More med residents could bring Arkansas a $465M boost
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A new report by Bentonville nonprofit Heartland Forward estimates Arkansas would see $465 million in economic activity if it added 275 medical residents over six years.
Why it matters: "Arkansas faces a physician shortage that could become a crisis if we don't take action today," Heartland Forward's Ross DeVol told Axios.
- Many of the state's physicians are approaching retirement age. The state has also opened medical schools in Fort Smith and Jonesboro plus the upcoming Alice L. Walton School of Medicine this year in Bentonville.
- That means the state is setting itself up to educate and graduate medical students who then may have to go out-of-state for a residency, he said.
Context: Adding residency slots is a formal goal of NWA health care and community leaders and a recommendation from the Northwest Arkansas Council.
- Washington Regional Medical Center and the University of Arkansas for Medical Sciences Northwest Regional Campus are on their way to adding 82 residents with the help of state money.
The intrigue: Regions with more residents have more physicians willing to try new approaches and innovations as they tend to be younger doctors, which can lead to overall better care, DeVol said.
How it works: The report factors in money the residents will spend throughout their life on a doctor's income, patients spending money on health care and the economic impact of having a healthier community.
Between the lines: Adding residency slots is a challenge in part because federal law caps federal funding for residency programs at however many slots they had in 1996.
- Any additional slots have to be paid for by the hospital, state or philanthropy. New hospitals or programs have five years to add slots until the federal government stops paying for new ones.
Yes, but: Heartland Forward's report estimates that a residency slot costs $115,000 a year for the resident's salary and educational costs.
- But after a roughly three-year residency, the doctors generate about $500,000 a year in economic activity once they're practicing.
What's next: While philanthropy could support residency programs in Arkansas, it's unlikely that such programs will be able to rely solely on charitable support, and meaningful change will require more state or federal dollars, DeVol said.