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JOHN MUIR HEALTH Population Served Project Economic and Fiscal Information Pleasant Hill Medical Office Building PLN-18-0455 February 4, 2019 ATTACHMENT H rm , . l, .. -.- . lJl1 FEB O 4 2019 J) PLANNii\iG D:.· CITY OF PLEASANT HILL Estimates are that the Pleasant Hill Medical Office Building will serve 21,000 lives during the first year of operation. We anticipate a regional draw, bringing patients from surrounding cities and keeping patients currently seeking care outside Pleasant Hill in their .own community. We consider the 120,000 residents within a 10 minute drive of central Pleasant Hill as our target patient base for this location. Our research indicates that the median household income of consumers to the Pleasant Hill location will be $102,000. Clearly, a portion of our consumers, family and/or caregivers wiJI generate more opportunities for sales and engagement in surrounding retail locations, and the community. Fiscal Impact The following data was prepared using Regional Input-Output Modeling System {RIMS II) multipliers for Contra Costa County which currently has a population of 1.1 million residents. Information specific to Pleasant Hill is not available within the. modeling system. Our estimated annual operations budget at full ramp up is $20.1 million. Assuming a conservative 10 percent of the operating budget stays in Pleasant Hill, the total economic impact for that year, including direct, indirect, and induced revenue, will be $2.8 million 1 . Additionally, for every dollar in salaries, earnings of $1.55 are realized by households employed in all industries. We estimate that impact to be $12.4 million 2 total in direct, indirect, and induced earnings. The short-term economic impact of the estimated $22. 7 million total project budget (including soft costs, construction, and equipment, but not including property purchase price) will realize $2.9 million in direct, indirect, and induced revenue using the conservative estimate that 10 percent of expenditures stay specifically in Pleasant Hill. Construction is estimated to start in the fall of 2019 with the first patient arriving in third quarter of 2020. Employment Summary Including physicians and all support staff, the Pleasant Hill Medical Building will provide jobs to 75 people including 24 physicians and approximately 50 skilled support staff, including nurse practitioners and registered nurses. The average salary for these positions will significantly exceed the county's average in 2017 of $78,298. We anticipate the creation of an additional 136 indirect and induced jobs 2 in and around Pleasant Hill. Also worth considering is that 260 John Muir Health employees currently reside in the City of Pleasant Hill.
Transcript of II'~ HEALTH rm , . lJl1
I~ JOHN MUIR II'~ HEALTH
Population Served
Project Economic and Fiscal Information Pleasant Hill Medical Office Building
PLN-18-0455
February 4, 2019
ATTACHMENT H
rm , . ~" l, .. -.- . ~
lJl1 FEB O 4 2019 J) PLANNii\iG D:.· ISi~IJ
CITY OF PLEASANT HILL
Estimates are that the Pleasant Hill Medical Office Building will serve 21,000 lives during the first year of operation. We anticipate a regional draw, bringing patients from surrounding cities and keeping patients currently seeking care outside Pleasant Hill in their .own community. We consider the 120,000 residents within a 10 minute drive of central Pleasant Hill as our target patient base for this location.
Our research indicates that the median household income of consumers to the Pleasant Hill location will be $102,000. Clearly, a portion of our consumers, family and/or caregivers wiJI generate more opportunities for sales and engagement in surrounding retail locations, and the community.
Fiscal Impact
The following data was prepared using Regional Input-Output Modeling System {RIMS II) multipliers for Contra Costa County which currently has a population of 1.1 million residents. Information specific to Pleasant Hill is not available within the. modeling system.
Our estimated annual operations budget at full ramp up is $20.1 million. Assuming a conservative 10 percent of the operating budget stays in Pleasant Hill, the total economic impact for that year, including direct, indirect, and induced revenue, will be $2.8 million 1.
Additionally, for every dollar in salaries, earnings of $1.55 are realized by households employed in all industries. We estimate that impact to be $12.4 million2 total in direct, indirect, and induced earnings.
The short-term economic impact of the estimated $22. 7 million total project budget (including soft costs, construction, and equipment, but not including property purchase price) will realize $2.9 million in direct, indirect, and induced revenue using the conservative estimate that 10 percent of expenditures stay specifically in Pleasant Hill. Construction is estimated to start in the fall of 2019 with the first patient arriving in third quarter of 2020.
Employment Summary
Including physicians and all support staff, the Pleasant Hill Medical Building will provide jobs to 75 people including 24 physicians and approximately 50 skilled support staff, including nurse practitioners and registered nurses. The average salary for these positions will significantly exceed the county's average in 2017 of $78,298. We anticipate the creation of an additional 136 indirect and induced jobs2 in and around Pleasant Hill. Also worth considering is that 260 John Muir Health employees currently reside in the City of Pleasant Hill.
Community Benefit
John Muir Health prides itself on the diverse programs, collaborations, and contributions that help to improve access to health care and the overall health of the most vulnerable residents in our community. As a not-for-profit, community-based health system, addressing community needs is rooted in our values. Overall, in 2017, we contributed $125,622,038 to our Community Benefit activities, with 93 percent going specifically towards those facing barriers to health and wellness.
In addition, John Muir Health is a sustaining partner for the Community Health Fund, previously known as the John Muir/Mt. Diablo Community Health Fund. Since its inception in 1997, the Community Health Fund has invested more than $27 million in local health initiatives. Thousands of Contra Costa residents who might have slipped through the cracks in our health care system have ongoing access to high quality, culturally sensitive primary care, specialty care, dental care, behavioral health care, and healthy aging support services for conditions that range from cancer and chronic disease through dental issues and mental illness.
For example, $114,893 in grants was awarded to the Food Bank of Contra Costa & Solano, Los Medanos College Foundation, California State University East Bay Foundation - Concord Campus, and the Diablo Valley College Foundation. These grants allow the colleges to receive technical support and product from the Food Bank, while continuing to build the capacity of their respective Campus Food Pantries to address the growing food insecurity needs of students and their families.
Sector Considerations
The health care sector continues to grow. Year-over-year employment growth for the sector stands at 2.7 percent, well above the statewide average of 1.7 percent3. The largest job gains will be observed in leisure and hospitality~ education, and healthcare, and professional and business services. Together, these industries will account for 70 percent of net job creation between 2017 and 20224.
1. Rural Health Information Economic Analysis Hub 2. Bureau of Economic Analysis Regional Input-Output Modeling System {RIMS II) 2007/2015 Multipliers 3. https://beaconecon .com/products/em ployment_report 4.ContraCostaEconomicForecast l 11- , l ~ .,1, tm• ·~1' :: 1c.1 , ;J 1-rr11 fl ,( i7r C' ~ t.lf
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