The impact of Craig Hospital is often measured in “intangibles,” the hospital’s ability to help patients and their families find independence, inspiration, self-confidence and self-sufficiency.
Now a new study quantifies the other side of Craig—the benefits to the Colorado economy that can be directly attributed to the hospital’s operations.
The study, “Craig Hospital: Economic Contribution on the Region and the State of Colorado, FY2012–FY2016,” was conducted by the Business Research Division of the Leeds School of Business at the University of Colorado Boulder. The study examined the measurable—jobs, wages, operating expenditures, capital expenditures, and visitor spending to illustrate the supply chain impacts of the industry and demonstrate the scope and reach of the hospital within Colorado.
The hospital commissioned the study to provide nonbiased, third-party research to Craig Hospital and its constituents, including governments, residents, and businesses, about the economic contributions of the hospital to Arapahoe County, the Denver Metro region, and the state of Colorado.
The study, which was presented to senior management in June, showed that the economic impact of Craig Hospital operations on the state totaled $155.6 million in 2013, and an additional $23.9 million in construction-related impacts due to the expansion and revitalization project. Over the five years FY 2012–FY 2016, the total impact related to operations is expected to total nearly $1 billion.
Additionally, the report found that:
Craig Hospital purchases a vast majority of goods and services within the state and locally in the Denver Metro region. Nearly six-out-of-seven dollars spent by Craig Hospital on nonlabor operations stays within the Colorado economy.
In FY 2013, Craig Hospital employed 955 full-time and part-time workers, nearly 97% of whom reside in Denver metropolitan statistical area counties. The impact of Craig employees spending their salaries is estimated to add $53.5 million to the economy each year.
Given that roughly half of Craig Hospital patients come from out of state, there is an additional contribution from nonresident patient families and visitors. Based on survey responses, total out-of-state visitor spending for lodging, food, transportation, and other expenses in Colorado due to Craig Hospital is $620,237 per year. Craig contributes more to the economy than a community hospital due to the higher level of visitor spending.
“Craig has always served the community through life-changing rehabilitation work. It’s gratifying to see that our stand-alone, non-profit hospital also extends its reach so far beyond our patient base and is a driving force in the Colorado economy.”Mike Fordyce, President and CEO