Source: UNIVERSITY OF KENTUCKY submitted to
THE IMPORTANCE OF ACCESS TO HEALTH IN RURAL ECONOMIC DEVELOPMENT
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
EXTENDED
Funding Source
Reporting Frequency
Annual
Accession No.
1018773
Grant No.
2019-68006-29682
Project No.
KY2018-07019
Proposal No.
2018-07019
Multistate No.
(N/A)
Program Code
A1661
Project Start Date
May 15, 2019
Project End Date
May 14, 2024
Grant Year
2019
Project Director
Davis, A. F.
Recipient Organization
UNIVERSITY OF KENTUCKY
500 S LIMESTONE 109 KINKEAD HALL
LEXINGTON,KY 40526-0001
Performing Department
Agr Economics
Non Technical Summary
Over a twelve year period (2005-2016), 199 hospitals have closed in the United States, of which 94 were located in rural zip codes. These rural hospitals were either the largest employer or one of the largest employers in the community. In addition, rural hospitals tend to provide relatively higher than average wages and benefits. Communities strive to keep these hospitals open to maintain a critical healthcare option for its residents as well as an important employer to the community.When a hospital closes it is important to understand those who are most likely impacted by the closure.The long-term goal of this 3-year integrated project is to improve our understanding of the role of healthcare and a healthy workforce as determinants of local economic development in rural communities. Specifically, our working hypothesis is that while healthcare itself is an important driver of local economic growth in rural communities, it is also a significant factor in both firm and residential location decisions. Through this research we will better understand how a change in the number and type of healthcare businesses impacts changes in employment and wages of both healthcare and non-healthcare related industries in rural communities across the United States.We propose the following integrated project objectives accomplished through an exploration of big data that has been largely underutilized for rural economic development purposes:Objective 1. Measure the role of healthcare as determinants of local economic development in rural communitiesObjective 2: Estimate the role a healthy workforce plays in firm location and retention decisions.Objective 3: Explore regional differences in the relationship between the healthcare industry and rural economic development.We will examine these issues using the U.S. Census Longitudinal Business Dataset and the Annual Services Survey among others available at the University of Kentucky Federal Statistical Research Data Center.We hypothesize that if there is a significant relationship between the healthcare industry and non-healthcare related industries then there are opportunities for these industries to work collaboratively to improve economic opportunities in rural communities. Expected long-term outcomes from this project would include the ability to attract and retain industry, higher wages, a healthier workforce, and population in-migration. By focusing our Extension efforts in two different regions in the US (Kentucky and Nevada), we can provide educational materials and best practices to promote this collaborative behavior based on the region's specific conditions.
Animal Health Component
0%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60860503010100%
Goals / Objectives
The long-term goal of this integrated project is to improve our understanding of the role of healthcare and a healthy workforce as determinants of local economic development in rural communities.Objective 1. Measure the impact of healthcare and workforce as determinants of local economic development in rural communitiesResearch ObjectivesR1A. Understand the factors (including healthcare) that economic development professionals perceive as important in attracting and retaining industry.R1B. Describe the hospital market in rural communities measuring changes in the number and ownership of hospitals from 1987-2015.R1C. Describe changes in non-hospital healthcare employment and wages in rural communities over time controlling for hospital closures, openings, or changes in the level of coverage.R1D. Measure changes in obstetric care when a hospital closes and estimate the impact on changes in residential population.R1E. Describe changes in employment and wages for other industries when a hospital closes, opens, or remains the same. In addition, determine the role healthcare (either hospital or other health-related establishments) plays in firm location decisions.Extension ObjectivesE1A. Strengthen the relationship between the healthcare industry and local economic development professionals through the development of advisory boards and coalitions.E1B. Create educational materials and trainings for both the healthcare and economic development audience including educational webinars, economic impact analyses, templates for news articles, press releases, videos, press releases, etc.Objective 2: Estimate the role a healthy workforce plays in firm location and retention decisions.Research ObjectivesR2. Identify indicators of a healthy workforce that firms and economic development professionals use to market a healthy and productive workforce. Estimate the influence of a healthy workforce as an amenity for industry attraction.Extension ObjectivesE2A. Identify and/or create health promotion and education programs through Cooperative Extension and health departments designed to address those factors identified in R2.E2B. Identify affordable and effective workplace wellness programs for a local employer or a group of local employers to implement to improve the health of the workforce.Objective 3: Explore regional differences in the relationship between the healthcare industry and rural economic development. Research ObjectivesR3A. Test the regional differences in the relationship between healthcare and rural economic development. Kentucky and Nevada represent varying industry, resident, and geographic differences.R3B. Conduct two case studies in both Kentucky and Nevada by exploring places where the relationship between the healthcare and non-healthcare sector has been notably strong as well as in a place where no relationship currently exists.Extension ObjectivesE3. Using the tools developed in E2A and E2B, work with the communities identified through R3B to strengthen the relationship between the healthcare industry, non-healthcare sectors, and economic development.
Project Methods
Objective R1AWe will create a survey for economic development professionals that builds on previous work by the PIs. This survey includes an extensive list of amenities that a firm might consider when relocating. This simple survey will be disseminated to KAED's membership list through an online Qualtrics platform.Objective R1B. Describe the hospital market in rural communities, measuring changes in the number and ownership of hospitals, for the years 1987-2015.The project will use data only available in a secure Federal Statistical Research Data Center (RDC) at the University of Kentucky. We will access the Longitudinal Business Database, the Integrated Longitudinal Business Database, the Service Annual Survey and the Census of Service Industries to address all remaining objectives. These data will be merged with secondary data from numerous publicly available sources to perform the statistical analysis to control for county-level factors affecting hospital and healthcare markets. The sources include:American Community Survey from the Census BureauOccupational Employment Statistics from the Bureau of Labor StatisticsMedicare Fee-For-Service Provider Utilization and Payment Data: Physician and Other Supplier Public Use File from the Center for Medicare and MedicaidNational Center for Health Statistics county-level health statisticsCounty Health Indicators, Robert Wood Johnson FoundationHospital Data. We will extract data from the LBD for each hospital establishment. The LBD includes information on the number of employees and total payroll. Indicators in the file allow us to identify if a hospital is a standalone unit or part of a multi-establishment firm. From the legal form of organization variable we would know if the hospital was for-profit or non-profit. From the LBD we will identify hospitals which enter and exit the community. We also tabulate the change in employment for a hospital over time to see expansion and contraction of the hospital. We will tabulate the number of ownership changes.We will collect data including hospital location and the legal ownership type (non-profit or for-profit). We will include hospitals that are non-Federal, general medical and surgical hospitals with at least one employee. We will measure changes in size by number of employees and wages. Finally, we will count the number of hospitals entering, exiting and continuing in a market overtime. We explicitly are interested in identifying markets where, after a hospital exit, no hospitals existed in the community as well as a hospital entrance where the hospital is now the sole hospital in the community.We also want to compile a group of counties or HSAs where there is no hospital or has continuous presence of one hospital. This group will be used as a comparison group when doing difference-in-difference regression models.We will also compare this community to the next closest one with a hospital and see if that community had an increase in hospital employment.Objective R1CWe will summarize healthcare employment data from the establishment-level data in the LBD for the county and/or HSA. In addition, we will use employment and occupation data at the 3-digit NAICS industry-level (NAICS 621 through 622) and 3-digit SOC (Standard Occupational Classification) codes (SOC 29-1 through 31-9) from the Bureau of Labor Statistics. We will link these data to the hospital data compiled in objective R1b. From this dataset, we will run a difference-in- difference (DiD) regression model. We will look at short and long run effects of hospital exit and entrants. The short run will be one calendar year prior and post hospital event. The long run will be five years prior and post event. With a five year window we will also be able to include data from the CSI and be able to include revenue sources. For the DiD regression, we define the "treated" group as communities where the hospital event occurred. A "comparison" group will be communities where no hospital event took place five years prior or post the event of interest.Objective R1DFor working age and child-bearing age employees various aspects of healthcare may be part of the decision to live in a location. We will look at the access to obstetric care in the local hospital as a measure. These data are available at the establishment level for the Census of Service Industries. Each hospital reports the revenue by primary diagnosis by ICD-9 and ICD-10 codes. From this we can observe changes in the revenue from pregnancy and childbirth. These data are available every five years ending in 2 and 7. Using the model developed in R1C, our dependent variable will be obstetric revenues before and after a hospital closure. In addition, we will explore changes in population with changes in obstetric care to determine if the loss of obstetric care is correlated with a loss in residential population.Objective R1EWe hypothesize that the presence of a hospital might impact the presence of other non-health related establishments and wages. We will evaluate this by observing changes in firm size, wages, ownership, revenue, and employment at the 2-digit industry level before and after an exit or entrance of a hospital. For the industry data we will compile establishment-level data from the LBD. We will summarize the observations to the 2-digit (and 3-digit if appropriate) industry level for the years 1987-2015. We will also use publicly available data from the American Community Survey and the Economic Census data to collect data reflecting characteristics of the community. From this dataset, we will again run a difference-in- difference (DiD) regression model. We will conduct this analysis to test for both short and long run effects of hospital exit and entrants. In addition, we will estimate the importance of healthcare as a contributing factor to firm location decisions. We will estimate a double hurdle model to estimate the probability of non-participation, the probability of zero firms, as well as the probability of a county attracting at least one or more firms based on the presence of community characteristics including a hospital, healthcare employment as well as other local factors including tax rates, workforce characteristics, broadband access, etc.Objective R2We will include measures of a healthy workforce that firms might consider when deciding to relocate or exit a market. We expect to include health characteristics related to obesity, physical activity, drug use, and tobacco use. We will access the County Health Indicators database to collect data at the county level that best reflect the characteristics revealed as important through the survey. Those factors will then be included in the double hurdle model discussed in objective R1E.Objective R3The last research objective will involve case studies of four different communities across Kentucky and Nevada. We will identify these locations based on existing knowledge of the working relationships between the healthcare and economic development partners. Each case study must have exactly one hospital and at least one paid economic development professionals. Through these case studies we hope to identify the nature of the existing relationship between the hospital and traditional industry, the role of the hospital in the local economy, the health of the workforce, the ways in which the economic development professional markets the community, and the success in attracting new firms or retaining existing firms. We anticipate selecting one community where the relationships between healthcare and industry are strong and one where there are only weak ties, if any at all. The purpose of these case studies is to highlight best practices for building a collaborative relationship, to identify successful marketing strategies, and to highlight success stories that can disseminated nationwide.

Progress 05/15/23 to 05/14/24

Outputs
Target Audience:Target audience: other academics (largely regional scientist) Hospital leaders, economic developers, health care networks, planning agencies, elected officials Changes/Problems:Working in a federal data center requires about 5 times more time than anticipated. Without access to the internet, it can be tedious to do analysis and verify data. ThE RDC data are not as clean as hoped and this has also resulted in creating a number of criteria for inclusion and imputation. What opportunities for training and professional development has the project provided?we have provided a number of workshops and webinars highlighting strategies to better integrate economic development and health. We have presented at the national organization of State Offices of Rural health, NCHN as well as specific states including Indiana, Illinois and Wisconsin. How have the results been disseminated to communities of interest?This work was presented at the Southern Regional Science Association. In addition, the Extension materials have been presented to healthcare professionals, economic development professionals and elected officials. What do you plan to do during the next reporting period to accomplish the goals?We will finalize the remaining research objectives within the RDC. Some of our results are currently going through disclosure to then be released for publication.

Impacts
What was accomplished under these goals? We continue to make progress on the research objectives and some preliminary extension objectives. Our work in the Research Data Center has been slower than anticipated because of employee turnover and the ability to onboard new folks and get special sworn status. We have accomplished R1A, R1B, R1C, and R1E. R2 and R3 are in progress. E1A and E1B and E3 are complete.

Publications


    Progress 05/15/22 to 05/14/23

    Outputs
    Target Audience: Nothing Reported Changes/Problems:Unfortunately we had a death in the project team (Ernie Scott). in addition, Jennier Minier, Tina Studts and Andrew Own all left the University leaving only two of us who were able to access the Census Center. We now have four indivdiuals working in the RDC and we anticipate no additional challenges (barring any unexpected issues). In addition, we continue to find that the Census data are wrought with issues. It took over a year to create a final database where we feel mildly confident that the data do a decent job of capturing hospital closures and openings. While it is nice to have access to this restricted database it is far from perfect. What opportunities for training and professional development has the project provided?We have conducted workshops that highlight the important role between healthcare leaders and economic development. We have trained healthcare leaders on economic impact analsysis as well as the basic strategies for economic development (ED 101). How have the results been disseminated to communities of interest?We will not be able to disseminate until the U.S. Census clears our results for disclsoure issues. What do you plan to do during the next reporting period to accomplish the goals?if granted the extension, we will finish our analysis and finalize our case study work in Kentucky and Nevada. We will also craft Extension materials for economic development leaders to help them understand the role of healthcare in their local economy so that healthcare will be at the table for economic development decisions.

    Impacts
    What was accomplished under these goals? In the last year we have nearly finished research objectives under Objective 1 and Objective 3. We have identified changes in nonhealthcare (and healthcare) employment before and after a hospital closure. We have conducted a number of workshops related to E1A and E1B. We have not yet finished Objective 2 research objectives and as a result we have not yet started E2A and E2B.

    Publications


      Progress 05/15/21 to 05/14/22

      Outputs
      Target Audience:We are still conducting research given the significant delay from COVID and the closure of the Research Data center. Changes/Problems:This project has faced significant obstacles. Most notably, COVID impacted our ability to get into the research data center. To further exarcerbate the issue, the University of Kentucky Research Data Center went without an administrator and as a result no one could access the center. Finally, we lost two research analysts in the last 18 months, so once we were able to enter the facility we had to get sworn status for our researcher, who then left. and then this happened again. We now have someone who has been a University of Kentucky Assistant Resarch Professor, Jairus Rossi, working in the RDC, so we expect very quick progress. What opportunities for training and professional development has the project provided?The use of the Research data center is a steep learning curve but the training provided will allow us to conduct other projects much quicker in the future. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?As mentioned earlier, we plan on completing all research objectives by February 2023 and will then start building the Extension products afterwards. The proposal was built in a way that the Extension objectives could start once the research findings were finalized.

      Impacts
      What was accomplished under these goals? We are still working on many of the research objectives. We are near completion of R1B and R1C. We have conducted R1A. We anticipate we will be finished with all research objectives by February 2023. The Extension objectives rely on the research findings.

      Publications


        Progress 05/15/20 to 05/14/21

        Outputs
        Target Audience: Nothing Reported Changes/Problems:There are no changes per se. The one "change" would be to the timeline. We are appoximately one year behing because of our access to the University of Kentucky Research Data Center. We will be asking for an NCE. What opportunities for training and professional development has the project provided?This project has very much enhanced the team's understanding of the Research Data Centers and working with gigantic databases. We were able to submit another proposal to the RDC in 1/10th the time as the first proposal. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?We have so much to do. We would like to have preliminary results by the end of the next period. We will publish our results for the lay audience and conduct a webinar for the health/hospital community as well as for economic development professionals.

        Impacts
        What was accomplished under these goals? We were just awarded access to the Research Data Center at the University of Kentucky approximately 5 months ago. We were delayed because of COVID and a shift in personnel at the UK RDC. We are making great strides in Objective 1 and Objective 3. We have merged hospital closure data with individual firm level data and have started to look at descriptive statistics by Census Region.

        Publications


          Progress 05/15/19 to 05/14/20

          Outputs
          Target Audience: Nothing Reported Changes/Problems:The process for submitting an RDC proposal is extensive. The proposal in and of itself takes months to prepare and then the review process takes approximtely one year. In essence you almost have to write all of your code before you submit the proposal without seeing the data. What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?We hope to hear back from the UK RDC by the fall (it takes approximately 12 months to go through the process). We also recently acquired the Annual Hospital Association Data that will be used to look hospital ownership and utilitzaton over the last 10 years. We hope to have made progress on the first 2 Extension objectives under Objective 1.

          Impacts
          What was accomplished under these goals? We spent the first year collecting data and preparing the proposal to the Univeristy of kentucky Research Data Center. We have made progress on Objectives 1 and 2. objective 3 won't start until 1 and 2 are complete.

          Publications