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Allegiance Changes Could Spur $21 Million Annual Impact

Posted: 3:42 PM May 15, 2012
Reporter: Lindsay Veremis

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Jackson's Allegiance Health announced Tuesday it will become a teaching school and trauma center, a move expected to pump more doctors and dollars into mid-Michigan.

Business leaders are expecting a $21 million annual impact for Jackson, $3.9 million of that will be new tax revenue.

Jackson Chamber of Commerce Director Mindy Bradish-Orta says it's another step toward economic recovery.

"We haven't seen this type of investment and growth in our community in a long time," she said.

On the heels of a Consumer's Energy/HCL partnership, set to bring more than 200 jobs to Jackson, Allegiance Health said Tuesday it will bring 140 more.

"To be able to build on what were two independent business decisions and look at how we can advance this region and have people really understand the wealth that is here, the talent that is here and the community quality of life will be great for us, but I also think it's part of the Michigan expansion," Georgia Fojtasek, Allegiance Health President and CEO said.

The hospital is launching a Graduate Medical Education, or GME program. By 2014, it will pull 140 resident physicians, in seven different specialties to Jackson. Those physicians and their families will spend at least three to five years in the area.

"That not only is going to increase our population, but it will increase it with people that are highly educated, well paid," Bradish-Orta said.

Jackson will also be getting better access to care and more doctors, in a time when physicians are scarce.

"Being at the cutting edge because we have all of these residents in our midst is just very exciting," Fojtasek added.

She says Jackson will have a good change of keeping those doctors long term. On average, health systems with GME programs, retain 50 percent of the residents they train.

Allegiance's GME program will boost its physician staff by 35 percent.

The hospital has also begun the verification process to become a level two trauma center. The designation, from the American College of Surgeons, would allow it to treat severely injured patients in their own community.

Currently, those patients must be transfered to Sparrow Hospital in Lansing or Ann Arbor's University of Michigan Hospital.

According to Allegiance, verification will take two or three years. It will culminate in a site visit.

"They look at all of your protocals and all of your quality to make sure your keeping patients that you can take care of and making sure you have good outcomes," Emergency Medical Director, Dr. Mark Smith with Allegiance said.

There are currently 400 physicians on Allegiance Health's staff.