EXECUTIVE SUMMARY

According to Heartland Forward’s estimates, gradually adding 275 new residents over six years to the state’s labor force could lead to an additional $465 million in economic activity in Arkansas. This impact of $465 million, spread over 963 resident-years, equates to more than $482,000 per medical resident per year. Given the high average output per worker associated with medical residents, it would take 586 workers producing at the state’s average output per worker, working for six years, to generate the same level of economic activity.

According to the Center for Medicare and Medicaid Services (CMS) cost reports for 2021, the average cost per resident paid by CMS in Arkansas was approximately $115,000 annually. Using this estimate, the resulting return on investment could be over four times the initial investment. Additional benefits are felt through output per worker, a measure of worker productivity. An additional 275 residents over 6 years could increase labor productivity by $54 on average per year due to increased access to health care as well as increased potential for health-related innovation.