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These funds included $9.6 million in construction costs, $2.7 million in real estate purchases, and $1.4 million in leases. VCOM has spent over $44 million in salaries and benefits, $1.8 million in general and educational supplies, $1.5 million in telecommunications and information technology expenses, $1.3 million in maintenance and maintenance supplies, $1.35 million in insurances, $2.5 million in monies and expenses to Virginia Tech for affiliations and services, $480 thousand in accounting and auditing fees, $600 thousand in locally purchased assets, $300 thousand in accreditation and in required membership fees, and $3.4 million in research laboratory supplies. Finally the economic impact created by the living expenses of the 300 first and second year students residing in Blacksburg and the 200 third and fourth year students living and training in Virginia at any one time is approximately $32 million for the first five years. As a private institution, VCOM has been the recipient of less than $200 thousand from the Commonwealth of Virginia, and $200 thousand from the federal Appalachian funds for our programs. The majority of our impact is student revenue from tuition and fees, externally funded research, and gifts, with minimal cost to the taxpayer. |
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stablishment of the Virginia College of
Osteopathic Medicine created a significant economic impact in Southwest Virginia. During the first five years, the direct economic impact from VCOM in the regional was more than $100 million dollars. 
Future Increases in Economic Impact
VCOM enrolled over 780 medical students in our first five classes. Over 460 of these students are from our target Appalachian
region. Many of these students are from rural and/or under served areas and have expressed
the desire to return to their home regions when they graduate.
In 2008, the first VCOM sponsored post-graduate residency training programs opened at Montgomery Regional Hospital in Blacksburg, Virginia, and at Bluefield Regional Medical Center in Bluefield, West Virginia. The next residencies are planned for Southwest and Southside Virginia. The economic impact created by each post-graduate resident is estimated to average $100 thousand and includes salary, benefits, and money reimbursed to the hospital for expenses. VCOM will be establishing over 200 new residency positions in the next four years in Southwest and Southside Virginia. This could result in an additional economic impact of $20 million.
Indirect Economic Impact
on Southwest Virginia
The mission of VCOM, focusing on providing physicians for Southwest and Southside Virginia, has the potential for a significant economic impact on the affected communities. A study of rural hospitals in the United States demonstrates that the impact
of an average rural community hospital is
$25 million in payroll and expenses alone.
In the smallest towns where a community hospital exists, this impact is clearly a critical part of the employment base since these hospitals are often one of the major employers
in the region.
Each VCOM graduate physician who returns to practice in a community where a hospital exists will provide approximately $1 million in economic impact. Each such physician who operates solely in an outpatient practice (without a hospital practice) will provide an approximate economic impact of $500 thousand to their community. This impact is measured through jobs created and practice expenses. In addition, there are indirect economic impacts such as a community’s increased ability to attract industry when quality healthcare is available to the employees.