140 Lincoln Avenue, Haverhill, Massachusetts 01830 978-374-2000
HAVERHILL, MA, January 27, 2014 —Merrimack Valley Hospital, part of the Steward Health Care System LLC (Steward), today released an economic impact report for 2010-2012, produced by the Health Business Group, an independent consulting firm in Boston. The report reveals that Steward invested the following:
•Merrimack Valley Hospital joined the organization in May 2011. Since
then, Steward has
invested $600,000 in construction and technology improvements, provided $4.4 million in
community benefits and delivered $800,000 in tax revenues to the City of Haverhill.
“Steward acquired community hospitals facing significant financial
headwinds,” explained David Williams, president of Health Business
Group. “Our analysis shows that significant investments made by Steward
had a positive economic impact on the surrounding communities.
Meanwhile, quality of care measures have improved.”
Merrimack Valley Hospital: Major Improvements and Economic Impact on the Community
The $600,000 capital investment at Merrimack Valley Hospital includes numerous capital expenditures that allow patients to receive state-of-the-art care in a community hospital close to where they live. A high quality community hospital like Merrimack Valley is not available in all areas, which causes patients to have to travel longer distances to access such treatments.
In addition to construction and capital improvements, the hospital provided $4.4 million in community benefit investments, which included sponsoring a community health fair, Latino health outreach program, senior lunches that included a healthy living program, and other additional programs. This figure also included unreimbursed Medicaid costs.
In 2011 and 2012, the hospital contributed $800,000 in local property taxes, making it the fifth largest contributor of property taxes in Haverhill. It is also a significant employer in Haverhill, which generates additional economic benefits to the community. Steward pays more than typical employers in Massachusetts (the median full-time Steward job pays $47,071 in wages compared with $43,420 for Massachusetts as a whole). Steward pays all of its employees a “living wage” of $11.50 per hour, which is $3.50 more than the Massachusetts minimum.
“We are proud of the progress we have made and we will continue to make investments at Holy Family Hospital and Merrimack Valley Hospital to meet the evolving needs of our patients in this area,” explained Lester Schindel, president of both hospitals.
As a system, Steward has committed $600 million in new capital that directly and indirectly supported approximately 33,000 jobs, generated nearly $35 million in local real estate taxes and was responsible for $8.4 billion of economic impact in 2011 and 2012. In addition to direct impacts, Steward creates secondary benefits as employee and supplier spending ripples through the economy to local businesses such as grocery stores, auto dealers, dry cleaners and others.
Steward’s integrated community care model closely coordinates patient care among primary care physicians, specialists and other related healthcare providers in the system. Steward’s network includes over 3,000 physicians, 11 acute care hospitals, home care, an imaging operation, and a number of other post acute services. Patients are able to see their primary care doctors close to where they live and they are referred to specialists within the Steward system when needed. For patients, this means that their medical records are shared, their doctors are talking to each other, unnecessary duplication of tests can be avoided, and all levels of care are seamlessly integrated to meet personal needs.
In 2013, all Steward acute care hospitals earned an “A” grade from The Leapfrog Group, a quality and safety rating that shows how well hospitals protect patients from accidents, errors, injuries and infections. As the report notes, “quality is a significant contributor to economic impact because patients who receive high-quality care are able to live healthier, more productive lives and contribute to the economic performance of their employers and families.”
This economic impact report was submitted to the Office of the Attorney General of Massachusetts, which has oversight authority of the Steward Health Care System.
To read the full report, please visit: www.steward.org/economicimpact.