March 28, 2024

Hospitals have significant impact on local economy

• Iowa’s health care sector provides 312,821 jobs across the state

To date, Clarke County Hospital has an economic impact of 216 jobs and $9,804,860 to Clarke County’s economy in 2016, according to the latest study by the Iowa Hospital Association.

The hospital has an economic impact of $2,206,304 on retail sales and $132,378 in sales tax.

“Not only is Clarke County Hospital critical to our community from a health care perspective,” said Brian Evans, chief executive officer, “it is critical to the economic stability of our community. A community without schools and a hospital will not grow and thrive. It is a piece of the economic formula for success in any thriving community.”

“Along with the tremendous direct economic impact the hospital provides to the community, it also helps drive the quality of life,” said Bill Trickey, executive director of Clarke County Development Corporation. “Increasingly, people of all ages are striving to embrace a healthier lifestyle. Clarke County Hospital has taken a leading role in educating the citizens of our community on healthy choices they can make. These healthy lifestyle initiatives help attract employers and employees to our community.”

The Iowa Hospital Association (IHA) study examined the jobs, income, retail sales and sales tax produced by hospitals and the rest of the state’s health care sector.

The study was compiled from hospital-submitted data on the American Hospital Association’s Annual Survey of Hospitals and with software that other industries have used to determine their economic impact.

The study found Iowa hospitals directly employ 71,348 people and create another 44,935 jobs outside the hospital sector. As an income source, hospitals provide $4.3 billion in salaries and benefits and generate another $1.8 billion through other jobs that depend on hospitals.

In all, the Iowa health care sector, which includes offices of physicians, dentists and other health practitioners, nursing home and residential care, other medical and health services and pharmacies, contributes $15.5 billion to Iowa’s economy while directly and indirectly providing 312,821 jobs, or about one-fifth of the state’s total non-farm employment.

“With more than 300,000 jobs, health care is one of Iowa’s largest employers, and hospitals are by far the biggest contributor to that number,” said Kirk Norris, IHA president/chief executive officer. “That impact carries through to local communities, where hospitals are often among the largest employers in Iowa cities and counties.”

The Iowa Hospital Association is a voluntary membership organization representing hospital and health system interests to business, government and consumer audiences. All of Iowa’s 118 community hospitals are IHA members.