Document Type

Report

Publication Date

4-2017

Research Center

Center for Economic Development

Abstract

This report presents an analysis of the local economic impact of the MetroHealth System’s campus transformation. The MetroHealth System (“MHS”) Board of Trustees endorsed a campus transformation plan for an $855 million capital project, which includes cost projections for various aspects of the project, including design, construction, and equipment. The transformation plan covers a period of nine years spanning 2015 to 2023. The project involves several new buildings, including a 12-story hospital, a large parking garage, and a central utility plant. The transformation also calls for demolishing outdated buildings to increase the hospital campus’ greenspace and improve its network of internal roadways. While a major component of the transformation plan-the Critical Care Pavilion Expansion-was completed in 2016, over 52% of the costs will be incurred in 2019 and 2020 (see Table 1 in the Summary for capital expenditures by year). The physical transformation is made up of four strategies and tactics designed to enhance the hospital system and its facilities: (1) comprehensive anchor facilities distributed geographically, (2) ambulatory centers disbursed throughout Cuyahoga County, (3) capital-light primary access facilities, and (4) a state-of-the-art main campus.

MetroHealth System (“MHS”) opened in 1837 as City Hospital, becoming the City of Cleveland’s first public hospital. As a public institution created in response to many Clevelanders’ inability to afford basic medical care, the mission of City Hospital was to act as a safety net for Cleveland residents and provide quality healthcare to all, regardless of their ability to pay. Today, MetroHealth is an essential health system in Cuyahoga County, with over 1 million patient visits annually between 2012 and 2016. While the overall population of the county continues to decrease, the number of patients seen at MHS has continued to increase, demonstrating the hospital’s position as an important part of the community.

This report details the economic impact analysis of the MHS campus transformation construction phases on both the City of Cleveland and Cuyahoga County. The economic impact measures employment, labor income, value added, output, and taxes for the two geographic areas. These components are disaggregated into direct, indirect, and induced impacts. All data in this report is in 2015 dollars which was the year construction began.

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