By Haas Center on December 5, 2018
With the announcement that Bay Medical Sacred Heart will be forced to make major layoffs in the wake of Hurricane Michael, the economic impact of that disaster continues to grow. According to the Panama City News Herald, "the layoffs come as the hospital looks to re-open at about a quarter of their previous size and 'adjust their staffing accordingly.'"
Using that information, we conducted a sensitivity analysis to evaluate the economic impact of this change. If just 750 of the over 1,500 mentioned lose their jobs or are relocated outside of the county, the impact according to our input-output model is $72.7 million in earnings lost to the Bay County economy and 1,361 overall jobs lost from the resultant reduction in spending. This includes a direct impact on sales (output) of $21.1 million, indirect impact of $5.1 million and induced impact of $28.5 million for a total impact on county output of $54.7 million.