A Look at McKenzie Health’s Economic Contribution

The Economic Contribution of McKenzie Health

Report Summary and Conclusion

McKenzie County has experienced unprecedented socio-economic and demographic changes over the course of the past decade. McKenzie County’s population increased dramatically, becoming more racially diverse. McKenzie County also experienced an increased birth rate, twice that of statewide and national averages — and an increase in households with children. Strong economic conditions drove increases in per capita personal income. Rapid expansion of the oil and gas industry was the impetus for the unprecedented expansion in McKenzie County.

With that growth came an increased need for expanded health care services to meet the needs of a growing and changing community. McKenzie Health has responded to the needs of the community by building a new hospital and expanding services. General surgical services were added in 2018 and orthopedic services were added in 2019. More recently in 2022, echocardiography and ear, nose, and throat services were added as well as OB-GYN and maternity services. Plans are currently underway to offer a women and children’s health services clinic with two additional OB-GYN health care providers. As the third largest employer in McKenzie County, McKenzie Health employees 307 people including 40 physicians, physician assistants, and nurse practitioners; 108 CNAs, RNs and LPNs; and 31 health technicians.

In addition to providing health care services, McKenzie Health makes a substantial contribution to the local economy. McKenzie Health is responsible for about three-fourths of all Health Care Services output in McKenzie County. Total economic output (direct, indirect, and induced) in 2022 was $58.2 million and is projected to increase to $67.8 million in 2023. Labor compensation represented just over half of all economic output, $29.4 million in 2022 and $33.5 million in 2023 (projected). Economic activities associated with McKenzie Health generated $594,400 in state and local tax revenues in 2022 and is projected to generate $668,800 in state and local tax revenues in 2023.

Changing socio-economic conditions in the past decade have resulted in the need for expanded health care services in McKenzie County. McKenzie Health has responded to those needs by constructing a new hospital and expanding services. In addition to responding to McKenzie County’s need for health care services, McKenzie Health is also making a substantial contribution to the local economy.

Prepared by:

Nancy Hodur, Director, Center for Social Research
Chelsey Hukriede, Research Specialist, Center for Social Research
Dean Bangsund, Research Scientist, Agribusiness and Applied Economics North Dakota State University

View the Entire McKenzie Health Economic Contribution Report

MEDIA CONTACT

Lynn Welker, MMHC, ACHE
307-399-4145
lynn@welkerpr.com