Healthcare outstrips education in Dunedin economy

The Dunedin City Council is considering new ways to support the growth of the healthcare industry, as new figures show the scale of the sector's economic contribution to Dunedin.

A report considered at this week's council economic development committee showed the healthcare sector generated $881 million in income for workers across Dunedin's healthcare sector, equating to just over $2.4 million a day.

At the same time, the sector's activities amounted to about 7% of the city's overall GDP, boosting the city's economy by $319 million a year.

The figures meant the healthcare sector outranked the economic contributions of education (about 7% of GDP, or $315 million), tourism (4%, $169 million) and engineering (2%, $99 million) in Dunedin.

The healthcare sector created 15% of the city's jobs, and almost all (93%) of the income generated by healthcare came from Dunedin Hospital, through the Southern District Health Board, which paid $595 million.

Other healthcare services, such as general practitioners ($121 million) and healthcare research and development ($110 million), also contributed.

The report, by council bio-resources adviser Graham Strong, said the findings underscored the "very large" contribution of the healthcare sector to the city's economy.

The results would help the council identify ways it could encourage the growth of medical and life sciences research, education and companies in Dunedin, he said.

Speaking at this week's meeting, council economic development unit manager Peter Harris said healthcare was "obviously a massive industry".

"The next question is what, if anything, could we do to help retain and grow the industry."

The council's report summarised research by the University of Otago's department of health, which was commissioned by the council to benchmark the sector against other significant city industries, he said.

It was the first time the council had turned its attention to the economic contribution of the healthcare sector, he said.

The economic development committee paid for the $6500 project.

A 2009 Berl report, with different methodology, ranked education as Dunedin top contributor, saying it injected $337 million into the economy and employed 6864 employees.

Healthcare was second, injecting $319 million and employing 4221, the Berl report said.

Mr Strong was talking to major healthcare players about initiatives the council could consider, and a report would be presented to a later committee meeting.

chris.morris@odt.co.nz