Moving Rural Tennessee Forward: Policy Outlooks for Health and the Economy

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Christopher Daniels
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1 Moving Rural Tennessee Forward: Policy Outlooks for Health and the Economy Rural Health Association of Tennessee 24th Annual Rural Health Conference November 14, 2018

2 Creating Civic and Economic Opportunity ThinkTennessee is a 501c(3) think tank dedicated to the vision that public policy should focus on building ladders of opportunity for Tennesseans. As a nonpartisan, nonprofit research and advocacy organization, we empower leaders from across the state and both sides of the aisle to take action on pragmatic ideas that create civic and economic opportunity and move our state forward. 2

3 State of Our State Dashboard 3

4 State of Our State Policy Briefs 4

5 Health 5

6 Tennesseans are More Likely to Die from Chronic Diseases than Most Americans One in three Tennesseans (34.8%) is obese (45 th in the country), the highest rate of adult obesity in nearly three decades. Just since 2012, obesity in Tennessee has spiked 19%, from 29.2% to 34.8%. Obese adults are more likely to die from heart disease, stroke, type 2 diabetes and certain types of cancer. 6

7 Tennesseans are More Likely to Die from Chronic Diseases than Most Americans One in three Tennesseans (34.8%) is obese (45 th in the country), the highest rate of adult obesity in nearly three decades. Just since 2012, obesity in Tennessee has spiked 19%, from 29.2% to 34.8%. Obese adults are more likely to die from heart disease, stroke, type 2 diabetes and certain types of cancer. More than one in ten Tennesseans (12.7%) has diabetes (44 th in the country), the second highest rate for the state in the last two decades. Diabetes is a Top 10 leading cause of death in Tennessee. Nearly 1,800 Tennesseans died from diabetes in

8 Tennesseans are More Likely to Die from Chronic Diseases than Most Americans One in three Tennesseans (34.8%) is obese (45 th in the country), the highest rate of adult obesity in nearly three decades. Just since 2012, obesity in Tennessee has spiked 19%, from 29.2% to 34.8%. Obese adults are more likely to die from heart disease, stroke, type 2 diabetes and certain types of cancer. More than one in ten Tennesseans (12.7%) has diabetes (44 th in the country), the second highest rate for the state in the last two decades. Diabetes is a Top 10 leading cause of death in Tennessee. Nearly 1,800 Tennesseans died from diabetes in One in twenty Tennesseans (5.4%) has heart disease (44 th in the country), a significant increase from 2016 (4.9%). Heart disease is the leading cause of death in Tennessee. In 2015, nearly a quarter of all deaths 15,730 Tennesseans were due to heart disease. 8

9 Economy 9

10 How does TN stack up? Median Household Income st ($51,344) th ($55,240) 10

11 How does TN stack up? Median Household Income st ($51,344) th ($55,240) Unemployment Rank th (4.7%) th (3.6%) 11

12 How does TN stack up? Median Household Income st ($51,344) th ($55,240) Unemployment Rank th (4.7%) th (3.6%) Poverty Rate th (15.8%) st (15.0%) 12

13 How does TN stack up? Median Household Income st ($51,344) th ($55,240) Unemployment Rank th (4.7%) th (3.6%) Poverty Rate th (15.8%) st (15.0%) Children in Poverty th (23%) th (21%) 13

14 Rural-Urban Health and Economic Disparities in Tennessee 14

15 How Rural is Tennessee? U.S. Census definition of urban and rural: Two types of urban areas: Urbanized Areas (UAs) of 50,000 or more people; Urban Clusters (UCs) of at least 2,500 and less than 50,000 people. Rural encompasses all population, housing, and territory not included within an urban area. % Rural = the proportion of the population living in a rural area. 15

16 How Rural is Tennessee? Average proportion of county rural population in TN is 66%. Least rural counties: Shelby 2.8%, Davidson 3.4%, Hamilton 10.0%, Knox 10.9% TN has 20 countries that are 100% rural: Hancock Grundy Lake Fentress Clay Pickett Wayne Perry Meigs Van Buren Bledsoe Jackson Griainger Polk Decatur Hickman Union Houston Trousdale Stewart 16

17 Rural counties in TN tend to have (slightly) higher rates of obesity Adult Obesity, % 32.8% 31.2% 0-33% 33-66% % % Rural Population Source: Centers for Disease Control and Prevention 17

18 Rural counties in TN tend to have (slightly) higher rates of obesity Adult Obesity, % 32.8% Obese adults in the United States spend $1,900 in excess medical costs per year. 31.2% 0-33% 33-66% % % Rural Population Source: Centers for Disease Control and Prevention 18

19 Rural counties in TN tend to have (slightly) higher rates of obesity Adult Obesity, % 32.8% Obese adults in the United States spend $1,900 in excess medical costs per year. 31.2% On average in the United States, medical costs for a person with diabetes are about $13,700 per year, of which $7,900 is attributed directly to diabetes. 0-33% 33-66% % % Rural Population Source: Centers for Disease Control and Prevention 19

20 Rural counties in TN tend to have (slightly) higher rates of physically inactivity Physical Inactivity, % 34.2% 28.4% 0-33% 33-66% % % Rural Population Source: Centers for Disease Control and Prevention 20

21 Rural counties in TN tend to have (slightly) higher rates of physically inactivity Physical Inactivity, % 34.2% 28.4% Heart disease costs Tennesseans more than $5,600 per year in direct medical costsand lost productivity. 0-33% 33-66% % % Rural Population Source: Centers for Disease Control and Prevention 21

22 Rural counties in TN tend to have (slightly) higher rates of obesity, physically inactivity and uninsured Uninsured, % 10.9% 10.2% 0-33% 33-66% % % Rural Population Source: Centers for Disease Control and Prevention 22

23 Rural counties in TN tend to have lower incomes than urban counties Median Household Income, 2016 $53,895 $44,357 $40, % 33-66% % % Rural Population Source: U.S. Census Bureau, Small Area Income and Poverty Estimates. 23

24 Rural counties in TN tend to have slightly higher rates of unemployment Unemployment, % 4.5% 3.7% 0-33% 33-66% % % Rural Population Source: U.S. Bureau of Labor Statistics. 24

25 Rural counties in TN tend to have higher rates of children in poverty Children in Poverty, % 22.9% 25.4% 0-33% 33-66% % % Rural Population Source: U.S. Census Bureau, American Community Survey 25

26 Thousands of Rural Tennesseans are Missing Out on the Health and Economic Benefits of Broadband 26

27 Lack of Broadband Access Keeps Nearly a Quarter of Rural Tennesseans Offline Broadband Access TN ranks 24 th in the percentage of households within areas serviced by broadband providers (91%). But access is unequal: 27

Rural Tennesseans Remain Offline In eight of the 71 Tennessee counties that are mostly rural, more than half of residents lack access to broadband.

28 Rural Tennesseans Remain Offline In eight of the 71 Tennessee counties that are mostly rural, more than half of residents lack access to broadband. McMinn County: 60% rural, 23.5% lack access to broadband. In another 24 rural counties, between 25% and 50% of families lack broadband access. 28

29 The Importance of Rural Communities to the Tennessee Economy 29

Rural industries are Essential for Tennessee s Economy In 2015, agriculture and forestry was the third ranked industry in the state for total output.

30 Rural industries are Essential for Tennessee s Economy In 2015, agriculture and forestry was the third ranked industry in the state for total output. The agri-forestry industrial complex accounted for: $81.8 billion in output (directly and indirectly) 12.8% of the state s economic activity 351,164 in employment (9.2% of total workforce) 30

31 Rural Industries are Essential for Tennessee s Economy In 2015, agriculture and forestry was the third ranked industry in the state for total output. The agri-forestry industrial complex accounted for: $81.8 billion in output (directly and indirectly) 12.8% of the state s economic activity 351,164 in employment (9.2% of total workforce) Tennessee ranks in the top 25 states in the production of the following agricultural commodities: No. 4 in Tobacco No. 4 in Snap beans No. 9 in Cotton No. 10 in Hay No. 12 in Beef cows No. 13 in Equine No. 15 in Cattle & calves No. 16 in Broilers No. 17 in Soybeans No. 17 in Winter wheat No. 18 in Corn for grain No. 22 in Hogs Source: University of Tennessee Institute of Agriculture, Economic Contributions of Agriculture and Forestry (2015). 31

32 Economic Impact of Rural Hospitals Source: Tennessee Hospital Association, Rural Impact Report (March 2017) 32

Economic Impact of Rural Hospitals Rural hospital

economic opportunity: 6 rural hospital closures since

Three communities lost their only local hospital.

role 80 rural hospitals have closed across the U.S.

33 Economic Impact of Rural Hospitals Rural hospital closures have increased and are reducing health and economic opportunity: 6 rural hospital closures since Largest employer in the counties they reside. Three communities lost their only local hospital. Typically causes physicians to relocate, leaving communities without local doctors. Reductions in hospital payments play a significant role 80 rural hospitals have closed across the U.S. Since 2010 Source: Tennessee Hospital Association, Rural Impact Report (March 2017) 33

34 Policy Outlook for Rural Tennessee after Statewide Elections 34

35 May 2018 Vanderbilt Poll: Top 3 Priorities for TN State Gov t 35

36 May 2018 Vanderbilt Poll: Most Think the State Gov t Largely Ignores the Needs of Tennessee s Rural Communities 36

37 What are Some Key Policy Recommendations for Newly Elected State Leaders? Prioritize the needs of rural communities that are not reaping the benefits of the state s economic growth by implement policies aimed at closing the rural-urban health and economic gaps. Chronic Disease: Investing $10 per person in community-based chronic disease prevention programs would save the state $351 million over 5 years, a return of almost $6 for every $1 invested. Expand statewide policies and programs like the Tennessee Livability Collaborative to facilitate physical activity andaccess to healthy foods. 37

38 What are Some Key Policy Recommendations for Newly Elected State Leaders? Prioritize the needs of rural communities that are not reaping the benefits of the state s economic growth by implement policies aimed at closing the rural-urban health and economic gaps. Broadband: State leaders have an important role to play in convening and enabling communities to create their own pathways to deploy reliable and affordable broadband infrastructure. Prioritize the funding of broadband infrastructure that can be shared among multiple service providers, instead of limiting funding to one private provider per community. Incentivize broadband infrastructure deployment and service provision competition through a Dig Once policy, a proven cost- and time-efficient approach for the deployment of fiber infrastructure. Remove restrictions on municipal electrics and electric cooperatives to provide broadband internet inside and outside their services areas, either independently or through public-private partnerships. 38

HOW THE POLL WAS CONDUCTED

HOW THE POLL WAS CONDUCTED This poll was conducted by Mason-Dixon Polling & Research, Inc. of Jacksonville, Florida from April 17 through April 19, 2018. A total of 625 registered Tennessee voters were