1. Madison Healthcare Forum May 4, 2011 Nation Mississippi Madison Marianne Hill, Ph.D., Senior Economist, Mississippi IHL

2. National Economy: Out of the Woods? Almost.  Private sector jobs up  Consumer spending stronger  Exports, equipment sales up Government spending falling Government spending falling Oil prices high Oil prices high Unemployment high, housing weak Unemployment high, housing weak Toxic financial assets still on books Toxic financial assets still on books

3. Mississippi Economy: Private Services Leading the Way  Jobs, sales, taxes improving  Major projects on-line  Private service jobs strong Consumers uncertain Manufacturing lagging nation Stimulus funds gone Long-term challenges on hold

4. MS Employment: Recovery Has Far to Go 4 Employment is indexed to month of peak employment level

5. Mississippi Parallels US Employment Index 2007 - 2012 Source: MS Center for Policy Research & Planning, I.H.S. Global Insight.

6. MS Regains 2000 Employment In 2015 Source: MS Center for Policy Research & Planning, I.H.S. Global Insight.

7. Madison Payroll Employment Outpaces State Source: MS Dept. of Employment Security

9. Major New & On-Going Projects Toyota Auto Plant $1.3 billion LNG Project $1.1 billion Port at Gulfport $570 million Stion $500 million Severstal Expansion $500 million KiOR $500 million Schulz Extruded Products $300 million Twin Creeks Technologies $175 million Source: Mississippi Authority Development

10. Growth in State General Fund Transfers ( FY2010 vs. FY2011, Through April) SOURCE: MS Dept of Revenue.

11. Health Leads State Employment Growth 2009 to 2010 Source: Data from MS Dept of Employment Security.

12. Health Long-Term Leader Employment Growth: 2000 – 2010 Source: Data from MS Dept of Employment Security.

13. Mississippi Employment Growth March 2010 to March 2011 Source: Data from MS Dept of Employment Security.

14. MS Health and Other Sectors vs. US (Percent) Source: US Bureau of Labor Statistics.

15. Forecast Growth Rate of Employment 2011 – 2016 Average Annual Rate Source: MS Center for Policy Research and Planning.

16. Health Care & Economy  Employment, payrolls, tax revenues  Multiplier impact – Out-of-state sales Out-of-state sales In-state purchases In-state purchases Federal matching funds Federal matching funds  Higher worker productivity  Research creating spin-offs  Rate of increase in cost problematic

17. Countries with Highest Per Capita Health Expenditures 2008 Source: OECD.

18. Madison County Employment By Sector 2010 Source: MS Dept of Employment Security.

19. Average Annual Growth of Employment In Health & Educ. Services 2001 to 2010 Average Annual Growth of Employment In Health & Educ. Services 2001 to 2010

20. Physicians Per 1,000 Persons & County Health Outcomes Physicians per 1,000 Outcome Rank Physicians per 1,000 Outcome Rank Hinds 6.6 39 Hinds 6.6 39 Rankin 1.8 3 Rankin 1.8 3 Madison 1.5 7 Madison 1.5 7 DeSoto 1.1 1 DeSoto 1.1 1 Mississippi 1.9 Mississippi 1.9 (State health outcomes rank 50 th among states.) (State health outcomes rank 50 th among states.) Source: CountyHealthRankings.org Source: CountyHealthRankings.org

21. IN SUMMARY IN SUMMARY Mississippi economic outlook – slow but positive growth  Employment back to 2000 level by 2015  Health care leader in employment growth Madison health care sector: broad impact Madison health care sector: broad impact  Multipliers AND higher worker productivity  Health costs & competitiveness  Key sector for state and Madison

22. MISSISSIPPI ECONOMIC REVIEW & OUTLOOK and MISSISSIPPI’S BUSINESS at www.mississippi.edu/URC www.mississippi.edu/URCwww.mississippi.edu/URC Join MS Economy Listserve: Join MS Economy Listserve: contact contact mhill@mississippi.edu mhill@mississippi.edu