WINSTON-SALEM — Wake Forest Baptist Medical Center has been credited as being the main economic engine of Forsyth County for several years, according to local civic and elected officials.
Just how big an economic role -- $1.9 billion in fiscal year 2011 just from its operations in Forsyth County -- was cited Monday by the center in a study it commissioned by an Ohio research group. The center's fiscal year ended June 30, 2011.
The study also determined Wake Forest Baptist has 13,588 full- and part-time employees -- the county's largest workforce. The headcount released Monday was almost 1,000 more than the 12,600 the center has been stating in the recent past.
Battelle Memorial Institute measured the center's economic impact in three categories: direct, indirect (primarily suppliers) and induced (defined as revenue, wages, jobs generated by industry-to-industry transactions, and employee and supplier spending on local goods and services).
When those three categories are combined using an indirect and induced multiplier calculation, the center's economic impact on Forsyth reaches $3.36 billion.
Part of the center's goal with the study is demonstrating the cumulative influence of its various operations for the community, said Dr. John McConnell, its chief executive.
The study provides not only the first economic analysis of the center since the 1970s, but measuring sticks for future growth that will require community assistance to accomplish, McConnell said. Wake Forest Baptist commissioned the study in April and the Battelle began its research in June.
When asked why the center commissioned the study, McConnell said, "We actually take very seriously our role in economic development within this region."
"We wanted to help the community better understand our intersecting lines, and that we believe we have chosen the right research paths to not only improve health care, but also generate high-paying jobs for the region."
For example, the center is focusing its research on specific forms of cancer, as well as cardiovascular disease, diabetes, neurological diseases and obesity. The medical center is also developing and commercializing treatments for the diseases, which can mean hundreds of millions of dollars in revenue.
"We want to help the community at large understand what other things may have to occur in infrastructure and higher education within the region to support the level of impact that institutions like ours can provide," McConnell said.
Overall, the report says Wake Forest Baptist generates nearly $1.76 in county revenue for every $1 it spends in the county.
Counting 5,301 indirect and 8,004 induced jobs, Wake Forest Baptist is associated with -- and gets credited by Battelle for -- 26,893 jobs in Forsyth.
Martin Grubber, a research leader with Battelle, acknowledged that some of the indirect and induced jobs also are associated with Forsyth Medical Center, other local medical facilities and the community as a whole.
"Wake Forest Baptist Medical Center represents an exceptional asset for the state of North Carolina," Battelle said in its conclusion.
"It is well-positioned for continued leadership in the science- and technology-driven 21st century economy, and the state and region are likely to see significant further impacts and benefits from the institution in the future."
Novant Health Inc., which operates Forsyth, responded Monday to the Wake Forest Baptist study by saying it "also is a significant driver in the local economy as demonstrated by its investment in facilities and employment." Among the facts it cited for its Triad presence include: 5,075 full-time employees; 88 practice offices; and more than 1,300 staff physicians at its hospitals.
As tax-exempt nonprofit organizations, Wake Forest Baptist and Forsyth enjoy wide tax benefits. In exchange for providing "community benefits," they qualify for exemptions on state and federal income taxes, as well as city and county property taxes.
The study reported that Wake Forest Baptist paid $46.1 million in state and local taxes and $178.8 million in federal taxes for its direct operations in fiscal 2011.
The exemption from city and county property taxes saves the medical centers about $14.3 million a year, according to the county tax assessment office at the current property tax rate. Even though the medical centers pay sales taxes, they may qualify for a refund of that money.
Both Wake Forest Baptist and Novant argue they spend much more than the exemption in property taxes on charity care in the community.
Battelle reported Wake Forest Baptist provided $61.8 million in charity care compared with $10.2 million from the average major teaching hospital, according to the Association of American Medical Colleges. Wake Forest Baptist also is credited for absorbing $68.1 million for unpaid portions of Medicare, Medicaid and non-negotiated government programs, and $25.6 million in bad debt.
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