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Are Hospitals an Export Industry?

Empirical Evidence From Five Lagging Regions

University of New Orleans

Hospitals make substantial contributions to local and regional economies through the purchase of goods and services and the employment of large numbers of workers. In addition, research hospitals are a key component of the knowledge-based economy supporting an experienced and educated workforce and originating and transferring knowledge and innovation. Despite their importance, hospitals have been understudied from an economic development perspective. The lack of attention is, in part, because of the perception of health care as a "nonbasic" or locally serving activity that has little impact on driving a metropolitan area's economic development. This article uses patient-origin data from the 2004 American Hospital Directory to determine the magnitude of Medicare exports from 62 hospitals in five slow-growth or lagging metropolitan areas. This research indicates that hospitals are substantial contributors to the economic base of these regions and identifies characteristics of top exporting hospitals.

Key Words: hospital exports • health care • eds and meds

This version was published on August 1, 2009

Economic Development Quarterly, Vol. 23, No. 3, 242-253 (2009)
DOI: 10.1177/0891242409332371


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