Healthcare’s Impact on Local Economy

Grinnell Regional Medical Center generates 554 jobs, direct and indirect, that add $31,721,198 to the region’s economy, according to the latest study by the Iowa Hospital Association.  In addition, GRMC employees by themselves spend $6 million on retail sales and contribute $365,286 in state sales tax revenue.

“In our county the healthcare sector remains a significant driver in the local economic stability,” says Todd Linden, GRMC president and CEO. “Along with the hospital, the health sector includes local physicians and their clinic staff, dentists and their clinic staff, pharmacies, nursing homes, mental health clinics, and other health clinics. Combine, these organizations have more than 1,100 jobs directly linked to healthcare in Poweshiek County. The diversity of economic engines are extremely important to a strong local economy. We need a balance of agriculture, education, manufacturing, and service sectors to maintain and grow the local economy.”

“Grinnell Regional Medical Center is a driving force in sustaining excellent quality of life in our region and is an economic engine that makes a substantial impact toward making Grinnell a stronger place to live, learn, work and play,” Rachael Kinnick, Grinnell Area Chamber of Commerce director. “We are fortunate to have GRMC play such an integral role in our community.”

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 71,348 people and create another 44,935 jobs outside the hospital sector.  As an income source, hospitals provide $4.3 billion in salaries and benefits and generate another $1.8 billion through other jobs that depend on hospitals.

In all, the Iowa health care sector, which includes offices of physicians, dentists and other health practitioners, nursing home and residential care, other medical and health services and pharmacies, contributes $15.5 billion to Iowa’s economy while directly and indirectly providing 312,821 jobs, or about one-fifth of the state’s total non-farm employment.

“With more than 300,000 jobs, health care is one of Iowa’s largest employers, and hospitals are by far the biggest contributor to that number,” said Kirk Norris, IHA president/CEO.  “That impact carries through to local communities, where hospitals are often among the largest employers in Iowa cities and counties.”