Hospital Creates $12 Million Impact on Local Economy

Lucas County Health Center (LCHC) generates 284 jobs that add $12,446,090 to Lucas County’s economy, according to the latest study by the Iowa Hospital Association. In addition LCHC employees by themselves spend $2,058,555 on retail sales and contribute $123,513 in state sales tax revenue.

“Every day Lucas County Health Center strives to provide our patients and community with the best possible outcome,” says Veronica Fuhs, CEO. “It is satisfying to know that we are able to not only provide our community with quality healthcare, but that we are also able to invest in our community.”

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 71,324 people and create another 50,131 jobs outside the hospital sector. As an income source, hospitals provide $4.2 billion in salaries and benefits and generate another $1.8 billion through other jobs that depend on 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 $14.3 billion to Iowa’s economy while directly and indirectly providing 293,758 jobs, or about one-fifth of the state’s total non-farm employment.

“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.”

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.