Iowa hospitals provide more than 700,000 jobs and pay more than $3.8 billion in salaries and benefits annually, according to a recent study conducted by the Iowa Hospital Association.
Iowa’s 118 community hospitals are the state’s ninth largest non-agriculture employer. “These are not ordinary jobs,” the IHA said in a press release. “Most hospital employees are highly skilled and well-paid professionals who not only carry college and post-graduate degrees, but regularly update their skills through continuing education.”
The IHA says the economic impact for the state extends far beyond the hospital walls.
“The business and household needs of hospitals and their employees creates a ‘multiplier’ effect that supports thousands of additional jobs. This means that, in total, 136,000 jobs are tied to Iowa hospitals, creating an overall impact that is worth nearly $6.2 billion to Iowa's economy,” stated the press release.
Additionally, retail sales generated by hospitals and their employees exceed $1.8 billion, according to IHA's study. In turn, that retail activity generates sales tax, a major revenue source for government, worth nearly $109 million.
While hospitals are by far the greatest economic contributor to Iowa's healthcare industry, other sectors also have significant impact. For example, healthcare practitioners, such as physicians and dentists, directly and indirectly provide more than 82,000 jobs with an economic impact exceeding $4.8 billion.
Similarly, nursing homes and other residential care providers create more than 73,000 jobs and add more than $2.1 billion to the economy. Because of the "multiplier" effect, the IHA study found that healthcare in Iowa provides about 333,000 jobs, or more than one-fifth of Iowa's total non-farm work force. In terms of economic impact, Iowa's healthcare industry is worth more than $14.7 billion.