Expanding medical residency programs in Arkansas could generate $465 million in economic activity while addressing the state’s growing physician shortage, according to a new report by Bentonville-based Heartland Forward.
On Monday (March 17), Heartland Forward released “The Economic Contributions of Medical Residencies to Arkansas,” a 6-page report concluding that by adding 275 new medical residents over six years, the state can strengthen its health care system, boost economic growth and improve health care access.
“Adding new medical residencies in Arkansas will help propel the lasting change that access to high quality health care provides,” said Alice Walton, founder of the Alice L. Walton School of Medicine and Heartland Whole Health Institute. “Expanding residency programs will permit more Arkansas M.D. graduates to remain in the state so that people may live healthier and happier lives and strengthen our communities.”
According to the report, 35% of the state’s doctors are older than 60, and limited medical residency programs could lead to greater access gaps and hinder economic growth driven by the health care sector.
“Arkansas is at a critical juncture. Without more medical residencies, we risk facing a significant physician shortage,” said Ross DeVol, chairman and CEO of Heartland Forward. “Expanding these programs will not only attract top medical talent but also create a lasting economic engine for the state.”
Following are key findings in the report.
• Each new resident contributes $482,000 annually in economic impact, which exceeds the $115,000 annual cost of training.
• Expanding residency programs offers a return on investment of more than four times the initial cost while improving health care access.
• Adding more medical residents could increase labor productivity by $54 per worker annually, benefiting the overall economy.
• States with stronger graduate medical education (GME) programs tend to have better health care outcomes, higher physician retention and increased innovation in the medical field.
The report was based on economic modeling and data from the Center for Medicare and Medicaid Services (CMS) and Accreditation Council for Graduate Medical Education (ACGME).
Heartland Forward recently helped broaden health care access through its telehealth initiative, which trains librarians to help community members prepare for telehealth visits.
The organization also recently released a report with the University of Arkansas College of Engineering showing how strengthening science, technology, engineering, and math (STEM) education could add $3.9 billion to the state’s economy and create 19,000 new jobs by 2038.