Hospital would bring investment, jobs and increased patient satisfaction to region and bolster Orlando′s developing life-sciences industry
LOS ANGELES — Orlando′s ability to build and sustain a life sciences cluster is growing and, according to an economic impact report released today by the Milken Institute, a proposed pediatric specialty hospital will provide an added boost.
The study outlines how the Nemours Children′s Hospital, which would take two years to build, would create an estimated 5,000 jobs during the construction phase and more than 2,600 permanent jobs once it′s open for business. This, coupled with a projected increase in Orlando′s regional wage income, from an additional $50 million in the first year to an additional $81 million after five years, would assist Orlando in raising its lower-than-national-average wage income.
"The data show that Orlando needs to broaden the quantity and quality of life-sciences assets, particularly from the private sector," said Perry Wong, senior managing economist at the Milken Institute. "The service and R&D activities of the Nemours Children′s Hospital can be a catalyst for economic growth in this industry."
The report also examines the possible impact of the proposed hospital on existing facilities and overall quality of care. Research shows that the presence of a specialty hospital actually leads to higher profits among existing general hospitals by driving down costs and increasing efficiencies. Additionally, the competition in the market promotes better-quality services and increases patient satisfaction.
Nemours, sponsor of the economic impact report, plans to invest $258 million in the construction of a children′s hospital, including neonatal intensive care units and pediatric specialties such as pediatric rheumatology, allergies/immunology and dermatology, which do not exist at current area hospitals.
The Milken Institute′s experience in biotechnology and life-sciences clusters was key to developing a methodology that could appropriately analyze the region′s economic environment, demographic growth and upcoming needs. Authors Perry Wong, Benjamin Yeo, Armen Bedroussian and Ross DeVol are members of the Milken Institute′s regional economics group.