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Middletown Regional Health System Growth Fuels County-wide Economic Development 

Total impact estimated at over $344.7 million and more than 2,600 jobs

Middletown Regional Health System's investment in its new health and technology campus has created a ripple effect of economic growth throughout Butler and Warren counties. A Wright State University (WSU) economic impact analysis estimates that every $100 spent by the health system in 2005 generated an additional $80 in spending by suppliers and employees. In 2005, the health system's impact on the economies of the two counties totaled an estimated $344.7 million.

"Our commitment to enhancing our communities' health extends far beyond providing excellent medical care," says Douglas W. McNeill, president and CEO of Middletown Regional Health System. "As the area's second largest employer, we are also firmly committed to supporting the vibrant economy that is so essential to the health of our region."

The WSU analysis also estimates that the health system's growth supported 2,639 full-time-equivalent positions in its facilities and in various Butler and Warren county industries in 2005. That represents an increase in direct and indirect employment of more than 515 positions since Middletown Regional Hospital launched its aggressive construction and capital improvement activity: 202 attributable to the health system's growth and 313 to construction.

"In 2005 alone, the jobs created by Middletown Regional Hospital's growth equaled two-thirds of the jobs provided by the construction project. So while construction-related

employment will eventually decline as the building project is completed, job growth from the new facilities will more than replace that loss with steady, permanent positions," says Kevin Murphy, vice-president and chief financial officer for Middletown Regional Hospital.

"In 2003, the level of projects undertaken at Middletown Regional Hospital was $2.75 million but increased to $22.95 million during 2005, a 734 percent increase," according to Leonard Kloft, director of Social and Applied Economics at WSU, who completed the analysis. "Given the large increase in these activities, job creation for 2005 will increase dramatically, thereby providing a powerful stimulus to the Butler-Warren economy."

The economic analysis, derived from a study conducted in 2005 by WSU for the Greater Dayton Area Hospital Association, accounts for three components of economic impact: direct, indirect and induced. Direct impact measures the expenditures and employment undertaken by the health system. Indirect impact measures the changes in spending and employment that result from transactions between the health system and the supporting industries from whom it purchases goods and services. Induced impact reflects spending by employees of the health system and employees of the supporting industries.