MDH study determines Springfield’s economic impact is $16.1 million

January 08, 2016

SPRINGFIELD, Minn. — A recent report from the Minnesota Department of Health’s (MDH) Office of Rural Health and Primary Care determined Mayo Clinic Health System in Springfield has a $16.1 million economic impact on Brown County in Minnesota.

“A vibrant, active medical center is an important part of the community infrastructure. It’s an economic engine for our service area,” says Scott Thoreson, Mayo Clinic Health System in Springfield administrator. “We strive to provide the types of services that are appropriate for our setting, and we’re always looking for new ways to deliver existing services that benefit our community residents.”

MDH summarized Mayo Clinic Health System in Springfield accounts for $8.3 million in total income impact, as well as $7.8 million through factors like health care spending and spending in other sectors of the county’s economy. Additionally, MDH found Mayo Clinic Health System in Springfield provides 75 actual jobs in Brown County and another 38 jobs because of the medical center’s presence and activities.

Officials stressed the importance of both the fiscal and health benefits. “Every health care service provided locally benefits the community twice. It improves the health of the people and it improves the health of the economy,” MDH stated in the report. “A strong health care sector promotes job growth within other industries and attracts retirees and young families.”

Overall economic impact of the health sector in Brown County, which includes hospitals, doctors, dentists, nursing and protective care, pharmacies, and miscellaneous health and medical services, is more than $204 million, per MDH’s findings.

“A prosperous health sector contributes to the economic health of the community,” MDH added in its 15-page document. “Ten new jobs in the health care sector create three non-health care jobs. $100 of income earned in the health care sector leads to another $19 earned in other sectors.$1 spent on health care leads to another 45 cents spent in other sectors.”

The report used direct, indirect and induced impact measures to determine Mayo Clinic Health System in Springfield’s economic benefit. Direct impact refers to changes made by the medical center, such as new services or facilities. When the medical center supplies a direct impact, its purchases of labor, land, and other goods and services (inputs) are altered — considered an indirect impact. The direct and indirect impacts influence a cash flow change to area households, and those households adjust their consumption accordingly, which is known as an induced impact.

The data used in the report are from 2013.


Mayo Clinic Health System consists of clinics, hospitals and other facilities that serve the health care needs of people in more than 60 communities in Georgia, Iowa, Minnesota and Wisconsin. The community-based providers, paired with the resources and expertise of Mayo Clinic, enable patients in the region to receive the highest-quality health care close to home.

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