Health Care Industry Overview

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Health Care Industry Overview PHOENIX FORWARD HEALTH CARE INDUSTRY OVERVIEW Produced by the University of Phoenix TABLE OF CONTENTS Executive Summary ………………………….………………...…………. 5 Chapter 1: Introduction ………………………….………………...……... 7 Chapter 2: Health Care Sector Defined………………………………..…9 Chapter 3: History, Background & National Trends..………………... 12 Chapter 4: Greater Phoenix Health Care Industry ……………...……. 18 Chapter 5: Moving Forward to the Greater Phoenix Health Care Industry of Tomorrow …………...………………………..………….. 30 Chapter 6: Conclusion …………………………………………………... 34 References …………………………………………………………….….. 36 Contact Information……..…………………………………….………… 37 Greater Phoenix Chamber of Commerce………...………………..…... 38 Phoenix Forward Health Care Industry Overview 4 Executive Summary Health care has been a driving factor for Greater sector. In doing so, the report draws upon the Phoenix job growth in recent years, and the collective knowledge of key leaders in health region has the potential to become a national care who are vital job creators. health care hub. This report examines factors needed to spur economic growth so the health Businesses have several resource needs, care industry can reach that next level. As the including connecting with key public sector report outlines, there needs to be a focus on officials, development incentives, locating growing and retaining existing companies, in additional facility space, technical assistance, addition to attracting relocations. Over 80% of and workforce development. As the report job growth comes from companies already in notes, the biggest challenge of health care the region,1 making business retention the often leaders today is maintaining a full pipeline of overlooked but critically important economic qualified human capital ready to apply for and development strategy. The growth in local serve in available, well-paying jobs. Companies companies and workforce makes the region need help recruiting, developing, and retaining even more attractive to outside companies the best employees, so it is important to develop looking to expand here. Via this report and the a talent pipeline for the health care sector. With Phoenix Forward initiative, the Greater Phoenix Arizona leading the way in the nursing Chamber of Commerce aims to help existing shortage, this is not just about economic growth businesses scale and serve as a catalyst for but is important to the health of our economic growth. community.2 The report includes a current snapshot, as well as content on what health care Phoenix Forward is a collaborative economic may look like 5-10 years from now, particularly development initiative that aims to grow the in terms of jobs and skills likely to be in Greater Phoenix economy from within. The demand. Phoenix Forward initiative leverages the tremendous strengths and resources of key It is vital to understand what is considered a partners: Greater Phoenix Chamber of component of the health care sector for Commerce, the City of Phoenix, Maricopa purposes of this discussion. This research County and the Arizona Commerce Authority focuses specifically on health care providers, through a coordinated, strategic business health care insurers, ancillary providers, retention and expansion program. In the context educational institutions and academia, and of health care, this collaborative approach research organizations. Health care providers involves supporting local companies by encompass both health care organizations and connecting them to vital resources to help their individual health care professionals. Hospitals businesses grow and developing robust and physicians are examples of each, strategies to drive industry growth. This project respectively. After health care providers, one of is designed, developed, and driven by the the most important components of the sector Phoenix health care community. includes insurers, which consists of insurance providers and health insurance brokers. Increasing the region’s competitive edge in Ancillary providers are also present and include health care will help promote the Greater pharmaceutical, biotechnology and medical Phoenix region as an economic hub in the device manufacturers. Educational and research southwestern US and beyond, ultimately institutions constitute another major subset of leading to the attraction of innovation and the sector. These include academic higher cutting-edge health care companies. The best education; 2- and 4-year institutions, as well as way to enhance Greater Phoenix’s competitive post-graduate institutions. The health care advantages is by linking business, whether ecosystem also includes key non-governmental small, medium, or large, to essential resources. organizations (NGO). In addition to these This report helps arrive at an accurate traditional types of individuals and Phoenix Forward assessment of the needs of the health care organizations listed above, the proliferation of community, which will allow for development new and non-traditional organizations Health Care Industry of targeted solutions for local businesses in this appearing in the ecosystem has already begun. Overview 5 Some of these include technology companies Investment in people, systems, technology and and ambulatory surgery centers. Together, these infrastructure is key for continued accolades. and related organizations play a catalytic role in One study found that an all-time record level of growing the Greater Phoenix region’s health money is flowing nationally for health care care economy. information technology and digital health start- ups, but Arizona continues to capture a Understanding the history of the Greater comparatively small share of that funding. Phoenix region and the changing health care Thus, there does need to be continued support landscape are important components to for entrepreneurs, so that startups have addressing how the region can set itself apart sufficient capital to grow and create the large for capturing future growth. As the population employers of tomorrow. Additionally, perhaps of Greater Phoenix began to rapidly expand in the most important ingredient to growing the 1950s and 1960s, the demand for health care Phoenix’s health care industry across all in Phoenix and the surrounding region spectrums is education. The Bureau of Labor increased accordingly. The health care Statistics forecasts that health care and infrastructure in Greater Phoenix has grown education are the fields of the future for steadily since and the industry is expected to workers in Greater Phoenix, and a large continue this strong growth. In order for that to percentage of these new workers will come happen, it is imperative that the region directly from the region’s medical-based understands the dynamics of the health care education programs. industry and the unprecedented changes that it is currently undergoing. These include five key As noted above, the health care sector is forecast trends: hospital consolidation, telemedicine and to continue adding significant new jobs, new health technologies, aging population, particularly in dynamic regions like Greater increased job demand and new disruptive Phoenix. One key to make sure the region models. As just one example, millions of continues moving forward as a leader in health American health care consumers now use health care is having a properly skilled and trained care apps, participate in consultation via workforce. Emerging jobs and roles require new telemedicine and utilize their smart phones as a competencies, skills and training. If Greater diagnostic tool. However, due to rising costs Phoenix can be responsive to these trends and and higher deductibles, many health care supply the needed human capital, it will yield consumers will manage higher costs with new three beneficial results. First, current businesses tools and services rolled out by their insurance in the region will not be limited by an companies, health care providers and other new insufficient labor pool, which is a key reason entrants. why businesses relocate to other regions. Second, it is an excellent way to attract new Health care is a key economic industry for the businesses that want to move to an area with an Greater Phoenix region, and within that ample supply of skilled labor. Third, it creates industry, the provider sector (e.g., hospitals, collaborations and educational infrastructure specialty clinics) is the most substantial as that enable the Greater Phoenix region to be measured by size, number of jobs and economic nimble in responding to future health care roles. multiplier effect. Of the top 25 employers in Through these, health care in the region can Greater Phoenix, three are health care provider continue to grow and the entire Greater Phoenix organizations. In total, the Greater Phoenix region will benefit. provider sector contributes approximately 60,000 jobs and $8 billion to the economy. Further, provider jobs tend to skew toward high -skill, high-wage positions, which require a correspondingly highly educated workforce. Phoenix Forward The high-quality of the workforce has been demonstrated through many awards bestowed Health Care Industry upon Greater Phoenix health care providers in Overview recent years. 6 CHAPTER 1 INTRODUCTION Introduction WHAT IS PHOENIX FORWARD? Phoenix Forward is a coordinated, strategic the southwestern United States. Designed, approach to economic development that brings developed and driven by the business the resources of a collaborative partnership led community, Phoenix Forward supports local
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