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Economic contribution of American Indian health care spending in Northwest Minnesota

Native American medical professional holding a clipboard by her car

Key findings

Major findings for the seven-county region (Becker, Beltrami, Cass, Clearwater, Hubbard, Itasca and Mahnomen Counties) include the following:

  • Health care industry: In 2017, businesses in the seven-county region generated $1.3 billion in output.
  • Economic contribution: In 2017, American Indian health care spending generated $261.5 million in economic activity in the seven-county region.
    • Of this, $108.1 million was labor income to regional residents.
    • Health care spending supported 2,450 jobs.
  • Home health care: In 2017, American Indian home health care spending generated an estimated $54.9 million of economic activity in the region. 
    • Of this, $32.7 million was labor income.
    • The spending supported 1,060 jobs.
  • Substance abuse and mental health: In 2017, American Indian health care spending for substance abuse and mental health care created $14.4 million of economic activity in the region.
    • This includes $8.1 million in labor income.
    • The spending supported 260 jobs.
  • Home health and mental health providers: Two of the top 10 home health and mental health providers that received funding to treat American Indian patients were local and American Indian owned or affiliated.

About this report

The Northwest Indian Community Development Center (NWICDC) was interested in exploring the economic contribution of American Indian spending for health care in Northwest Minnesota. Of particular interest was the impact of spending from governmental sources, including Medicaid, Medicare, and the Indian Health Service. With this information, opportunities for both business and workforce development around health care can be explored.

Thus, NWICDC partnered with University of Minnesota Extension’s economic impact analysis team to complete this report. The goals of the analysis were to:

  • Quantify the total economic contribution of American Indian-related health care spending.
  • Measure the contribution of American Indian-related home health care and explore occupational opportunities in the sector.
  • Quantify the contribution of American Indian-related substance abuse counseling and look at occupational opportunities in the sector.
  • Explore the potential for supply chain development around the health care industry.

Read full report

Authors: Brigid Tuck, senior economic impact analyst; Rani Bhattacharyya, Extension educator

Reviewed in 2020

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