Study: Dothan area healthcare industry means almost $2 billion to area

The area’s healthcare industry means almost $2 billion to the local economy, and is responsible for about one of every three jobs in Houston County, according to a study released Monday.

The healthcare economic impact study, conducted by the research firm Tripp Umbach and commissioned by the Dothan Area Chamber of Commerce, concluded that the area’s healthcare industry has a total economic impact of $1.8 billion in Houston County and an even greater economic impact throughout Alabama.

“There are approximately 46,292 employees within Houston County. Based on these projections, Dothan’s health care industry is responsible for approximately 36 percent of the jobs in Houston County,” the study states.

The study collected information on the number of people directly employed in the local healthcare industry including those employed by Dothan’s two hospitals (Southeast Alabama Medical Center and Flowers Hospital) as well as home health care services, ambulance services, dentist offices, outpatient care centers, rehabilitation centers and other related businesses. It also calculated induced jobs created in other indirectly related to the healthcare industry.

“Local companies that provide goods and services to healthcare institutions hire additional individuals to support the purchasing of the healthcare industry and their employees,” the study states.

The impact on the local economy is expected to be enhanced even more by the proposed Alabama College of Osteopathic Medicine. The study projects the college will have a $300 million economic impact on the region by 2030.

Other key findings from the study include:

» The Dothan Area healthcare industry directly employs 8,700 and supports an additional 7,700 jobs in the region.

» The study estimates a direct economic impact of $1.12 billion in Houston County and a total economic impact of $1.8 billion. Statewide, the study estimates an economic impact of $1.955 billion.

» The Dothan healthcare industry generates approximately $80 million in local and state taxes through its operations, employment and spending statewide. Government revenue includes collections on employee compensation, indirect business tax, corporate profits and dividends.

“The economic indicators produced by the Chamber prove that the Wiregrass entrusts their health to our medical community and we are proud to provide them with the high quality healthcare they deserve,” said Suzanne Woods, CEO of Flowers Hospital, which has grown over the past 60 years to a 235-bed facility that employs 1,300 with a medical staff of more than 270 physicians.

Southeast Alabama Medical Center CEO Ron Owen said the study accurately highlights the importance of the healthcare industry to the Wiregrass.

“Southeast Alabama Medical Center recognizes the importance of the healthcare sector to the economic growth of the area and we will continue to recruit the most highly-trained physicians and healthcare professionals to our growing hospital campus,” said Owen, adding that SAMC is Houston County’s largest employer with 2,470 workers, including a medical staff of 300.

Dothan Area Chamber of Commerce President Matt Parker said the study's findings speak loudly.

“The study affirms many of our efforts to grow and expand the health care sector of our economy, as it is one of our strong market niches,” Parker said.