Hospital Creates $17 million Impact on Local Economy

DES MOINES March 6, 2015 – Wayne County Hospital and Clinic System generates 266 jobs that add $17 million to Wayne County’s economy, according to the latest study by the Iowa Hospital Association. In addition, Wayne County Hospital and Clinic System employees by themselves spend $2,316,575 on retail sales and contribute $138,995 in state sales tax revenue.

“It is always eye-opening to see the figures released by the Iowa Hospital Association. As we celebrate our 60th Anniversary we are reminded of the tremendous impact that our heath care organization has had on Wayne County over the years and the opportunities we continue to provide. It is our responsibility to carry this forward into the future. We recognize the important role our organization has in terms of employment and contributing to the overall strength and well-being of our community,” commented Daren Relph, Chief Executive Officer at Wayne County Hospital and Clinic System.

The 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 that Iowa hospitals directly employ 71,324 people and create another 50,131 jobs outside the hospital sector. As an income source, hospitals provide $4.2 billion in salaries and benefits and generate another $1.8 billion through other jobs that depend on hospitals.

In all, the 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 $14.3 billion to Iowa’s economy while directly and indirectly providing 293,758 jobs, or about one-fifth of the state’s total non-farm employment.

“Hospitals positively influence their local economies not only with how many people they employ and the salaries of those employees, but also through hospital purchases from local businesses as well as the impact of employee spending and tax support,” said Kirk Norris, IHA president/CEO. “Whether at the local level or statewide, there are few Iowa employers that generate economic activity comparable to hospitals.”

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.