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Hospital Creates $15,983,222 Impact on Local Economy
One in Five Iowa Jobs Linked to Healthcare, Study Shows
Regional Medical Center generated 270 jobs that added $15,983,222 to the area economy, according to the 2008 study by the Iowa Hospital Association. In addition, RMC employees by themselves spent $3,080,671 on retail sales and contributed $184,840 in state sales tax revenue.
“Regional Medical Center currently has 358 employees, making it the largest employer in Delaware County,” according to Donna Boss, Delaware County Economic Development Director. “When using the multiplier factor, RMC in turn benefits many businesses in the county. When DCED has a prospective client looking to locate in the county, Regional Medical Center is often an attraction for the industry. They want to see a progressive healthcare system in the county they are looking to locate. We are very fortunate to have Regional Medical Center in our county!”
“Not only does Regional Medical Center employ a significant workforce from the surrounding communities,” said Steve Palmer, RMC Governing Board Vice-Chairperson, “But they recruit many professionals who commute from outside the service area and choose to shop and obtain services locally.”
The IHA study examined the jobs, income, retail sales and sales tax produced by hospitals and the rest of the state’s healthcare 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 create another 73,953 jobs outside the hospital sector. As an income source, hospitals provide $3.65 billion in salaries and benefits and generate another $2.5 billion through other jobs that depend on hospitals.
IHA data show Iowa hospitals added 4,611 employees and more than $747 million to their payrolls (including benefits) between 2004 and 2008, the year for which the latest hospital data is available.
In all, Iowa’s healthcare sector, which includes employed clinicians, long-term care services and assisted living centers, pharmacies and other medical and health services, directly and indirectly, provides 354,907 Iowa jobs, or more than one-fifth of the state’s total employment.
“In spite of a very challenging economy today, our goal is continued growth of service that we might provide the ever changing healthcare needs of the residents of our communities,” stated Lon Butikofer, RN, PhD, CEO of Regional Medical Center. “With a devoted professional healthcare team accessible to and supported by residents of surrounding communities, it is our vision to accept the challenge to help individuals achieve optimal wellness throughout the continuum of life. We are proud to be a part of these local communities and appreciate the opportunity to continue to serve their residents.”
“Iowa enjoys the economic security that comes with having one of the finest healthcare systems in the nation,” said Kirk Norris, IHA president/CEO. “Iowa hospitals are at the foundation of Iowa’s economy and remain major employers and business partners in all parts of the state. Just as no one provides the services and community benefits found at our hospitals, there is also no substitute for the jobs hospitals provide and create.”
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