Study: Iowa hospitals add $6.2 billion to state's economy

Iowa's community hospitals generate more than 136,000 jobs that add nearly $6.2 billion to the state's economy, according to the Iowa Hospital Association's latest Iowa hospital economic impact report.  In addition, Iowa hospital employees by themselves spend $1.7 billion on retail sales and contribute more than $104 million in state sales tax revenue.

“People are often unaware of the contributions that hospitals make to their local economies, including the number of people they employ, the significance of hospital purchases with local businesses and the impact of their employees' spending for the entire region,” said Kirk Norris, IHA president/CEO.  “Just as no one provides the services and community benefits found at our hospitals, there is also no substitute for the jobs and business hospitals provide and create.”

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 70,363 people and create another 65,783 jobs outside the hospital sector.  As an income source, hospitals provide $3.9 billion in salaries and benefits and generate another $2.3 billion through other jobs that depend on hospitals.

In all, Iowa's health care sector, which includes employed clinicians, long-term care services and assisted living centers, pharmacies and other medical and health services, directly and indirectly provides 333,554 Iowa jobs, or more than one-fifth of the state's total employment.

Complete information from the study, including economic impact data for each of Iowa's hospitals, is available on the IHA website at www.ihaonline.org.

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.