Mercy Medical Center Sioux City
Sioux City Hospitals Impacts Local Economy by $233 Million
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St. Luke’s Regional Medical Center and Mercy Medical Center—Sioux City generate 2,589 jobs that add nearly $233.2 million to Siouxland’s economy each year, according to a study by the Iowa Hospital Association (IHA). In addition, Mercy and St. Luke’s employees spend more than $97 million on retail sales and contribute $5.8 million in state sales tax revenue.
According to the newly released IHA report, St. Luke’s 1,165 hospital employees earn more than $60.7 million in salaries. In turn, St. Luke’s spin-off effect in the community creates 2,171 total jobs in Siouxland which have an overall economic impact of $89.7 million. St. Luke’s presence yields taxable retail sales of nearly $37.3 million and $2.2 million in state sales tax revenue. The statistics only include the impact of the main medical center itself and do not include the greater impact of salaries and community benefits generated by St. Luke’s clinic network.

The IHA report stated the 1,424 staff members at Mercy earn $97.1 million in salaries. Those Mercy jobs have a positive “spin-off” effect in the community that creates 2,645 total jobs in the area with a total economic impact estimated at $143.5 million. Mercy’s presence in the region yields taxable retail sales of $59.7 million and $3.6 million in state sales tax revenue. The statistics only include the impact of the main medical center itself. Mercy also manages or owns a network of family practice clinics, specialty clinics and rural hospitals across Siouxland that provide critical services and economic benefits to the communities they serve.

“St. Luke’s is very privileged to call Sioux City home. Our mission is not only to provide the best outcome for every patient every time but also to improve overall life in Siouxland,” says Peter Thoreen, President and CEO of St. Luke’s Health System. “As a community partner, we understand the impact of our hospital extends beyond health care. We remain committed to bringing positive growth and development to the people of Siouxland.”

"Mercy Medical Center has been an integral part of the Siouxland area for nearly 125 years and our commitment to the region remains as solid as the day the Sisters of Mercy opened the first hospital in Sioux City at the request of Sioux City business leaders," says Bob Peebles, the President and CEO of Mercy. "We recognize and accept our role as a corporate citizen of Siouxland and renew our commitment to continue to care for those who depend on us when they need our help."

Iowa community hospitals generate more than 133,000 jobs that add nearly $6.2 billion to the state’s economy, according to IHA’s latest Iowa hospital economic impact report. In addition, Iowa hospital employees by themselves spend $1.8 billion on retail sales and contribute nearly $106 million in state sales tax revenue.

“In most Iowa counties, hospitals are among the three or four largest employers, but it’s more than just providing jobs,” said IHA President and CEO Kirk Norris. “People are often unaware of the broader contribution that hospitals make to their local economies, the significance of hospital purchases with local businesses and the impact of their employees’ spending for the entire region.”

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 71,169 people and create another 62,198 jobs outside the hospital sector. As an income source, hospitals provide more than $4 billion in salaries and benefits and generate another $2.2 billion through other jobs that depend on hospitals.

In all, Iowa’s health care 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 more than one-fifth of the state’s total employment.

For more information, contact:
Jim Wharton, Mercy Medical Center- Sioux City, (712) 279-2732
Christie Finnegan, St. Luke’s,
(712) 279-3660