Medicaid expansion highlights hospital economic impact
Orange City Area Health System (OCAHS) generates nearly 700 jobs that add $26.8 million to the region’s economy, according to the latest study by the Iowa Hospital Association (IHA). In addition, OCAHS employees by themselves spend $6.4 million on retail sales and contribute nearly $387,000 in state sales tax revenue.
“Once again, we are reminded of the significant economic role played by health care locally, regionally, and nationally,” reports Marty Guthmiller, CEO of Orange City Area Health System. “Although a ‘by-product’ of our core mission of providing healthcare to the region, this impact cannot be overlooked.”
The IHA study examined jobs, income, retail sales, and sales tax produced by hospitals and the rest of the state’s healthcare sector. 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, Iowa hospitals provide more than $4 billion in salaries and benefits, and generate another $2.2 billion through other jobs that depend on hospitals.
According to the IHA, as Iowa lawmakers continue to debate expanding Iowa’s Medicaid program to cover more low-income residents, one aspect of the debate is the economic impact of expansion on both the state and its community hospitals. According to IHA President and CEO Kirk Norris, in terms of overall impact, there is no bigger economic issue in Iowa than Medicaid expansion. “Medicaid expansion would bring as much as $600 million a year to Iowa’s economy,” reports Norris.
By insuring as many as 150,000 low-income Iowans, Medicaid expansion would also help alleviate the growing amount of charity care and bad debt among Iowa hospitals, according to IHA reports. In 2012, Iowa hospitals provided more than $1 billion in uncompensated care.
Orange City Area Health System is a comprehensive health system consisting of a critical access hospital, four primary care clinics, OB, radiology, and surgical services, physical therapy, home health and hospice, a senior living facility, and nursing home care. More information can be found at ocHealthSystem.org.