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Full-Service Regional Hospital

Updated: February 15, 2008

Information from various feasibility studies have concluded that our region would support an 80-120 bed full-service hospital, and, that the ideal location for a regional hospital would be at the intersection of Highway 71 and US 281.  As the only corner with access to water and sewer, Crossroads is destined to host this new, state-of-the-art facility.

According to the feasibility study performed by Stroudwater & Associates for the City of Marble Falls, we are currently experiencing a leakage out of our capture area of 77% of our healthcare dollars, most of which are being transferred to Austin. ( VIEW ENTIRE PRESENTATION BY STROUDWATER )

The Stroudwater feasibility study indicated that Marble Falls is a very feasible location for an 82-124 bed hospital.   It is projected that the hospital would achieve positive cash flow within 3 years.   And, it is anticipated that such a facility would capture 54% of the leakage leaving our region.  Minimally, such a facility will create 250 new jobs, with an average income of approximately $32k annually.  Employment is projected to grow to approximately 400 within a few years.

Key Findings of the Study:

Marble Falls is a significant retail hub - a useful proxy for potential healthcare travel patterns

• 360% the local sales tax receipts of Burnet
• 740% of the local sales tax receipts of Llano
• 130% of the local sales tax revenue of Fredericksburg

No dominant provider in the region

• Combined, Llano and Seton Highland Lakes retain 22% of the area’s inpatients
• When area residents require inpatient hospital care, 78% of the time they currently travel significant distances, often for an hour or more

Services available locally are constrained

• There is no hospital-based labor and delivery service in Burnet County
• Outmigration for orthopedics cases is greater than 90%
• Outmigration for cardiovascular cases is greater than 70%
• Many specialties are available on only a part-time basis (anesthesia, OB, cardiology, etc.)

Attractive demographics

• More than 62,000 people live within 20 miles of Marble Falls
• More than 225,000 people live within 30 miles of Marble Falls
• Projected 30% population growth 2004 to 2014 for the area
• An older population with 50% more residents over age 65 than the US average
• Under-developed healthcare delivery infrastructure
• Together, Llano and Seton Highland Lakes can only accommodate 33.8% of 2009 inpatient demand if operating at functional capacity (85% avg. occupancy)
• To meet the needs of area residents, infrastructure capable of addressing 70%+ of inpatient healthcare requirements is recommended and appropriate

Best Case Outcome:

Enhanced local capabilities without “losing” existing hospitals

• A new facility should not simply replace Llano or Seton HighlandLakes or duplicate existing services

• A regional facility with “full service” community hospital capabilities

Comparable Community Assessment:

• Marble Falls has the largest population base within both 20-mile and 30-mile radii and is tied for the fewest staffed beds within a 30-mile radius.

• Only 48 miles from Austin, Marble Falls is the community closest to a major city.  However, on a drive time basis, Marble Falls is the same travel time from Austin as Kerrville is from San Antoniio

Catchment Area:

Demographics Overview by Sector:

• The PSA, SSA and Llano Sector, in particular, are considerably older than US and TX averages  These demographics suggest greater healthcare utilization than US and TX averages
• Combined population growth in the PSA and SSA between 2004 and 2014 is projected to be in excess of 31%.
• The Llano Sector is comparatively slower growing.
• The population across all sectors will grow older between 2004 and 2009.

Findings:

The Marble Falls market represents a very attractive opportunity to develop a full-service regional medical center offering local access to many new specialty services due to the following factors:

The catchment area does not have a dominant provider currently The nearest full-service hospital is 46 miles or 1 hour distant The area is under-served at present, with 78% of hospital patients leaving the area for care The catchment area offers a large population base with twice as many resident age 65+ as the Texas average Seasonal and vacationing populations add to the “base level” demand for hospital services by permanent residents By 2014, the population of the catchment area will grow by 30% Marble Falls is currently a sizeable commercial hub, with local taxable economic activity 3.6x larger than Burnet and 1.3x larger than Fredericksburg Significant opportunities exist to joint venture with physicians The lack of local competition and size of market provides a significant opportunity to develop local specialty services, including:

On Thursday, June 8, 2006, City of Marble Falls Mayor Raymond Whitman endorsed the proposal by Llano Memoral Healthcare System to build an 80-bed regional hospital on the Crossroads Campus.

Read story in Daily Tribune on June 9, 2006