Local economic development opportunities from NHS spending: Evidence from Wales. (October 2017)

• Record Type: Journal Article
• Authors: Morgan, Kevin; Munday, Max; Roberts, Annette
• Is Part Of: Urban studies. Volume 54:Number 13(2017:Oct.)
• Page Start: 3138
• Page End: 3156
• Publication Date: 2017-10
• Subjects: NHS Spending -- local and regional economic impacts -- public sector procurement -- supplier proximity -- Wales; 国家医疗服务体系开支 -- 地方和地区经济影响 -- 公共部门采购 -- 供应商邻近度 -- 威尔士; Cities and towns -- Periodicals; City planning -- Periodicals; 307.1216
• DOI: 10.1177/0042098016658248
• Languages: English
• ISSNs: 0042-0980

Abstract

The article examines the local and regional economic impacts of NHS spending. The research is set in the context of tensions between buying economies, process efficiencies and local economic development impacts of public sector procurement, and contributes to the evidence base on supplier proximity and income retention at the local and regional level. The scale, scope and spatial distribution of NHS spending in a South Wales case are analysed using detailed purchasing information provided by a local health board. The article then uses an economic modelling framework to quantify the supply chain impacts of this spending to determine the full regional economic impacts of operational and capital expenditures. The analysis shows that NHS Wales spending supports significant levels of regional economic activity in terms of output, employment and gross value-added. The article also explores scenarios on the potential economic significance of import substitution of selected purchases. The implications of the changing procurement environment, with new EU directives, and a reorganisation of procurement functions within NHS Wales, are explored, and suggestions are made for further research.