Iowa’s community hospitals generate more than 140,000 jobs that add nearly $7.8 billion to the state’s economy, according to IHA’s latest Iowa hospital economic impact report. In addition, Iowa hospital employees by themselves spend more than $2 billion on retail sales and contribute nearly $124 million in state sales tax revenue.
The IHA report examined the jobs, income, retail sales and sales tax produced by hospitals and the rest of the state’s health care sector. The report was compiled from 2017 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.
Notably, the report found that Iowa hospitals directly employ 76,203 people and create another 64,453 jobs outside the hospital sector. As an income source, hospitals provide $5 billion in salaries and benefits and generate another $2.7 billion through other jobs that depend on hospitals. In all, Iowa’s health care sector provides more than 342,000 jobs and contributes $18 billion to the state economy.
“Hospitals and health care play an important role in the state’s economy,” said IHA President and CEO Kirk Norris. “IHA continues to share these facts with political leaders to help them understand that legislation and regulations concerning Iowa hospitals impact the economic vitality of the state. Hospitals are often the largest employers in the area and as purchasers of goods and services, their investments in their communities multiply many times to the benefit of the local economy. Collectively, Iowa hospitals make a significant contribution to the economic well-being of the state.”