|
|
Web posted
Monday, February 9, 2004
New hospital poised to lead Mat-Su growth
By Chas St. George
For the Journal
PALMER - In a time when the state of Alaska is downsizing spending, and integrating agency efficiencies, the state's fastest-growing area is charging full steam ahead with some efficiencies of its own that could translate into very big changes for residents of the Matanuska-Susitna Borough.
Through the integration of a hybrid merger between Valley Hospital Association and the Dallas-based, private-sector hospital management group Triad, two outcomes are already apparent. First, the impact of this merger will result in an economic boom that has a history of attracting better paying-jobs over a longer period of time. Triad and Valley Hospital have agreed to begin a joint venture project to build and operate a new 74-bed, state of the art hospital. Just the construction phase of the project will mean nearly 700 new jobs.
Second, the level of health care for residents in the Valley requiring specialized medical attention will no longer be available only in Alaska's medical hub, Anchorage. The new acute care hospital should be completed by May 2005. It will be able to provide a number of expanded primary care services that haven't been available in the Valley before. What that means is more than 1,000 new jobs in a sector that is highly specialized and well paid.
The boom...
<
| [an error occurred while processing this directive] |
/B>
Last February, the Mat-Su Borough released an economic impact assessment statement of the new Valley Hospital/Triad project. The assessment, prepared by Anchorage-based Northern Economics Inc., provided a snapshot of what the development of this new hospital will mean to the communities surrounding it. Among its conclusions:
Before any construction can get under way, a decision needs to be made about who will provide both water and sewer. The new hospital site is located at the intersection of the Glenn and Parks Highways, right between the cities of Palmer and Wasilla. Both cities have submitted proposals to link their water and sewer infrastructure to the new site. Both proposals are under review with the Regulatory Commission of Alaska at this time.
On Jan. 22, Congress helped pave the way for whichever city receives the bid. Included in the National Omnibus Spending Bill is a provision that will pay for 75 percent of the cost to link the infrastructure to the site. Right now, the cost estimates for extending the sewer and water range from $6 million to $6.5 million.
The outcome translates into expansion, development and annexation opportunities for the city that is awarded the contract. The borough says the RCA should have a decision by April, and borough officials say they are hoping that Valley Hospital Association will be able to break ground on schedule in May.
The first phase construction output for the new facility is estimated at $63.7 million. The construction will require about 680 new jobs.
Valley Hospital anticipates the annual cost of operating the new hospital will be an additional $83 million.
The hospital is expected to generate about $106.5 million in annual revenues.
The borough is expected to benefit by collecting about $1.3 million in property taxes annually.
Hospital officials say they will need to double the number of physicians - add 55 new doctors - in order to keep up with the expected demand of the new facility. Add to that the fact that up to 1,200 new medical specialty jobs are anticipated in order to support the health care needs of the community. These new jobs draw higher than average wages with benefits. An estimated $16 million annual payroll should have a big impact on both the housing and retail sectors of the Palmer-Wasilla economy.
Elizabeth Ripley, Valley Hospital's director of marketing and public relations, said that the ripple effect of that kind of payroll goes a long way in the community.
"If you apply the marketing rule of thumb that each payroll dollar is equal to seven spending dollars in the community, then the that translates into a big shot in our community's economic arm," Ripley said.
One of the gaps that this new medical economic engine is already trying to fill is how to attract the medical professionals that will be needed when the new hospital opens its doors in 2005.
According to Valley Hospital's Vice President for Human Resources, Patsy Crofford, the recruiting problem is one that is shared with health care providers throughout Alaska.
"Typically, we have to look for physicians outside the state. That's been going on for years," Crofford said.
"The process of recruiting from Outside can be very expensive. There are airline costs for candidates and their families to see if they truly want to move to Alaska. Then you have to add in relocation costs."
Crofford says sometimes there are even more costs.
"There have been times when we've had to bring in recruiters. The fee these recruiters charge is equal to 20-30 percent of the physician's annual salary."
"Now, we're pressed to keep up with the growing demand for clinical specialists like registered nurses, nursing assistants, radiology technicians and pharmacists," Crofford said.
She added there's no doubt that all that demand has an effect on the existing professional market in Alaska.
"We know that there are a good number of clinical specialists working in Anchorage who choose to live right here in the Valley," she said. "What we're hoping is that some of these professionals will choose living and working in the Valley over making the daily commute."
Valley Hospital does have a long-range plan to address the staffing problem. VHA and other medical providers in South Central Alaska are pushing hard for the University of Alaska system to expand its clinical specialty programs to help fill the gap that will grow along with the population. The Mat-Su School District and Alaska Job Corps have already developed entry-level certified nursing programs. And the School District is preparing to roll out a certified coding and billing education program soon.
"We're going to need these young people to be ready to go to work within the next five years, Crofford said. "Jobs will be waiting for them ... well-paying jobs with good benefits."
|
|
