HomeNewsHealth System Creates Over $30 Million Impact on Local Economy

Health System Creates Over $30 Million Impact on Local Economy

Orange City Area Health System (OCAHS) generates nearly 800 jobs that add over $30 million to Orange City, Alton, and the region’s economy, according to the latest study by the Iowa Hospital Association (IHA).  In addition, OCAHS employees by themselves spend over $8 million on retail sales and contribute over one-half million dollars in state sales tax revenue.

“We take our role as a leading employer in our region very seriously,” says Martin W. Guthmiller, CEO of Orange City Area Health System.  “In fact, our strategic plan calls for active engagement in the communities we serve through various ways.  Providing a stable employment base supporting the local economy is but one of those roles.”

“Indeed, Orange City Area Health System has a significant economic impact on Orange City and the surrounding communities,” reports Les Douma, Orange City Mayor. “Not only is the local economy furthered in huge proportions by the nearly 800 jobs, but OCAHS also partners with the City of Orange City in encouraging new retail and industrial recruitment to the region, fosters a supportive role in crafting a vision for the future of the City, and provides leadership in achieving the vision. In addition, the exceptional quality of services provided by OCAHS enhances the quality of life within the region and is one more reason that Orange City is a special place to live.”

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 74,027 people and create another 73,953 jobs outside the hospital sector.  As an income source, hospitals provide $3.65 billion in salaries and benefits and generate another $2.5 billion through other jobs that depend on hospitals.

IHA data show Iowa hospitals added 4,611 employees and more than $747 million to their payrolls (including benefits) between 2004 and 2008, the year for which the latest hospital data is available.

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 354,907 Iowa jobs, or more than one-fifth of the state’s total employment.

“Iowa enjoys the economic security that comes with having one of the finest health care systems in the nation,” said Kirk Norris, IHA president/CEO.  “Iowa hospitals are at the foundation of Iowa’s economy and remain major employers and business partners in all parts of the state.  Just as no one provides the services and community benefits found at our hospitals, there is also no substitute for the jobs hospitals provide and create.”