Healthcare Supports 1,300 Jobs in Local Economy

A recent study by the Iowa Hospital Association reports that more than 1,300 jobs in Poweshiek County are directly linked to healthcare services. Grinnell Regional Medical Center remains the largest healthcare employer in the county, with 417 employees, at the time of the study.

According to the IHA report based on 2012 data, GRMC employs 417 jobs that add $25,124,245 to the Poweshiek County economy. In addition, GRMC employees by themselves spend $6,786,614 on retail sales and contribute $407,197 in state sales tax revenue.

The Iowa Hospital Association report also lists 356 jobs in Poweshiek County of physicians, dentists, and other healthcare practitioners. Nursing and residential care facilities employ 487 and pharmacies employ 16.

“The income generated from healthcare jobs impacts several communities and counties,” says Todd C. Linden, CEO and president. “Nearly 60 percent of GRMC employees live in Poweshiek County with the remaining 40 percent living in nearby counties. We provide a strong economic impact on schools, businesses, and retail in the entire area.”

The IHA report focuses on the direct economic impact and total economic impact of the five healthcare sectors in the county and on the state level. The five segments include hospitals; practitioners such as physicians, dentists, and other health providers; nursing and residential care facilities; pharmacies; and other medical and health services.

“When you look at the economic impact of healthcare, you can see why health-related industry leaders want the Medicaid expansion at the state level. Each county with a robust healthcare industry will reap significant benefits if the federal government injects funds to support healthcare for Iowa’s low income families through Medicaid,” explains Todd Linden, GRMC president and CEO. “An expansion would support salaries in healthcare, including a boost in income taxes, plus a corresponding increase in retail sales taxes. If more people get insurance coverage through an expansion in Medicaid, it is obviously great for them and their families. Hospitals and doctors would get reimbursed for care largely given away today, which currently gets shifted to others through higher charges. It’s good for the economy to have a strong healthcare segment.”

 The study found that Iowa hospitals directly employ 71,169 people and create another 125,742 jobs outside the hospital sector. As an income source, hospitals provide $6.2 billion in salaries and benefits.

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 321,355 Iowa jobs, or nearly one-fifth of the state’s total employment.