ECONOMIC IMPACT OF THE UNIVERSITY OF ROCHESTER MEDICAL CENTER ' S STRATEGIC PLAN

The University of Rochester Medical Center (URMC) plays a major and vital role in the Rochester area's 21st century economy. In 1996, URMC created a 10-year Strategic Plan for 1997-2006. At the beginning of that time frame, URMC was the fourth largest private employer in the Rochester region with full-time equivalent employment of approximately 7,800. As a result of that plan, URMC now has full-time equivalent employment of approximately 12,700, and today is the largest private employer in the Rochester region.In 1997, the manufacturing sector accounted for more than one- fifth of employment in the Rochester Metropolitan Statistical Area (RMSA).* By 2007, less than 15% of employment is in this sector. Over the past decade, education and health services education has risen from 16% to 20% of the Rochester region's employment. URMC has been a major contributor to this growth and change. Employment is one aspect of the transition from a manufacturing based economy to one where higher education and health care play major roles. Another aspect is the creation of knowledge through research. The latter has become increasingly central to the economic vitality of the Rochester region today and for the future. Recently URMC announced a Strategic Plan for 2007-2012 that highlights many areas for growth, including an ongoing commitment to biomedical research. This research area has the potential to serve as both a catalyst and a resource for the region's technology-based commercial sectors. While stimulating research, URMC's new Strategic Plan also has implications for local employment. This report provides: ô Baseline economic and fiscal impacts of URMC. ô Estimates of the economic and fiscal impact of the new five-year Strategic Plan, including: o Estimates of the economic impact for 2012.

Estimates of the economic impact for 2015. In calendar year 2006, URMC was responsible for almost 20,000 jobs (full-time, part-time, and time-as-reported) in the Rochester region for a total payroll of more than $860 million. Of the 20,000 jobs, CGR estimates approximately 9,200 of them fell in the traded sector, accounting for a total of $500 million in wages.* During the Fall 2007 semester, there were approximately 1680 full- and part-time students plus more than 700 fellows and residents. CGR provides an estimate of the economic and fiscal impact URMC has today by considering four main components - URMC capital expenditures and purchases, employees, students, and visitors. CGR estimates the current economic impact of the traded sector of URMC on the RMSA. The direct economic impact consists of the actual expenditures of URMC in the community. Spillover expenditures result from the follow-on spending of the recipients of the direct expenditures.† Results of analysis on the traded sector are as follows: ô Overall, URMC is responsible for $742 million in wages, both direct and spillover, in the Rochester region. ô These wages translate into almost 17,000 jobs (direct and spillover).ô The spending of employees and URMC suppliers generates income and sales tax to New York State and sales tax to the local community of more than $55 million. The recently unveiled URMC Strategic Plan involves the capital expenditure of more than $300 million in the next five years for the construction of three buildings: Ambulatory Surgery Center (ASC), Clinical and Translational Sciences Building (CTSB), and Pediatric Replacement and Imaging Sciences Modernization (PRISM).* The economic and fiscal impact is as follows: ô The construction phase will result in an additional 1,430 jobs annually, on average (both direct and spillover) totaling 7,000 over the five years of the Strategic Plan. Note: the annual economic impact varies depending on the capital expenditures for the year. ô The cumulative effect of the construction period generates almost $270 million in wages (both direct and spillover). ô The construction period provides for a little over $19 million in NYS and local taxes (both sales and income). In addition to the construction of the three new buildings, the Strategic Plan calls for the creation of the Integrated Disease Programs (IDPs) and Innovative Scientific Programs (ISPs), which will involve recruitment of additional faculty and support staff. The PRISM and ASC buildings also will require staff once construction is complete.download