Health Center creates $8.2 million impact on local economy

(Editor’s Note: This article is the second of a three-part series on the impact Lucas County Health Center has in our community.)

Nearly 270 community jobs linked to LCHC’s operation
Lucas County Health Center (LCHC) may be a small rural hospital, but it plays a major role in supporting the local economy. Guided by its Board of Trustees and management team, LCHC employs 179 people and creates more than $6.1 million in worker salaries. Considering the Health Center’s tax asking will generate about $600,000 in the next fiscal year, LCHC may yield Lucas County taxpayers’ biggest return on their investment.

“When you look at the property tax levy proposed for the next fiscal year compared to what the Health Center’s financial impact on the community will be, it is easy to see we’re a pretty good investment for Lucas County,” said LCHC chief executive officer Dan Minkoff. “The property tax levy percentage will remain constant this year, but the actual money generated from it will decrease to $632,000. The direct salaries paid back to LCHC employees total slightly more than $6.1 million, much of which is spent right in Lucas County. That means the community receives a return of nearly ten times the initial investment.”

While a ten-fold return on investment is very impressive, the Health Center is more proud – and deservedly so – of its 24-hour emergency department, surgical center and quality care provided to all who pass through its doors. Minkoff stated the Health Center’s mission is to promote and enrich the health and well being of those it serves. And while its focus is to provide quality family-centered healthcare, he is pleased that the Health Center has an extremely positive financial impact on the community as well.

“LCHC doesn’t operate just to create jobs and improve the local economy,” Minkoff said, “but that positive financial benefit is a welcome by-product of our work to keep excellent health care available in Lucas County.” The indirect result is a financial ripple effect throughout the community.

According to a recent study by the Iowa Hospital Association (IHA), the operation of LCHC also makes a major indirect contribution to the local economy. The people employed by the Health Center largely live within the county, spending their wages locally on goods and services. LCHC indirectly creates an additional 70 jobs throughout the community. The combined wages of those jobs and wages paid to LCHC employees result in a total positive economic impact of more than $8.2 million. The economy is further fueled by the $3.4 million generated through taxable retails sales indirectly linked to the Health Center. When considering these indirect benefits combined with direct salaries paid back to area employees, Lucas County’s return on investment swells to nearly 13 times the generated tax asking.

“The return on the community’s investment clearly justifies the tax asking,” Minkoff said, “We strive to use those funds to ensure the delivery of quality healthcare in Lucas County now and in the future.”

LCHC, which is the largest employer in a local health sector that also includes physicians, extended care facilities and home health services, is vitally important as a community employer and to the Lucas County economy. The IHA study synopsis states, “The economic impact of the health sector upon the economy of Lucas (County) is tremendous.” It goes on to report when LCHC increases or decreases its scope of operations, there is a corresponding increase or decline in the local economy. It also indicates that the presence of a viable hospital is critical for future economic development stating, “For the attraction of industrial firms, businesses and retirees, it is crucial that (Lucas County) have a quality health sector.”