UC College of Medicine Economic Impact Nearly $1 Billion Annually

CINCINNATI -- The UC College of Medicine had a $979.7 million economic impact on the region in fiscal year 2015, a new study shows. 

Extended over the five-year period of the study (fiscal years 2011 through 2015), the College of Medicine's impact on the regional economy totaled more than $4.6 billion. Conducted by the UC Economics Center, the study looked exclusively at the impact of the college, which had 2,562 full-time employees and 993 students during the 2015 fiscal year (July 1, 2014 through June 30, 2015). The study did not include any patient care activities carried out by the college's more than 750 faculty who also serve as physicians with UC Health, the university's affiliated health care system.

"This study clearly demonstrates how important the College of Medicine is to the financial health of our region. This is on top of the critical health benefits we provide through biomedical research discoveries and educating and training a significant portion of our community's doctors," said William Ball, MD, dean of the College of Medicine and senior vice president for health affairs at the University of Cincinnati.

"Each year the College of Medicine's economic impact to our region is more than three times that of the combined total impact of such notable Cincinnati institutions as the Cincinnati Museum Center and the Cincinnati Zoo plus last year's Major League Baseball All Star Game," Ball added. The Museum Center was found to have a $114 annual economic impact in 2014 while the Cincinnati Zoo was estimated at $143 million in 2013. The 2015 All Star Game's impact was estimated at between $60 million and $80 million.

In FY2015, the college spent $335.9 million on compensation and benefits to its nearly 2,600 employees. Another $372.4 million in economic benefit was generated by the impact of these take-home wages through local spending. The college also spent $129.5 million on non-employee expenses to operate the medical school, the only one in the Cincinnati Metropolitan Statistical Area (MSA). This spending had an additional indirect impact of $137.4 million through business to business transactions. Additionally, the college made more than $2.2 million in capital expenditures in FY2015 to purchase equipment to support its research and education activities. These purchases further had a $2.3 million indirect impact.

"Added together, this spending by the college provides excellent jobs and significantly adds to our local and regional economy," Ball said. 

The report cited that the college attracts significant "new" money that has a more than $2 billion total economic impact on the region during fiscal years 2011 to 2015. For example, in FY2015 more than $87.1 million came to the college in research funding from outside sources, including the National Institutes of Health and Department of Defense, various foundations and industry among other sources. Another $26 million in philanthropy came to the college in FY2015. "New" money is also considered to be grants, tuition, contracts and state funding.

In addition to its 2,562 full-time staff, the college's activities supported an additional 1,892 jobs in FY2015 within the Cincinnati MSA for a total impact of 4,454 jobs.

Compensation received by the college's employees contributes to substantial income tax revenue for the city of Cincinnati. More than $5.8 million was collected from College of Medicine employees in FY2015 due to a 2.1 percent income tax on all people who live or work within Cincinnati. From FY2011 to FY2015 more than $26.7 million was collected by the city from College of Medicine employees.

While the college's annual economic impact had been steady from FY2011 through FY2014, increasing from $915.1 million to $916.6 million, the impact increased by nearly 7 percent in FY2015 to $979.7 million.

"The UC College of Medicine acts as an important component in the health care supply chain to the Cincinnati MSA region," the study states. 

The number of degrees granted by the college has been increasing annually, rising from 341 in FY2011 to 523 in FY2015. Of the 2,190 graduates during the last five-years, about one-quarter of them, or approximately 538, have remained within the Cincinnati MSA to fill health care provider positions. 

"The College of Medicine plays a vital role in maintaining and growing the physician workforce of Cincinnati. Many of our excellent graduates and residency program trainees build strong relationships within this community, realize how wonderful Cincinnati is and choose to stay here when their education or training is completed," Ball said.

Of the 169 students who received medical degrees from the College of Medicine in May 2016, 41 students have started their postgraduate medical training in Greater Cincinnati. Another 28 are in residency programs elsewhere in Ohio.

The number of students at the College of Medicine also is expected to rise with the fall 2015 addition of a bachelor of science in medical sciences. The program attracted 40 students in its first year and this fall will have 70 students in its second class. The undergraduate program is the first in the college's nearly 200-year history and is one of the first at any of the country's 145 accredited medical schools. Graduates are expected to go on to seek advanced biomedical graduate degrees and become doctors, scientists, veterinarians or other advanced health care practitioners.

This is the first time the college looked exclusively at the economic impact of its research and educational activities. Previous studies performed looked at the broader economic activities of the UC Academic Health Center, which includes the Colleges of Allied Health Sciences, Nursing and Pharmacy in addition to the College of Medicine. Another previous study looked at the economic impact of the college and its affiliated hospitals, including UC Medical Center and Cincinnati Children's Hospital Medical Center.

The complete study can be found online here.