Fairview Health Services is a nonprofit organization providing health services in the state of Minnesota. Fairview’s activities create an economic impact beyond its own operations, and it is committed to being a strong contributor to the local economy. Ecotone worked with Fairview to identify how much economic activity Fairview contributed to and supported in 2019
What is an Economic Impact Report?
Ecotone created the economic impact report using the IMPLAN economic impact model, a model which estimates regional economic impact by a given business, painting a picture of how money flows through a given area.
The economic impact is calculated by taking into account the direct, indirect and induced effects. Direct effects are values produced by an organization’s activities alone. Indirect effects are values produced by the supply chain of an organization. For example an organization’s suppliers purchase goods and services from other producers within their supply chain. These other producers, in turn, purchase goods and services themselves. All of these supply chain effects are indirect effects. Induced effects are value produced by the household spending of an organization’s employees and the employees of their supply chain. This can include all those aspects of life people may spend money on, such as apartment rent, going to restaurants, etc. The effects on these industries are induced by labor income.
So what is Fairview’s economic impact?
In 2019 Fairview contributed to and supported over $12.5 billion dollars of economic activity and for every $1 dollar in Fairview services provided, there was $2.16 worth of value supported in the Minnesota Economy.
Top impacted industries
- Insurance carriers
- Other real estate
- Owner occupied dwellings
- Insurance agencies, brokerages and related activities
- Employment services
- Monetary authorities and depository credit intermediation
- Management of companies and enterprises
- Management consulting services
- Legal services
Fairview Health Services As An Anchor Institution
Fairview is an important part of its community, with its decisions having an economic impact that extends beyond itself (as shown in this report). The effort put forth by Fairview to spend locally helps bolster the Minnesota economy and supports local businesses, jobs and households.
In addition to this economic support to the Minnesota economy, Fairview is also part of the healthcare anchor network. The healthcare anchor network is 60 healthcare systems working together to create equity in healthcare by addressing the racial and economic disparities that cause inequity in healthcare.