Measuring effects associated with improved health?



  • Official comment

    Hello Robin,

    This is a great question, but it can get tricky because the $ figure would need to be known by industry. For example, if the hospital's treatment cures 100 people and enables them to be fit for work again, what industry will they enter into? 

    Another somewhat tricky question is, what new income is generated? Even if people are able to re-enter the job market, it is likely that not all of their income will be new. If they were receiving disability funding, then going back to work substitutes the disability funding with a paycheck, although the new paycheck may be greater than the funding they received while unwell. 

    If you would like to look at this analysis from the perspective of what is lost while the individuals are sick, then you will have to consider things like how hard would it be for the industry to continue to maintain production by hiring new employees or making other changes. 

    If you can provide more information about what data you think you will be able to gather and we can provide further guidance. 


    Thank you,

    IMPLAN Support

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    Hi Robin,

    To provide some further guidance - one option could be to evaluate the effect of the gained income and subsequent household spending in your region due to individuals being healthy enough to return to work or work more hours. 

    The above points are considerations for measuring the industry activity gained from these individuals working, which as explained creates the need for a lot of data and/or assumptions. Focusing just on the labor aspect of the effect of the medical treatments prevents the need to address so many assumptions and will give a more conservative estimate of the impact.

    The one consideration from above that is still relevant when focusing on just the labor component is the consideration of what income these individuals would have been receiving  (i.e. unemployment or disability payments) while sick and how that will change as a result of their recovering. Keeping this in mind will help identify truly "new" income to then be modeled in IMPLAN to show the impact of the change. 

    You would need to utilize either a Labor Income, Household Income or Household Spending Event depending on what dollar value you are able to obtain about these individuals gained income. Learn more about the differences between these Event Types here:

    Thank you,


    Applied Advisory Economist



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