The
IHA Hospital Economic Impact Report
Iowa's
Community Hospitals An Irreplaceable AssetA
hospital is an asset to any community or region. It provides communities with
easy access to the broad spectrum of essential health care services - primary
care, surgery, laboratory services, emergency care, mental health services, hospice
and technology like PET scanning and magnetic resonance imaging. Community
hospitals also offer community benefits in the form of charity care and free and
reduced-cost services like immunizations, health screenings, and counseling. Many
of these programs and services simply would not exist without hospital resources
and leadership. Hospitals as health care providers are clearly irreplaceable.
But hospitals are also essential in another way - as economic engines.
$5.7
Billion Impact
Iowa
has 117 community hospitals, and they create an enormous economic impact across
the state. Hospitals not only provide jobs, they create jobs by purchasing goods
and services from other businesses. And hospitals are essential to local and statewide
economic development - companies that want to relocate or expand demand access
to comprehensive, high-quality health care services. According to a study by the
Iowa Hospital Association (IHA), Iowa hospitals provide more than 71,000 jobs
that pay more than $3.2 billion in salaries and benefits. This makes hospitals the
ninth largest non-agricultural employer in Iowa. No wonder most Iowa hospitals
are among the largest employers in their counties. And these are
not ordinary jobs. Most hospital employees are highly skilled and well-paid professionals
who not only carry college and post-graduate degrees, but regularly update their
skills through continuing education. Multiplying the Benefit
But
the economic impact of hospitals extends beyond the people they hire and the salaries
that are paid. The business and household needs of hospitals and their employees
creates a "multiplier" effect that supports thousands of additional
jobs. In fact, the IHA study found that for each job provided by Iowa hospitals,
1.78 additional jobs are created. This means that, in total, more than 154,000
jobs are tied to Iowa hospitals, creating an overall impact that is worth more
than $5.7 billion to Iowa's economy. Supporting Their Communities
With
payrolls exceeding 71,000 employees and $3.2 billion, Iowa hospitals have a tremendous
impact on their local businesses and communities. Retail sales generated by hospitals
and their employees equal nearly $1.8 billion dollars, according to IHA's study.
In turn, that retail activity generates sales tax, a major revenue source for
government, worth $85 million. A Healthy Health Care Industry
The
IHA study also examined the economic impact of other sectors in the state's health
care industry, including nursing homes and residential care, pharmacies, ambulatory
health care services, home health care services, and physicians, dentists and
other health practitioners.
While hospitals are by far the greatest
economic contributor to Iowa's health care industry, these other sectors have
significant impact. For example, health care practitioners, such as physicians
and dentists, directly and indirectly provide more than 79,000 jobs with an economic
impact of nearly $4 billion. Similarly, nursing homes and other residential care providers
create more than 95,000 jobs and add $2.4 billion to the economy. Because of the
"multiplier" effect, the IHA study found that health care in Iowa provides
375,000 jobs, or about one-fifth of Iowa's total non-farm work force. In terms
of economic impact, Iowa's health care industry is worth $13.8 billion. Hospitals:
An Economic Priority
Each year, Iowans invest in their hospitals. They
recognize community-based healthcare as a statewide priority and support hospitals
through millions of dollars in personal donations and thousands of hours in volunteer
time. Iowa leaders both in the state Legislature and in Congress should share
that priority. To expand and attract business, keep young people and families
in our state, and ensure the future of communities both small and large, hospitals
must be a central part of our leaders' economic plans. Simply put, with more than
154,000 jobs and $5.7 billion at stake, the health of Iowans and the health of their
state's economy depend on hospitals.
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