Ochsner LSU Health makes huge economic impact on Caddo Parish


SHREVEPORT, La. (KTAL/KMSS) – A new report shows that Ochsner LSU Health has made a significant impact on the economy in Caddo Parish.

The findings, which were released on Wednesday, showed that Ochsner LSU Health had a major positive impact on Louisiana and regional economies while expanding access to quality healthcare to residents across the state including the Shreveport area.

Ochsner LSU Health was formed in October 2018 when Ochsner Health and LSU Health Shreveport partnered to manage two former charity hospitals, a network of clinics and health centers and a physicians group, all in North Louisiana.

The study, which was conducted by economist Dr. Loren Scott of Loren C. Scott and Associates, assessed the economic impact this partnership has had on the regional economy, specifically in Caddo and Ouachita Parishes, as well as the overall state economy.

In Caddo Parish, business sales impacts are up 54 percent, household earnings are up 52 percent and local taxes of more than 43 percent with a job multiplier factor of 2.6.

The average wage of these jobs is $63,312 versus the Parish average of $47,944. In Shreveport, Ochsner LSU Health has increased its full-time employment by 32 percent.

Scott said, “When a decision is made by a firm to create a new job, a chain reaction is started which works its way through the economy. This chain reaction causes even more jobs to be created. Think of the parish economy as a large economic pond. Into this pond is dropped a rock labeled ‘Ochsner LSU Health Shreveport.’ When that rock hits the pond, it sends ripples all the way to the edge of the pond. It is these ripples that are referred to as the ‘multiplier effect.’ ”

Scott added, “Importantly, these gains came at a time when the state economy was being hammered by COVID-19 and a depressed energy sector.”

Capital spending in Caddo Parish is up 15 times, from $3.5 million in 2018 to $54.2 million less than three years later. Ochsner LSU Health also increased operational spending in Caddo Parish by 40 percent, or by $192 million, in that same time frame.

The partnership generated nearly $1 billion in sales at businesses in the Parish, just over $30 million for local government treasuries, boosting impacts by more than 54 percent.

Scott said, “As a result of the extra effort to serve this underserved market, the partnership’s Medicaid patient count has increased significantly in just the first two years after the transition. “There has been a rather remarkable 21% increase in service to the Medicaid population since the transition to the partnership. Importantly, expensive emergency room visits by Medicaid patients are down 25% since the transition. This is because more clinics are now available to this population, so they can take this less expensive way to receive care.”

In Shreveport and Caddo Parish, the partnership includes Ochsner LSU Health Shreveport’s academic medical center on Kings Highway, with 452 beds and north Louisiana’s only Level 1 trauma center.

The partnership also includes St. Mary Medical Center, with 122 beds for women and children, a diagnostic and imaging center, a neurology and neurosurgery center, and several other clinics.

In addition to its established clinics at its Kings Highways campus, Ochsner LSU Health also operates new clinics in Caddo Parish: Internal Medicine and Pediatrics providing primary care at Provenance, Primary Care at Fern Avenue, a Community Health Center on St. Vincent Avenue, Asthma Allergy and ENT and two Urgent Care facilities. It also opened Louisiana Behavioral Health in partnership with Oceans Healthcare in January 2021.

Stay up to date with the latest news and weather by downloading the Arklatexhomepage News App from the App Store or Google Play.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Loving Living Local 600x600

Don't Miss