Myrtue Medical Center’s Economic Impact on Local Economy Tops $29 Million in 2019

Economic Impact-Myrtue Medical Center-5.19

In all, Iowa’s Healthcare Sector Provides 342,914 Jobs Across State

DES MOINES – According to the latest economic impact study by the Iowa Hospital Association, Myrtue Medical Center generates 613 jobs that add $29.7 million to Shelby County’s economy. A multiplier methodology is used to determine the level of impact, which means that the health sector and employees in the health sector purchase a large amount of goods and services from local businesses, having a multiplying effect in the community. It is also estimated that Myrtue Medical Center’s employees by themselves spend $4.3 million on retail sales and contribute $259,832 in state sales tax revenue.

“At a time when many rural hospitals throughout the country are struggling financially, with some closing, this report is critical in illustrating the enormous impact that hospitals in rural areas have on the economies of the communities they serve,” said Barry Jacobsen, CEO-Myrtue Medical Center.

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 76,203 people and create another 64,453 jobs outside the hospital sector. As an income source, hospitals provide $5 billion in salaries and benefits and generate another $2.7 billion through other jobs that depend on hospitals.

“Hospitals positively influence their local economies not only with how many people they employ and the salaries of those employees, but also through hospital purchases from local businesses as well as the impact of employee spending and tax support,” said Kirk Norris, IHA president/CEO. “Whether at the local level or statewide, there are few Iowa employers that generate economic activity comparable to hospitals.”

In all, the 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 $18 billion to Iowa’s economy while directly and indirectly providing 342,914 jobs, or about one-fifth of the state’s total non-farm employment.

The Iowa Hospital Association is a voluntary membership organization representing hospital and health system interests to business, government and consumer audiences. All of Iowa’s 118 community hospitals are IHA members.