Hospital Creates $10,902,509 Impact On Local Economy
Palo Alto County Health System (PACHS) generates 256 jobs that add $10,902,509 to the Palo Alto County economy, according to the latest study by the Iowa Hospital Association. In addition, PACHS employees by themselves spend $2,038,999 on retail sales and contribute $122,340 in state sales tax revenue.
“The health services we provide at our hospital, clinics, and senior services are very important to Palo Alto County’s economy. In addition to providing residents with quality and compassionate care, we contribute to the economy in all of our communities as an employer that employs a significant number of area residents,” said Tom Lee, CEO of PACHS. “An increase or decrease in activity in the health sector will greatly affect the medical and economic health of the community. In order to attract new business, industry and residents to our area, it is crucial that we are able to provide high quality health services.”
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 70,484 people and create another 67,247 jobs outside the hospital sector. As an income source, hospitals provide $3.8 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 329,793 Iowa jobs, or more than one-fifth of the state’s total employment.
“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,” 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. Iowa’s economic security is directly tied to having one of the finest health care systems in the nation.”