January 17, 2008

Mercy Creates $148 Million Impact on Local Economy

Mercy Medical Center—Sioux City generates 1,676 jobs that add more than $148 million to Siouxland’s economy each year, according to a study by the Iowa Hospital Association (IHA). In addition, Mercy employees spend more than $62 million on retail sales and contribute $3.1 million in state sales tax revenue.

According to the newly released IHA report, staff members at Mercy Medical Center’s main campus earn $97.8 million in salaries. Those Mercy jobs have a positive “spin-off” effect in the community that creates 3,210 total jobs in the area, which have a total economic impact estimated at more than $148.2 million. Mercy’s presence in the region engenders taxable retail sales of nearly $62.2 million and more than $3 million a year in state sales tax revenue.

The IHA statistics only include the impact of the main medical center itself. The overall impact would be further broadened if added the salaries and community benefits generated by Mercy’s 29 family practice clinics, 8 specialty clinics and 4 rural hospitals in the region.

“The IHA study shows that Sioux City’s healthcare providers are vitally important as community employers and very important to the community’s economy,” said Paul Dougherty, president and CEO of Mercy Medical Center—Sioux City.

The IHA report 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 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 71,446 people and create another 83,082 jobs outside the hospital care sector. As an income source, hospitals provide $3.2 billion in salaries and benefits and generate another $2.5 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 375,470 Iowa jobs, or more than one-fifth of the state’s total employment.

“Iowa hospitals are major employers and business partners throughout the state,” said Kirk Norris, IHA president/CEO. “As Iowa continues to look for opportunities to grow its economy and stabilize its population, a strong health care system, anchored by well-supported community hospitals, is essential.”