healthcare and biomedical ecosystem report€¦ · barrow neurological institute at dignity health...

Healthcare &BiomedicalEcosystem

December 2019

Cutting-Edge Companies and a Legacy of High-Quality CareGreater Phoenix has long been a healthcare destination because of its excellent quality of life and abundant, excellent healthcare providers. Today, a new innovative healthcare and biomedical industry has emerged from Greater Phoenix’s legacy of care. Supported by outstanding educational partners and a talented growing workforce, the healthcare and biomedical industry is booming in Greater Phoenix.

With an innovative and supportive ecosystem in Greater Phoenix, it is no surprise that so many top companies choose the region.

Here are just a few reasons why so many top companies choose Greater Phoenix:

Build a Healthier Business inGreater Phoenix

• A vibrant research and development ecosystem with thousands of clinical trials already taking place

• The perfect blend of workforce quality, talent availability and lifestyle for scaling companies

• University and industry alignment to support research and development

• Significantly lower operating costs than competitor regions, allowing companies to grow

Healthcare & Biomedical

Value Proposition


Value Proposition

Broad HealthcareProvider Network

UniversityAlignment

Competitive Operating

Costs


Cutting EdgeResearch

TalentAvailability

University Alignment

Cutting-Edge Research

Talent Availability

Broad Healthcare Provider Network

Competitive Operating Costs

•More than 5,879 graduates from related degree programs in 2018

•Multiple medical schools throughout the region

• Innovative programs at Arizona State University, driving health tech

• Thousands of clinical trials take place in Greater Phoenix annually

• Phoenix Biomedical Campus and Scottsdale Cure Corridor drive innovation through clustering

•Workforce costs that are thousands less than all peer markets

•Housing costs that are 4x less than San Jose

•Workforce that is 8,600 workers larger than San Diego

•Many nationally recognized hospitals and institutes call Greater Phoenix home

•Banner Health, headquartered in Phoenix, is the region’s largest private employer

•Operating costs that are more than 10% lower than all competitor regions

•Corporate income tax rate that is more than 3% lower than competitor markets

Notable Medical Schools in Greater Phoenix

Talent PipelineHealthcare & Biomedical

Mayo Clinic School of MedicineIn 2017, Mayo Clinic's campuses in Phoenix and Scottsdale, Arizona, became the third campus of Mayo Clinic's School of Medicine. Students will join over 6,600 Mayo Clinic employees who care for more than 100,000 patients every year. The Mayo Clinic School of Medicine in collaboration with Arizona State University has developed signature joint programs and received recognition by the American Medical Association for innovations in the medical school curriculum. For example, Mayo Clinic School of Medicine is the first in the nation to integrate a Science of Health Care Delivery certificate program with ASU into medical degree training.

Midwestern UniversityPatient-centered learning in the sciences. Team-oriented, interdisciplinary, hands-on experiences in the art of patient care. The colleges and academic programs at Midwestern University's Glendale Campus skillfully blend these critical components into the outstanding professional education that will take students into successful 21st century healthcare practice.

Colleges include:

• Osteopathic medicine

• Pharmacy

• Health sciences

• Graduate studies

• Optometry

• Dental medicine

University of Arizona College of Medicine — PhoenixThe University of Arizona College of Medicine – Phoenix is committed to four pillars that empower its mission and vision for the future. The Education Pillar, Research Pillar, Clinical Pillar and Community Service Pillar converge in many areas and synergistically form the foundation of the College.

• Nine clinical affiliates, anchored by Banner Health

• 122 on-campus faculty and 1,600+ community faculty

• 25+ graduate medical education programs


Notable Medical Schools in Greater Phoenix (cont.)

Creighton University School of MedicineLocated at Dignity Health St. Joseph’s Hospital and Medical Center in Phoenix, Creighton University School of Medicine educates 48 third- and fourth-year medical students. Students have access to clerkships and electives in a variety of fields, including family medicine, neurology, pathology, radiology and more. In 2018, the university announced it would be expanding its operations in Greater Phoenix with a $150 million campus that will train 700 medical students.

Talent Pipeline

Talent PipelineDepartment of Biomedical Informatics at Arizona State UniversityThe Department of Biomedical Informatics (BMI) at Arizona State University fosters strong partnerships among academic researchers, clinical practitioners, and regional health careproviders in the advancement of research and education in the science and practice ofbiomedical informatics.

The department is supported by unique collaborations with:

• Mayo Clinic• Banner Health• Barrow Neurological Institute• The University of Arizona College of Medicine

BMI is currently offering a Bachelor of Science (BS), Master of Science (MS), and a Doctor of Philosophy (PhD) in the field, specifically designed to bring together clinicians and researchers in teams to apply new developments in informatics theory to clinical practice.

Courses feature a sequence in methodology, problem solving, and the latest software and systems solutions. The program is also offering a Master of Advanced Study (MAS) in Health Informatics designed to offer professionals working in the field of health care an opportunity to earn a master level degree on the effective use of information technology, data science, and knowledge representation to impact health and health care.

The department researches within the following areas:

• Clinical informatics• Population health• Bioinformatics• Imaging informatics• Cross-cutting areas

For more information about the Department of Biomedical Informatics, please visit:https://chs.asu.edu/programs/schools/department-biomedical-informatics


Greater Phoenix Talent PipelineBelow are the total number of non-distance program completions at colleges and universities in Greater Phoenix for healthcare and biomedical fields. The region produced over 16,000 graduates in these fields during the 2017 to 2018 school year. The region’s universities are committed to supplying the workforce needed to enable companies to scale in the region. Comparison data for peer markets has been provided below.

Talent Pipeline

Non-Degree Certificates Associate Bachelor Master Doctor

10,768 2,034 2,369 620 856

Competitor Markets’ Talent Pipeline


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Phoenix Boston San Diego San Francisco San Jose

Source: Emsi 2019 Q4 Dataset

Research & DevelopmentBiomedical Research in the Heart of Greater PhoenixPhoenix Biomedical Campus

Located in the heart of Downtown Phoenix, the Phoenix Biomedical Campus (PBC) is a premier and dynamic environment for research activities. The PBC currently hosts the highest concentration of research scientists and complementary research professionals in the region and provides firms with unprecedented opportunities for growth and collaborative efforts with industry leaders. It is a 30-acre urban medical and bioscience campus planned for more than 6 million square feet of biomedical-related research, academic, and clinical facilities. To date, the campus has been developed with approximately 1.5 million square feet of the anticipated 6 million square feet at build out.


Current Tenants

• Ashion Analytics• Tgen (Translational Genomics Research

Institute)• International Genomics Consortium• University of Arizona• Arizona State University

• Northern Arizona University• Bioscience High School• National Institute of Diabetes & Digestive &

Kidney Diseases• Dignity Health

For more information about the Phoenix Biomedical Campus, please visit:https://biomedicalphoenix.com/

Research & DevelopmentHealthcare and Research in the Northeast Valley

Scottsdale Cure Corridor

The Scottsdale Cure Corridor is a concept designed to promote the innovative activities around the concentration of the Bio-Life Sciences sector from Shea Boulevard to the Scottsdale Airpark. With a concentration of cutting-edge research, clinical trial activity and world class patient care delivery, the Scottsdale Cure Corridor is unique.


Notable Tenants in the Scottsdale Cure Corridor

• Translational Drug Development (TD2)• Virginia G. Piper Cancer Center at

HonorHealth• The Ben & Catherine Ivy Foundation• Vitalant (formerly Blood Systems)• GlobalMed

• IDM LabTrack (formerly Ambient)• Neuromuscular Research Center• HonorHealth Research Institute• Ironwood Cancer & Research Centers• Fry Laboratories• Gemneo

Research and Clinical Trial Companies in the Scottsdale Cure Corridor

Research & DevelopmentHealthcare Research and Innovation in the West Valley

Midwestern University — Glendale

Midwestern University (MWU), located in Glendale, is on the cutting edge of a variety of healthcare research. For example, in 2016, the College of Pharmacy established the Nanomedicine Center of Excellence in Translational Cancer Research. Students from Pharmacy, Biomedical Science, Osteopathic Medicine, Dental Medicine and Veterinary Medicine can be trained to participate in the Center initiatives. Its vision is to build a growing institutional research investment based on the experience of its multidisciplinary team of well-established investigators in nanoscience and nanomaterials, as well as expand the current collaborative research network with pre-clinical and clinical investigators with diverse experiences and skills.

Cancer Treatment Centers of America (CTCA)

CTCA’s comprehensive cancer treatment hospital, located in Goodyear, is committed to bringing its patients new and innovative cancer treatment options. With 45 clinical trials currently in progress, CTCA is searching for innovative healthcare solutions in Greater Phoenix.

Ironwood Cancer & Research Centers (ICRC)

With locations throughout Greater Phoenix, including Avondale and Glendale, ICRC provides advanced cancer treatments to many in the region. ICRC has an active and expanding clinical research program and is committed to the advancement of medical knowledge and patient care. Ironwood Cancer & Research Centers has an active and expanding clinical research program that is helping to create the future of high-quality medical care.


Research & DevelopmentNationally Recognized Institutes in Greater Phoenix

Barrow Neurological InstituteBarrow Neurological Institute at Dignity Health St. Joseph’s Hospital and Medical Center is an internationally renowned medical center that offers care for people throughout the world with brain and spine diseases, disorders, and injuries. This institute performs more neurosurgical procedures annually than anywhere in the United States. Michael Lawton, MD, one of the world’s leading neurosurgeons, is the president and CEO of the institute. The U.S. News & World Report routinely lists St. Joseph’s as one of the best hospitals in the nation for neurological and neurosurgical care. In addition, more than 40 clinical trials are currently underway throughout the hospital.

Mayo ClinicMayo Clinic is one of the world’s leading healthcare providers and has four facilities in Greater Phoenix. In addition to managing clinical trials, the facilities include a hospital, two outpatient facilities, a clinical laboratory, medical school and Mayo’s proton beam facility. Mayo Clinic opened their main hospital in Phoenix in 1998 – the first to be designed and built by Mayo Clinic.

Banner Alzheimer’s InstituteThe Banner Alzheimer’s Institute, a Banner Center of Excellence, is a leading Alzheimer’s research center. The institute operates in two locations in Greater Phoenix: in Phoenix and in Sun City.Here is their three-part mission:• Set a new national standard of patient and family care• Conduct revolutionary studies in the detection and treatment of Alzheimer’s• Forge scientific collaborations that bring together institutions and disciplines internationally


Research & DevelopmentNonprofits Push for Bioscience in Greater Phoenix

Flinn FoundationThe Flinn Foundation is a privately endowed, philanthropic grantmaking organization established in 1965 by Dr. Robert S. Flinn, a prominent cardiologist, and Irene, his wife and a generous philanthropist. Its mission is to improve the quality of life in Arizona to benefit future generations. The Flinn Foundation supports the advancement of the biosciences in Arizona through grantmaking and coordinating Arizona’s Bioscience Roadmap, which was released in 2002 and updated in 2014 to guide the growth and development of the state’s bioscience sector through 2025.

Arizona Bioscience RoadmapThe Arizona Bioscience Roadmap is a long-term strategic plan originally commissioned by the Flinn Foundation in 2002 and updated in 2014 with the goal of Arizona becoming globally competitive and a national leader in select areas of the biosciences by 2025. The goals include:1. Forming an entrepreneurial hub2. Turning research into practice3. Developing bio-talent4. Promoting Arizona’s convergence of research, healthcare, and commercialization to economic

partners in neighboring states, Canada, and Mexico5. Enhancing the state’s “collaborative gene” reputation

Arizona Bioindustry Association (AZBio)AZBio is a not-for-profit, 501 (c) 6 trade association promoting the growth of Arizona bioscience companies. The Association is comprised of member organizations in business, research and education, economic development, government, and other professions involved in the biosciences. As the unified voice of the bioscience industry in Arizona, AZBio strives to make Arizona a place where bioscience organizations can grow and succeed.


Research & DevelopmentHealthcare & Biomedical

Why a Leading National Genetics Research Firm Thrives in Phoenix

Tgen – Translational Genomics Research Institute

On February 7, 2002 an assembly of more than 50 leaders and visionaries in science, medicine, government and business gathered at the Arizona state capitol to discuss the possibility of establishing Arizona as a player in the new economy of the biotechnology industry. Their goal was to set up a one-of-a-kind genomics research institute. A positive group consensus decided the idea was not only feasible but represented a unique opportunity for Arizonans to rally together for a shared vision into the future. With an unprecedented cooperative spirit, the group rallied to the task of securing support for TGen on the order of $90 million. They achieved this fundraising goal in a five-month window. Less than a year after that initial gathering in the Governor's office, TGenbegan operations.

TGen, the Translational Genomics Research Institute, is an affiliate of City of Hope. They are a Phoenix-based, nonprofit medical research institute dedicated to conducting groundbreaking research with life-changing results. They work to unravel the genetic components of common and complex diseases including cancer, neurological disorders, infectious disease, and rare childhood disorders. By identifying treatment options in this manner, they believe medicine becomes more rational, more precise and more personal.

“TGen is proud to have played a key role in the establishment of the Phoenix Biomedical Campus. We are delighted to see the progress that has grown up around us, and the City of Phoenix’s continuing vision for future biomedical development.”

-Tess Burleson, TGen COO

For more information on Tgen, please visit:https://www.tgen.org/

Phoenix-Based Health Tech StartupsGreater Phoenix has more than 140 healthcare startups. Listed below are three examples of the type of innovative companies growing in the region.

Local InnovationHealthcare & Biomedical

BMSEEDHeadquartered in Phoenix, BMSEED is a manufacturer of soft, compliant, and electromechanically robust (even stretchable) electrodes for research and clinical applications. BMSEED was selected for the Flinn Foundation Bioscience Entrepreneurship Program and was a semifinalist in the Arizona Innovation Challenge in 2017. The company is a 2018 finalist for the MassChallenge Accelerator in Boston.

WebPTHeadquartered in Phoenix, WebPT offers the most-trusted software in outpatient rehabilitation. Their end-to-end business platform that works for rehabilitation organizations, regardless of specialty, setting, or practice size. Founded in 2008, WebPT employs nearly 300 individuals and has more than 80,000 members.

Systems ImaginationHeadquartered in Scottsdale, Systems Imagination provides healthcare and life science partners with comprehensive, transformative, and unmatched ultra-high definition translational medicine solutions by combining proprietary individual technologies with an integrated, data-driven workflow. As a first of its kind bioinformatics services group, they deliver more accurate science and medicine to improve patient outcomes.

AZ Innovation Challenge WinnersEach year, the Arizona Commerce Authority hosts the Arizona Innovation Challenge, which awards $3 million in total to winners. That’s the largest available amount for any challenge of its kind in the country. Below is a list of winners from the healthcare and biomedical industry in Greater Phoenix from 2017 to 2019.

Local InnovationHealthcare & Biomedical

Company Winning Year Description

Additive Implants 2019 Phoenix-based medical device company focused on using additive manufacturing to address unmet surgeon needs.

Advinow Medical 2019Scottsdale-based startup using artificial intelligence and augmented reality to automate visits to the doctor’s office through kiosks.

Lighthouse 2019 Scottsdale-based chronic care management program for seniors with Medicare, delivered through Alexa.

Breezing 2018

For the first time, accurate metabolic information is at your fingertips. Breezing tracks your metabolism over time and helps you create a diet and exercise plan that's right for you. Your metabolism tells you how many calories you need to lose, gain or maintain weight. Breezing gives you the precise metabolic information you need to reach your weight goals.

Paradigm Diagnostics 2018

Paradigm offers accurate, comprehensive and clinically actionable cancer genomic profiling and therapeutic information in four to five business days to better improve cancer patient care. The Paradigm Cancer Diagnostic (PCDx®) comprehensive genomic profiling test analyzes DNA, RNA, and Fusions as well as Protein by immunohistochemistry to provide treating physicians and patients with more precise information about the specific cancer pathways in the tumor to allow for more effective treatment decision-making.

Mindset Medical 2018

Mindset Medical is an interoperable digital health platform that efficiently obtains and transmits personal health information (PHI) between patients and healthcare providers. We deliver patient data as clinical information to physicians, saving the healthcare system time and money.

GT Medical Devices 2017

GT Medical Technologies, is a bio and life sciences company that creates technologies designed to treat brain tumors.

Life365 2017 Life365, Inc, is a bio and life sciences company that provides remote healthcare solutions with through mobile health.

Resonea 2017 Resonea is a bio and life sciences company that develops sleep disorder diagnostic tools.

Source: Arizona Commerce Authority

Industry EcosystemHealthcare & Biomedical

Company Employees

Dexcom 900

Medtronic Tempe Campus 791

W.L. Gore & Associates – Medical Products Division 772

Abbott 609

West Contract Manufacturing 562

BARD Peripheral Vascular 472

Stryker Sustainability Solutions 301

GE Healthcare 130

GlobalMed 99

Ulthera Inc./Merz Device Innovation Center 97

Source: MAG 2018 Employer Database; CBInsights November 2019; Flinn Foundation

Largest Medical Device ManufacturersGreater Phoenix is home to an assortment of innovative medical device manufacturers. Listed below are the largest, listed by employment.

Largest Healthcare and Biomedical Firms in Greater PhoenixThere are hundreds of healthcare and biomedical firms in Greater Phoenix. Listed below are the largest firms, listed by employment.

Industry EcosystemHealthcare & Biomedical

Source: MAG 2018 Employer Database

Company Employees

Banner Health 27,593

Dignity Health 8,401

HonorHealth 7,313

Mayo Clinic 6,521

CVS Pharmacy 5,885

Walgreens 5,409

UnitedHealth Group 4,622

Phoenix Children’s Hospital 4,323

Abrazo Healthcare 3,990

Cigna Healthcare Of Arizona 2,134

Mckesson Corporation 1,990

Steward Health Care 1,820

Laboratory Sciences Of Arizona 1,664

Fresenius Medical Care 1,248

Triwest Healthcare Alliance 1,000

Humana 983

Sonora Quest Laboratories 800

Medtronic 791

Hospice Of The Valley 778

W.L. Gore 683

Express Scripts 656

Current EmploymentThe table below shows employment for the following occupations in the selected metros.

Labor AnalysisHealthcare & Biomedical

Source: EMSI 2019 Q4 Dataset

Occupation Phoenix Boston San Diego San Francisco San Jose

Registered Nurses 38,932 61,386 27,180 39,330 16,804

Software Developers, Applications 12,871 27,772 10,969 42,980 50,968

Software Developers, Systems Software 7,655 22,190 8,220 16,911 27,962

Medical and Health Services Managers 5,812 11,465 3,259 5,187 2,008

Clinical Laboratory Technologists and Technicians 5,484 8,613 3,955 4,488 1,218

Medical Records and Health Information Technicians 4,691 4,626 2,106 2,977 973

Physical Therapists 2,920 6,319 1,995 2,746 1,155

Computer Programmers 2,473 4,214 4,142 6,154 3,863

Health Technologists and Technicians, All Other 2,120 1,973 1,743 2,985 1,023

Web Developers 2,038 3,737 1,829 5,377 2,713

Computer Hardware Engineers 1,177 1,512 2,321 3,576 8,393

Medical Scientists, Except Epidemiologists 1,090 11,589 4,319 7,519 2,299

Dietitians and Nutritionists 983 1,429 760 1,142 500

Medical Equipment Preparers 919 1,137 459 922 443

Natural Sciences Managers 697 3,621 1,305 2,439 643

Chemical Technicians 631 1,316 821 978 636

Biological Technicians 603 4,919 2,281 2,198 1,147

Chemists 420 2,449 1,328 3,122 550

Medical Transcriptionists 345 707 331 295 128

Biological Scientists, All Other 249 3,854 2,024 3,554 775

Biomedical Engineers 148 1,654 693 576 429

Biochemists and Biophysicists 99 4,220 1,573 2,023 565

Epidemiologists 94 194 64 206 45

Microbiologists 70 599 206 1,172 247

Total 92,522 191,494 83,882 158,857 125,487

Labor CostsThe table below shows the annual median wage for relevant occupations in the selected regions.

Labor AnalysisHealthcare & Biomedical

Source: EMSI 2019 Q4 Dataset

Occupation Phoenix Boston San Diego San Francisco San Jose

Registered Nurses $76,981 $87,963 $99,008 $132,288 $133,973

Software Developers, Applications $100,755 $108,514 $110,926 $137,675 $127,421

Software Developers, Systems Software $98,904 $119,246 $114,670 $135,450 $144,248

Medical and Health Services Managers $97,843 $116,043 $118,581 $125,466 $121,638

Clinical Laboratory Technologists and Technicians $53,435 $60,299 $54,454 $60,445 $58,219

Medical Records and Health Information Technicians $37,378 $47,840 $46,800 $52,187 $56,285

Physical Therapists $85,384 $93,766 $91,666 $99,382 $102,357

Computer Programmers $85,197 $92,373 $105,165 $106,600 $105,664

Health Technologists and Technicians, All Other $43,826 $53,643 $43,680 $49,670 $50,024

Web Developers $63,981 $83,138 $58,906 $105,206 $93,413

Computer Hardware Engineers $109,491 $124,238 $126,547 $113,402 $145,538

Medical Scientists, Except Epidemiologists $70,782 $86,861 $95,264 $95,909 $105,872

Dietitians and Nutritionists $56,784 $66,123 $72,634 $84,219 $83,845

Medical Equipment Preparers $36,296 $43,992 $45,490 $54,413 $52,832

Natural Sciences Managers $90,667 $168,709 $149,198 $169,562 $175,864

Chemical Technicians $42,078 $57,616 $46,197 $50,086 $47,507

Biological Technicians $34,819 $53,144 $49,712 $54,038 $61,672

Chemists $66,290 $90,563 $70,595 $99,923 $92,102

Medical Transcriptionists $39,749 $36,109 $49,296 $49,130 $46,342

Biological Scientists, All Other $77,792 $77,168 $81,349 $93,330 $101,962

Biomedical Engineers $97,261 $97,198 $81,432 $98,322 $116,979

Biochemists and Biophysicists $90,168 $104,000 $72,946 $102,648 $100,090

Epidemiologists $58,094 $100,173 $88,046 $99,154 $76,024

Microbiologists $78,166 $82,846 $114,400 $95,493 $116,418

Healthcare and Biomedical Back Office OperationThe Annual Business Operating Cost Analysis has been prepared using the following parameters as an estimate for healthcare and biomedical operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.

Operating Cost Analysis

Assumptions• $1,500,000 personal property investment

• 10,000 square foot Suburban Class A, Lease

• Utilities (per month): Included in Lease

• 50 jobs (Bureau of Labor Statistics equivalent occupations)

Occupations Employment

Customer Service Representative 25

Sales Rep, Technical and Scientific Products 10

Software Developers, Applications 5

Computer User Support Specialists 4

First-Line Supervisors of Non-Retail Sales Workers 2

First-Line Supervisors of Office and Admin Workers 2

Human Resources Specialists 1

Sales Managers 1


Annual Operating Cost


Source: Applied Economics Metrocomp Tool, November 2019

Metro EmployeePayroll

Fringe and Mandated

Benefits

Real EstatePayments Property Tax Total Operating

Cost Index

Phoenix $3,015,333 $716,508 $288,900 $33,561 $4,054,302 100.0%

Boston $3,671,879 $874,827 $279,400 $37,800 $4,863,906 120.0%

San Diego $3,340,993 $808,727 $391,900 $17,040 $4,558,660 112.4%

San Francisco

$3,943,842 $952,506 $549,600 $17,985 $5,463,933 134.8%

San Jose $3,947,476 $953,373 $633,400 $17,700 $5,551,949 136.9%


$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Phoenix Boston San Diego San Jose San Francisco

Annual Operating Cost by Region

Healthcare and Biomedical Research OperationThe Annual Business Operating Cost Analysis has been prepared using the following parameters as an estimate for healthcare and biomedical operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.



• 15,000 square foot Suburban Class A, Lease

• Utilities (per month): Included in Lease



Medical and Clinical Laboratory Technicians 15

Biomedical Engineers 10

Research Technicians 5

Sales Representative, Technical and Scientific Products 5

Chemists 2

Database Administrators 2

General and Operations Managers 1





Fringe and Mandated

Benefits

Real EstatePayments Property Tax Total Operating

Cost Index

Phoenix $2,750,921 $674,017 $433,350 $111,870 $3,970,158 100.0%

Boston $3,242,158 $800,133 $419,100 $126,000 $4,587,391 115.5%

San Diego $3,073,440 $785,988 $587,850 $56,800 $4,504,078 113.4%

San Francisco

$3,565,486 $909,750 $824,400 $59,950 $5,359,586 135.0%

San Jose $3,567,123 $910,252 $950,100 $59,000 $5,486,475 138.2%



$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000



Healthcare and Biomedical Manufacturing OperationThe Annual Business Operating Cost Analysis has been prepared using the following parameters as an estimate for healthcare and biomedical operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.



• 250,000 square foot Industrial Manufacturing, Lease

• Utilities (per month):

• Electric: 1,000KW/400,000KWh

• Water: 50,000cf, 2 meter

• Wastewater: 50,000cf, 2 meter



Medical and Clinical Laboratory Technicians 212

Inspectors, Testers, Samplers, and Weighers 55

Laborers and Material Movers, Hand 51

Packers and Packagers, Hand 51

Shipping, Receiving, and Traffic Clerks 6

Biochemists and Biophysicists 5

General and Operations Managers 5

Biomedical Engineers 3

Logisticians 2

Industrial Production Managers 1

Human Resources Specialists 1





Fringe and Mandated

BenefitsUtilities Real Estate

PaymentsProperty

TaxTotal Operating

Cost Index

Phoenix $18,077,749 $4,584,001 $455,978 $1,710,000 $559,350 $25,387,079 100.0%

Boston $21,214,538 $5,430,433 $1,132,221 $1,952,500 $630,000 $30,359,692 119.6%

San Diego $20,117,249 $5,605,286 $1,101,238 $2,800,000 $284,000 $29,907,773 117.8%

San Francisco

$23,186,801 $6,435,733 $902,321 $3,930,000 $299,750 $34,754,605 136.9%

San Jose $23,697,207 $6,573,383 $921,089 $4,440,000 $295,000 $35,926,678 141.5%


$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000




Arizona Tax Environment vs. Competitor MarketsArizona has a very competitive tax and fringe/mandated benefits environment compared to other major healthcare and biomedical markets.

Taxes & IncentivesHealthcare & Biomedical

Statutory IncentivesEven with the highly competitive tax environment in Greater Phoenix and Arizona, there exists a number of tax incentives that can be utilized to mitigate operating costs. Please note that this is not a comprehensive list of all incentives available within the state of Arizona. Additionally, it should be noted that this document is only a guide for potential incentives. Actual incentives will depend on actual project parameters and varying program qualifications and requirements to be determined by the Arizona Commerce Authority.

Metro

Sales Tax Rate

Corporate Income

Inventory Tax

Unemployment Insurance Workers Comp.

(Rate Per $100

Payroll)Tax Rate Basis

Rate (As % Of

Payroll)Wage Base

Max. Payment

Phoenix 8.60% 4.90% Net Income No 2.00% $7,000 $140.00 $1.50

Boston 6.25% 8.00% Net Income Yes 1.87% $15,000 $280.50 $1.29

San Diego 7.75% 8.84% Net Income No 3.40% $7,000 $238.00 $3.24

San Francisco 8.50% 8.84% Net Income No 3.40% $7,000 $238.00 $3.24

San Jose 9.25% 8.84% Net Income No 3.40% $7,000 $238.00 $3.24

Quality Jobs Tax Credit:The Quality Jobs Tax Credit program awards $9,000 of tax credits over three years for qualifying companies. The chart below highlights minimum qualifying capital expenditure and wage rate within an urban area, while the texts describe additional program parameter.

Source: Applied Economics Metrocomp Tool, July 2018, Arizona Commerce Authority

Capped at 10,000 jobs per year

Employer must offer to pay at least

65% of employee health insurance

premium

$9K of corporate income tax credits

per job, spread over 3 years

($3,000/employee/year).

Min. New Jobs CountyMedian Wage Maricopa Min. CapEx

25 100% $37,352 $5,000,000

25 125% $46,690 $2,500,000

25 150% $56,028 $1,000,000

25 200% $74,704 $500,000

Urban

Taxes & IncentivesStatutory Incentives (cont.)Highlighted below are additional incentives available in the State of Arizona. In addition to the incentives listed below, many cities offer incentives for businesses.


Qualified Facility Tax Credit

R&D Tax Credit:• Refundable and nonrefundable corporate income tax credits for qualified research and

development done in Arizona, including company funded research at a state university

• Credit amount is 24% of first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million

• Qualifying small companies (less than 150 FTE) can apply to make their credit refundable (75% of nonrefundable credit value). A company can receive up to $2.0M in refundable credits per year

Targets manufacturer HQ

functions. Lesser of 10% of capital

investment or $20,000 per job per

phase (phase determined by

client)

Makes a Capital Investment of at

least $250,000 to establish or

expand a Qualified Facility that

devotes at least 80% of the

property and payroll to qualified

manufacturing, manufacturing-

related research & development, or

headquarters

Requires wages of greater than

125% of the state median wage

for production occupations

($42,614) in urban areas; 100% in

rural areas ($34,091)

Manufacturing for purposes of the

Facility Program means

fabricating, producing or

manufacturing raw or prepared

materials into usable products,

imparting new forms, qualities,

properties and combinations

Parks & RecreationGreater Phoenix is home to hundreds of parks and hundreds of miles of hiking, biking and walking trails. The Greater Phoenix region is home to the largest municipal park in the United States, South Mountain Park. South Mountain Park covers more than 16,000 acres. Other large parks in the region include the White Tank Mountain Regional Park, Camelback Mountain, Piestewa Peak and the Superstition Mountains. Notable walking trails in the region include the canal system, Tempe Town Lake the Greenbelt, and Papago Park.

Quality of Life


Cost of LivingGreater Phoenix is more affordable for companies and the people that make them successful. Across all major buckets of expenses, Greater Phoenix is less expensive than all our peer markets.

Quality of Life

Metro Cost of Living Index Index

Phoenix 105.1 100.0%

Boston 133.9 127.4%

San Diego 139.2 132.4%

San Francisco 165.00 157.0%

San Jose 144.4 137.4%

HousingGreater Phoenix has an affordable housing market. It is significantly less expensive to own or rent in the Greater Phoenix area than in all or many peer markets.

Metro Median Home Value Index Median Rent Index

Phoenix $271,600 100.0% $1,416 100.0%

Boston $465,700 171.5% $2,429 171.5%

San Diego $593,700 218.6% $2,527 178.5%

San Francisco $934,700 344.1% $3,168 223.7%

San Jose $1,142,600 420.7% $3,332 235.3%

Source: Emsi 2019 Q4 Data Set

Personal Income TaxGreater Phoenix has the lowest personal income tax of those states that have a personal income tax across all income levels. With its affordable cost of living and low taxes rates, income goes further in Greater Phoenix.

State $50,000 $150,000 $270,000 $500,000 $1 Million or More

Arizona 3.36% 4.24% 4.54% 4.54% 4.54%

California 8.00% 9.30% 9.30% 11.30% 13.30%

Massachusetts 5.05%

Source: Zillow Home Value Index, November 2019; Zillow Rental Index, November 2019

Source: Tax Foundation 2019. Tax rates are for single filers.


Key InfrastructureGreater Phoenix Airport ConnectivityGreater Phoenix has regular and consistent access to top healthcare and biomedical markets. With an average of 84 flights per week to these markets, Greater Phoenix is well connected. The table below shows weekly nonstop flights to leading healthcare and biomedical markets for November 2019.


Destination Total Nonstop Flights Per Week From Phoenix

Boston 35

San Diego 99

San Francisco 103

San Jose 101

Source: Phoenix Sky Harbor Flight Schedule November 2019

Greater Phoenix Regional Highway MapThe map below displays existing and planned highway infrastructure in Greater Phoenix. The region’s highways are well-planned and provide easy access to all the major submarkets in the region. In addition, proximity to Interstates 8 and 40 mean that access to California markets is seamless.

Key InfrastructureHealthcare & Biomedical

The Greater Phoenix region has the right mix of quality, affordability, and livability to support a wide range of healthcare and biomedical operations. The assets that drive the region’s status as a location of choice include:

• A large and connected talent pipeline to provide a robust supply of specialized workers to support healthcare and biomedical operations

• A competitive operating cost environment with lower annual expenditures than every major competitor market

• A highly affordable market for workers allowing a higher quality of life thanpeer markets

Not only does the region have the right balance of factors to support your operations, the region is actively engaged in improving the competitiveness of business within the region. With a blend of nationally-recognized institutions and innovative research facilities, Greater Phoenix has emerged as one of the leading regions for healthcare and biomedical operations.

Summary & ConclusionHealthcare & Biomedical

Rankings & Recognition

#1Phoenix was ranked #1 Fastest Growing City

by population in Business Facilities’ 2019

Metro Rankings Report

#1Arizona State University named

America’s Most Innovative University 5

years in a row by U.S. News & World

Report

#3Sky Harbor International Airport ranked

3rd in the Wall Street Journal’s “The Best

of the Biggest Airports”

Top TierAPS and SRP rank as top business

service providers by J.D. Power and

Associates for reliability

Top 10In 2019, Arizona was ranked in the top

10 best states to start a business by

WalletHub

Top 10Greater Phoenix is ranked in the top

10 for low catastrophic and natural

disaster risk

Top 20In 2018, two cities within the region

were listed in the top 20 happiest

cities in the nation

Top 20Arizona ranked in the top 20 states for

doing business in 2019


healthcare and biomedical ecosystem report€¦ · barrow neurological institute at dignity health...

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