TALLAHASSEE, Fla. (WTXL) — The Office of Economic Vitality conducted the initial economic impact assessment related to the potential TMH-FSU merger.
- OEV calculated the potential economic impact as over $3.64 billion over the next 30 years, creating over 900 jobs.
- Advocacy groups against the merger said they still believe key data is missing from the study.
- Watch the video below for a break down of the figures.
BROADCAST TRANSCRIPT:
The Office of Economic Vitality has identified the economic impact of the TMH-FSU merger as over $3.64 billion over the next 30 years.
I'm Maya Sargent, your neighborhood reporter in Downtown Tallahassee, breaking down these numbers and what industries could see impact following the potential merger.
Following the announcement of the final details of the TMH-FSU merger earlier this month, we received lots of questions from you asking how those numbers were calculated, so we decided to do some digging.
"So it's not just the direct spending at the point that the investments were being made, but how that has a ripple effect in the economy over a period of time," said Director of the Office of Economic Vitality, Keith Bowers.
A potential economic impact of over $3.64 billion with the creation of over 900 jobs over the next 30 years, that's what the OEV has calculated for the TMH-FSU merger.
Bowers said they used a model from the Bureau of Economic Analysis to determine the economic impact for Tallahassee, starting with director investments per the MOU. That includes FSU paying $109 million over the next 30 years, and an additional investment of $250 million by the end of 2034.
Then looking into what Bowers called the "ripple effect."
Can you describe that ripple effect, how it starts from direct spending and then how you can see that impact?
"So the direct spending, again, would be in the direct operations, the direct investment into the health care center," said Bowers. "So we start with those jobs that will be created in research, any clinical services or health care services."
Bowers said they then look at indirect impacts, including boosts to industries like construction and vendors, and then induced spending.
"So we realized that once those investments are made, they spill over into our economy through small businesses," said Bowers. "When people jobs are created, they spend those wages in our community."
Following the announcement earlier this month, ABC 27 spoke with community group Tallahassee ALERT who said they still believe there is key data missing from the study.
"I think we're interested in seeing some of the numbers in terms of health care. Are there any guarantees to do things like expand access to clinics, cut down ER wait times?" said Melanie Andrade with Tallahassee ALERT.
The MOU does state that funds will be used to "develop clinical space" but not by how much.
The City Commission still needs to vote on the sale of TMH from the City to FSU. That vote is set to take place on January 14.
Earlier this month, the City Manager said that if it's approved. That will start the process to draft up the final contract, that will need to be voted on again by the Commission in order to pass.
In Downtown Tallahassee, Maya Sargent, ABC 27.
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