The Connection A publication of the Lawrence Chamber of Commerce January/February 2012
LMH, health industry boosts ED
Deciphera Reaches Key Milestone
By Janice Early Lawrence Memorial Hospital How important is health care to Douglas County’s economic wellbeing? Many may be surprised by the overall scale of the existing activity in the health care sector in Douglas County. From 2006 to 2011, Lawrence Memorial Hospital (LMH) has invested $115 million in capital asset additions. That capital investment includes facilities expansions and a new medical office building at the main hospital campus, a new medical office building in Eudora, and new state-of-the-art medical equipment and information technology. Last year alone, capital asset additions totaled $13.8 million. LMH is a public not-for-profit hospital and is self-funded from its operations and supported by contributions from the LMH Endowment Association. The hospital does not receive local tax dollars. In 2012, total operating revenue is projected to top $200 million, an increase of 32% in the past five years. Expenses during that same time have increased 34%. This year LMH is projecting $10 million in net income. Revenues exceeding expenses are reinvested back into the organization to fund improvements in facilities, equipment and services. LMH is one of the top five employers in Douglas County with a staff of 1,270 employees with a median wage of $22.39 an hour, excluding physicians. There has been a 26% increase in the LMH workforce in the last 10 years. The hospital’s 2012 payroll is $84 million for salaries and benefits.
Member News
According to a recent K-State Research and Extension study of the economic contributions of the state’s health care systems, in 2010 the health care sector accounted for an estimated 6.9 percent of Douglas County’s total employment, or about 4,510 jobs. Further, the study calculated economic multipliers for eight health care sectors and estimated that health care directly and indirectly accounted for 6,582 jobs throughout the Douglas County economy. It was estimated that these same sectors accounted for almost $300 million in total county income and about $108.5 million in county retail sales. Dr. John Leatherman, lead author of the K-State report, notes that research has shown time and again that local health care and education are two enormously important factors for economic development. He said the local health care system has sometimes been the “tie-breaker” in industry location decisions, and that retirees view quality local health care as a “must have” local service. Access to affordable quality local health care services is essential to attracting and retaining local businesses and retirees. Health care has been among the fastest growing economic sectors for the past 30 years. Given demographic trends, prospects for continued growth are good – even in the midst of health care reform.
Congratulations to Deciphera Pharmaceuticals on its most recent milestone, a $7 million payment from Eli Lilly and Company, in its collaboration focused on B-RAF kinase inhibitors for the study of potential oncology therapeutics. The collaboration began in October 2008.
Chemtrade, ICL Performance Honored Congratulations to our members Chemtrade and ICL Performance Products! They received an award from the U.S. EPA Region 7 for “Outstanding Achievement in Planning, Prevention and Risk Reduction in the Community.” The award recognizes their leadership in the joint ICL/Chemtrade Community Action Panel. They were the only Kansas companies to receive an award.
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