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Mercy Medical Center Creates $195 Million Impact on Local Economy

Mar 28, 2015 05:15PM ● By MED Magazine

This year’s economic report from the Iowa Health Association finds that Mercy Medical Center’s impact on the region’s economy continues to grow.

The report finds that Medical Center-Sioux City generates 1,292 jobs that add nearly $136 million to Siouxland's economy.  In addition, Mercy employees spend $56 million on retail sales and contribute $3.4 million in state sales tax revenue.

According to the newly released IHA report, Mercy has an annual payroll of $97.7 million.  Mercy jobs have a positive "spin-off" effect in the community that creates 2,261 total jobs in the area.  The employment statistics include the impact of the main medical center and clinics. Mercy also manages or owns rural hospitals across Siouxland.

The IHA study examined the jobs, income, retail sales and sales tax produced by hospitals and the rest of the state’s healthcare 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.

 “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.”