Milken Institute Economic Impact Report Shows Benefit of Proposed Nemours Children's Hospital

Nemours Enterprise
Friday, February 16, 2007 @ 01:03 PM EST
by: Odette Struys
(904) 697-4186
ostruys@nemours.org

Hospital would bring investment, jobs and increased patient satisfaction to region and bolster Orlando’s developing life-sciences industry

LOS ANGELES - Orlando’s ability to build and sustain a life sciences cluster is growing and, according to an economic impact report released today by the Milken Institute, a proposed pediatric specialty hospital will provide an added boost.

The study outlines how the Nemours Children’s Hospital, which would take two years to build, would create an estimated 5,000 jobs during the construction phase and more than 2,600 permanent jobs once it’s open for business. This, coupled with a projected increase in Orlando’s regional wage income, from an additional $50 million in the first year to an additional $81 million after five years, would assist Orlando in raising its lower-than-national-average wage income.

“The data show that Orlando needs to broaden the quantity and quality of life-sciences assets, particularly from the private sector,” said Perry Wong, senior managing economist at the Milken Institute. “The service and R&D activities of the Nemours Children’s Hospital can be a catalyst for economic growth in this industry.”

The report also examines the possible impact of the proposed hospital on existing facilities and overall quality of care. Research shows that the presence of a specialty hospital actually leads to higher profits among existing general hospitals by driving down costs and increasing efficiencies. Additionally, the competition in the market promotes better-quality services and increases patient satisfaction.

Nemours, sponsor of the economic impact report, plans to invest $258 million in the construction of a children’s hospital, including neonatal intensive care units and pediatric specialties such as pediatric rheumatology, allergies/immunology and dermatology, which do not exist at current area hospitals.

The Milken Institute’s experience in biotechnology and life-sciences clusters was key to developing a methodology that could appropriately analyze the region’s economic environment, demographic growth and upcoming needs. Authors Perry Wong, Benjamin Yeo, Armen Bedroussian and Ross DeVol are members of the Milken Institute’s regional economics group.

modified: Tuesday, September 30, 2008 @ 08:01 AM EDT
created: Monday, August 06, 2007 @ 01:07 PM EDT

About Nemours

Nemours, one of the nation’s largest pediatric health systems, is dedicated to achieving higher standards in children’s health. Nemours offers an integrated spectrum of clinical treatment coupled with research, advocacy, and educational health and prevention services extending to all families in the communities it serves. Starting with Alfred I. duPont’s bequest over seventy years ago, Nemours has grown into a multi-dimensional organization offering personalized clinical and preventive care focused on children.

Nemours owns and operates the Alfred I. duPont Hospital for Children in Wilmington, Delaware and major children’s specialty clinics in Delaware (Wilmington), Florida (Jacksonville, Orlando and Pensacola), Pennsylvania (Philadelphia and Bryn Mawr) and New Jersey (Atlantic City and Voorhees). Having recently received preliminary approval from the State of Florida, Nemours will establish a new full-service children’s hospital as part of an integrated pediatric health campus in Orlando. KidsHealth.org, the world’s most visited pediatric health care Web site for parents, kids and teens, is a project of Nemours.

Nemours employs over 4,400 individuals, including 430 pediatric physicians, specialists and surgeons who cared for approximately a quarter of a million children in 2007. The organization’s goal is to align with parents, physicians, community leaders, children’s advocates and elected officials to ensure optimal wellness for every child. Additional information about Nemours can be found at www.nemours.org.