Utah called nation's healthcare industry innovation 'hotbed'
A new report from Seattle-based healthcare think tank Cambria Grove and the Economic Development Corporation of Utah (EDCUtah) shows that Utah is a hotbed for healthcare industry innovation. Released Jan. 30, the report is titled “Utah Health Care Innovation Landscape.”
With an employment density that is more than twice the national average, Utah saw healthcare innovation jobs grow by more than 22 percent over the past five years, according to the report. The study, conducted in 2018, quantifies the healthcare innovation work taking place in Utah and classifies it into the categories of health IT; digital health; life sciences; and innovative services such as telehealth, concierge care or patient navigation platforms.
The study found that the healthcare sector has had a significant impact on Utah’s economy and directly accounts for $7.1 billion in sales and output, or dollars spent and produced as a result of employment or capital investment in the industry.
The healthcare innovation sector employs 34,130 in the state, with an average compensation of $90,250 compared to the state average of $55,442 per worker. Fifteen percent of Utah’s healthcare sector jobs are in innovation that accounts for 25 percent of the total output.
The study found that there was $312.3 million in total venture capital investment in 2017 in healthcare innovation companies.
In addition, when capturing direct, indirect and induced ripple effects, the healthcare innovation sector in Utah generates 60,878 total jobs across the state and $3.67 billion in annual employee compensation.
“Utah has one of the strongest and most diverse economies in the country,” said Clark Cahoon, life science cluster director at the Governor’s Office of Economic Development. “Here we let the market drive innovation and an effective and sustainable healthcare system is a market priority. Our policies and behavior as a state reflect our dedication to health and we welcome all entrepreneurs to join us in our work to improve the health care system.”