IHA’s latest economic impact report shows Iowa’s 118 hospitals are worth more than $6.1 billion dollars to the state’s economy.  It’s unusual to think of hospitals as economic powerhouses, but there is no denying their impact.  As the information below shows, hospitals are good for Iowa’s economic health: 

• In Iowa, hospitals now employ more than 74,000 people.  In most counties where there are hospitals, the hospital (or hospitals) are among the five largest employers – and often the number-one employer.  Even in major cities with multiple large employers, hospitals dominate.  In Des Moines, hospitals employ more people than Principal and Wellmark combined.  Hospitals in Davenport provide more jobs than even the gigantic John Deere plant.  In Council Bluffs, the Ameristar Casino is the city’s biggest single employer, but the combined workforces of the two local hospitals are much bigger. 
• These are not ordinary jobs.  Most hospital jobs require a college degree and/or specialized training and offer pay that is commensurate with that advanced education.  Because they each have a large workforce, hospitals are places where careers can be grown and leaders are created (and hospitals will typically assist employees who want to further their education).  This means hospitals are important weapons against Iowa’s persistent “brain drain,” because they are employers that attract young workers and families and help keep them in the community for the long-term. 
• Hospitals are more than the people they employ and the wages they pay as their economic impact ripples out into the community.  In Iowa, this multiplier effect creates thousands of jobs worth billions of dollars.  Hospitals buy products that support local businesses.  They support local charities and community programs with dollars, manpower and expertise that few other organizations can muster.  Hospital employees are a huge market that helps keep local dollars in the local economy.  They buy groceries, cars, fuel, homes and countless other products.  They also pay taxes that keep schools open, streets maintained and police officers on watch. 

IHA believes it is important to view hospitals through the economic lens, especially for our government leaders who control much of the revenue hospitals depend upon.  As those leaders make important economic choices (between supporting more casinos, for example, or protecting the Medicaid budget), they must remember that hospitals are a wise investment. 

Shortchanging hospitals means shortchanging Iowa’s economy and threatening its chances for future growth.