Business health

Who knew basketball was such a powerful economic development tool?

Some interesting information and perspectives came out of last weekend’s visit to Lawrence by economic development officials.

First, Kansas University basketball isn’t the city’s only economic development draw, but it seemed to be a popular event for eight site selectors and other officials who attended the KU-Oklahoma State game last Sunday using tickets donated to the Lawrence Chamber of Commerce. A representative of one site selection firm saw the chamber’s ability to collect the tickets as an indication of Lawrence’s sense of community “and its commitment to growing.”

It kind of reminds you of that slogan popular a few years ago, “Basketball is life.” It’s true Lawrence has a very strong sense of community as well as many residents who are extraordinarily attached and loyal to their hometown. If donated basketball tickets carried that message to the people who point businesses to potential new sites, so be it.

Another site selector noted Lawrence’s thriving downtown, its good variety of businesses and its overall economic strength as other reasons he would put the city on a client’s radar screen.

About the time the economic development guests arrived in Lawrence, Expansion Management magazine put another feather in the state’s cap by listing it as No. 1 on its list of favorable business places in terms of health care costs, service availability and risk factors.

Why is that so important? The magazine cited a survey in which 89 percent of 1,400 corporate chief financial officers said health care costs were their biggest concern for the next four years. That’s a higher priority for them than energy costs, the federal deficit, government spending or other issues.

This probably comes as no surprise to many Americans, especially those who run businesses, but it is a stunning comment nonetheless. Because so much health insurance coverage is offered as an employee benefit, businesses carry a huge share of the health care burden in this country. Businesses that provide health insurance benefits see their costs rising not only to provide care for their own employees but, in the big scheme of things, to help cover the cost of caring for the rising number of Americans who are uninsured.

The fact that health care costs are the No. 1 worry of American businesses, and therefore are having a significant negative impact on the nation’s economic vitality, seems to indicate that dealing with that issue should be a top priority with U.S. policymakers. It won’t be an easy task, but it could be vital to maintaining America’s economic strength and security in the global marketplace.

It’s good to know that Kansas compares favorably to other states in terms of health care costs and risk factors, but that doesn’t diminish the need for the nation to address this issue before it has a devastating impact on America’s economic vitality.