$3,999,209
$3,277,976
$3,666,052
$5,627,532
Property and Sales Tax Costs
$1,020,438
$1,627,259
$956,929
$1,117,562
$1,945,881
Heating and Air Conditioning Costs
$542,732
$604,985
$586,110
$679,126
$699,362
Corporate Travel Costs
$314,604
$410,334
$223,617
$330,304
$374,034
$20,187,147
$23,174,826
$20,218,692
$22,012,649
$25,515,566
Electric Power Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
10
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) New York NY
Newark NY
Buffalo NY
Philadelphia PA
Pittsburgh PA
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$76,722 $11,508,300 $4,373,154
$74,465 $11,169,750 $4,244,505
$66,958 $10,043,700 $3,816,606
$69,491 $10,423,650 $3,960,987
$65,714 $9,857,100 $3,745,698
Total Annual Labor Costs
$15,881,454
$15,414,255
$13,860,306
$14,384,637
$13,602,798
Electric Power Costs
$1,261,620
$792,204
$786,672
$594,012
$591,432
Amortization Costs
$8,809,515
$4,926,451
$3,373,495
$4,171,655
$3,373,680
Property and Sales Tax Costs
$5,089,556
$2,325,875
$1,586,110
$1,546,500
$978,230
Heating and Air Conditioning Costs
$1,118,528
$807,260
$571,971
$535,597
$501,201
$517,895
$363,035
$287,789
$360,006
$339,157
$32,678,568
$24,629,080
$20,466,343
$21,592,407
$19,386,498
Corporate Travel Costs Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
11
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Baltimore MD
Louisville KY
Memphis TN
Birmingham AL
Atlanta GA
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$67,214 $10,082,100 $3,831,198
$64,935 $9,740,250 $3,701,295
$64,499 $9,674,850 $3,676,443
$62,258 $9,338,700 $3,548,706
$64,637 $9,695,550 $3,684,309
Total Annual Labor Costs
$13,913,298
$13,441,545
$13,351,293
$12,887,406
$13,379,859
$567,600
$360,204
$462,204
$460,392
$604,668
Amortization Costs
$4,067,492
$3,182,678
$3,098,221
$3,087,124
$3,168,841
Property and Sales Tax Costs
$1,316,866
$708,720
$1,269,348
$1,128,463
$993,389
Heating and Air Conditioning Costs
$509,779
$353,065
$607,646
$567,779
$644,419
Corporate Travel Costs
$357,527
$294,095
$278,978
$256,422
$307,191
$20,732,562
$18,340,307
$19,067,690
$18,387,586
$19,098,367
Electric Power Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
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COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Jacksonville FL
Orlando FL
Palm Beach County FL
Broward County FL
Miami FL
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$61,652 $9,247,800 $3,514,164
$61,131 $9,169,650 $3,484,467
$61,615 $9,242,250 $3,512,055
$60,259 $9,038,850 $3,434,763
$63,797 $9,569,550 $3,636,429
Total Annual Labor Costs
$12,761,964
$12,654,117
$12,754,305
$12,473,613
$13,205,979
$405,987
$466,846
$548,760
$548,760
$548,760
$3,387,901
$3,456,878
$4,418,775
$4,375,949
$4,859,885
Property and Sales Tax Costs
$992,894
$958,249
$1,199,903
$1,329,496
$1,562,858
Heating and Air Conditioning Costs
$616,741
$856,055
$1,161,634
$1,220,752
$1,236,347
Corporate Travel Costs
$270,225
$268,070
$288,380
$296,966
$345,729
$18,435,712
$18,660,215
$20,371,757
$20,245,536
$21,759,558
Electric Power Costs Amortization Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
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COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Lee County FL
Sarasota/ Bradenton FL
Tampa/ St. Petersburg FL
Ft. Walton/ Destin FL
Pensacola FL
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$59,324 $8,898,600 $3,381,468
$60,224 $9,033,600 $3,432,768
$62,898 $9,434,700 $3,585,186
$58,250 $8,737,500 $3,320,250
$58,629 $8,794,350 $3,341,853
Total Annual Labor Costs
$12,280,068
$12,466,368
$13,019,886
$12,057,750
$12,136,203
$548,760
$548,760
$548,760
$727,932
$727,932
$3,173,652
$3,258,036
$3,248,332
$3,011,922
$2,922,398
$714,672
$793,645
$884,980
$752,723
$883,594
$1,143,186
$1,069,776
$1,049,310
$1,101,265
$1,142,510
$259,118
$270,059
$275,018
$222,036
$217,510
$18,119,456
$18,406,644
$19,026,286
$17,873,628
$18,030,147
Electric Power Costs Amortization Costs Property and Sales Tax Costs Heating and Air Conditioning Costs Corporate Travel Costs Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
14
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Tulsa OK
Dallas TX
San Antonio TX
Houston TX
New Orleans LA
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$63,076 $9,461,400 $3,595,332
$66,945 $10,041,750 $3,815,865
$61,799 $9,269,850 $3,522,543
$67,097 $10,064,550 $3,824,529
$62,375 $9,356,250 $3,555,375
Total Annual Labor Costs
$13,056,732
$13,857,615
$12,792,393
$13,889,079
$12,911,625
$277,536
$650,520
$438,360
$729,300
$677,328
$2,927,469
$3,277,780
$3,146,879
$3,368,754
$3,950,603
Property and Sales Tax Costs
$862,526
$1,222,783
$1,193,350
$1,196,569
$1,528,738
Heating and Air Conditioning Costs
$361,009
$1,024,135
$670,273
$1,224,621
$1,070,946
Corporate Travel Costs
$270,217
$348,184
$290,160
$359,823
$317,084
$17,755,489
$20,381,017
$18,531,415
$20,768,146
$20,456,324
Electric Power Costs Amortization Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
15
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY(1) Cleveland OH
Columbus OH
Chicago IL
Ft. Wayne IN
Milwaukee WI
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$66,374 $9,956,100 $3,783,318
$65,465 $9,819,750 $3,731,505
$75,054 $11,258,100 $4,278,078
$64,338 $9,650,700 $3,667,266
$68,388 $10,258,200 $3,898,116
Total Annual Labor Costs
$13,739,418
$13,551,255
$15,536,178
$13,317,966
$14,156,316
$652,452
$473,196
$316,656
$401,760
$543,444
Amortization Costs
$3,652,650
$3,295,534
$4,741,210
$3,206,930
$3,432,283
Property and Sales Tax Costs
$1,221,405
$1,047,147
$1,902,573
$775,119
$1,249,988
Heating and Air Conditioning Costs
$460,663
$404,694
$279,469
$341,937
$380,360
Corporate Travel Costs
$309,845
$279,236
$389,060
$237,744
$291,549
$20,036,433
$19,051,062
$23,165,146
$18,281,456
$20,053,940
Electric Power Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
16
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Kansas City MO
Minneapolis/ St. Paul MN
Des Moines IA
Omaha NE
Sioux Falls SD
Labor Costs (2) Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$65,040 $9,756,000 $3,707,280
$68,196 $10,229,400 $3,887,172
$64,684 $9,702,600 $3,686,988
$62,537 $9,380,550 $3,564,609
$58,519 $8,777,850 $3,335,583
Total Annual Labor Costs
$13,463,280
$14,116,572
$13,389,588
$12,945,159
$12,113,433
Electric Power Costs (3)
$426,936
$504,348
$293,112
$468,120
$451,440
Amortization Costs (4)
$3,549,200
$4,165,391
$3,491,845
$3,309,224
$3,011,672
Property and Sales Tax Costs (5)
$1,252,537
$2,107,622
$920,180
$1,119,519
$892,033
Heating and Air Conditioning Costs (6)
$442,064
$413,404
$269,860
$476,989
$396,758
Corporate Travel Costs (7)
$303,181
$342,368
$244,849
$275,201
$188,456
$19,437,198
$21,649,705
$18,609,434
$18,594,212
$17,053,792
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
17
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Denver CO
Phoenix AZ
Salt Lake City UT
Las Vegas NV
Colorado Springs CO
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$68,888 $10,333,200 $3,926,616
$66,996 $10,049,400 $3,818,772
$63,699 $9,554,850 $3,630,843
$65,748 $9,862,200 $3,747,636
$64,578 $9,686,700 $3,680,946
Total Annual Labor Costs
$14,259,816
$13,868,172
$13,185,693
$13,609,836
$13,367,646
$513,192
$551,616
$413,604
$601,152
$384,900
Amortization Costs
$3,626,500
$3,694,752
$3,409,737
$4,051,423
$3,567,689
Property and Sales Tax Costs
$1,624,403
$1,415,269
$898,074
$945,856
$1,441,244
Heating and Air Conditioning Costs
$365,822
$1,118,684
$361,517
$596,220
$249,722
Corporate Travel Costs
$316,726
$302,432
$239,450
$287,007
$279,444
$20,706,459
$20,950,925
$18,508,075
$20,091,494
$19,290,645
Electric Power Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ
18
COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY (1) Seattle WA
San Francisco CA
Sacramento CA
Los Angeles CA
San Diego CA
Labor Costs Weighted Average Annual Earnings Annual Base Payroll Costs Fringe Benefits
$71,601 $10,740,150 $4,081,257
$77,686 $11,652,900 $4,428,102
$71,197 $10,679,550 $4,058,229
$73,556 $11,033,400 $4,192,692
$70,386 $10,557,900 $4,012,002
Total Annual Labor Costs
$14,821,407
$16,081,002
$14,737,779
$15,226,092
$14,569,902
$600,060
$937,488
$809,748
$811,872
$945,828
Amortization Costs
$5,172,944
$8,349,582
$4,195,670
$7,204,597
$6,576,313
Property and Sales Tax Costs
$1,327,014
$1,818,634
$1,008,191
$1,621,088
$1,420,078
Heating and Air Conditioning Costs
$233,398
$229,825
$656,351
$590,286
$464,417
Corporate Travel Costs
$378,810
$394,568
$311,434
$343,824
$311,725
$22,533,633
$27,811,099
$21,719,173
$25,797,759
$24,288,263
Electric Power Costs
Total Annual Geographically-Variable Operating Costs
NOTES: (1) Includes all major geographically-variable operating costs. Start-up and relocation costs not considered. Source: The Boyd Company, Inc.
The Boyd Company, Inc. Loc atio n Co nsultants Princeton, NJ