The Maine Development Foundation recently released a study assessing the economic contribution of Inland Hospital to the regional economy of central Maine. The report, “Inland Hospital’s Contribution to the Economy in Central Maine: An Economic Multiplier Analysis”, was commissioned by Inland Hospital to understand their role in the regional economy. The study considered Inland’s direct spending for purchases and payroll in the region and used an economic multiplier analysis to estimate the share of the local economy attributable to Inland Hospital and Inland employee spending in the region.

Laurie Lachance, Maine Development Foundation President and CEO, comments, “The health care sector in central Maine is an important source of employment as well as a significant contributor to the local economy.  Our study shows that in 2008, Inland revenues were greater than $34 million and the hospital employed more than 370 people, with a payroll exceeding $18 million.”

The study determined that Inland employees spent about $9 million directly in the local area and the hospital spent $3 million in the area, for a total of $12 million. For each of the $12 million dollars spent in the region, an additional $0.66 was generated through additional spending by others for a total contribution of $18 million.

The report describes the characteristics of the local economy and estimates the total spending by Inland and its employees in the region.  Surveys were used to estimate employee spending and economic impact multipliers from the U.S. Bureau of Economic Analysis for Kennebec County were applied to determine total economic contribution.

“As a major employer in Waterville, we are proud to contribute to the economic health of the area,” said John Dalton, Inland Hospital President and CEO. “Inland’s contribution continues to increase thanks to the organization’s growth over the last 2 years with the addition of new physician practices and specialty services.”

The analysis and report were conducted by a team of researchers including Edmund Cervone and Patricia Hart of Maine Development Foundation, Colby College Economics Professor, Michael Donihue, Colby College students and a student from Macalester College.

To view the complete report visit:  www.mdf.org.