ORHC creates $62 million impact on local economy

Business

February 28, 2010

Study finds Iowa hospitals directly employ 74,027

OTTUMWA — Ottumwa Regional Health Center generated 849 jobs that added more than $44 million to southeast Iowa’s economy in 2008, according to the latest study by the Iowa Hospital Association.

Employees of Ottumwa Regional spent over $21.6 million on retail sales and contributed over $1.2 million in state sales tax revenue.

Tom Siemers, ORHC president said, “People think of hospitals as places to improve their personal quality of life. But the reality is, communities move forward economically when they have access to quality health care. We are proud that Ottumwa Regional helps secure a better quality of life for everyone in our region.”

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 74,027 people and because the health sector and employees in the health sector purchase large amounts of goods and services from local business, another 76,876 jobs outside the hospital sector are created. As an income source, hospitals provide $3.6 billion in salaries and benefits and generate almost another $2.4 billion through proprietor income (other jobs that depend on hospitals).

Ottumwa Regional alone, through payroll and proprietor income claims $62.4 million of that economic impact.

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 354,307 Iowa jobs, or more than one-fifth of the state’s total employment.

“Even in these difficult economic times, Iowa hospitals remain major employers and business partners throughout the state,” said Kirk Norris, IHA president/CEO. “In addition to providing essential health care and community services, hospitals are at the foundation of Iowa’s economic infrastructure.”