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Sanford Health Contributes $11.9 Billion to Midwest Economy

Dec 03, 2021 09:53PM ● By Med Magazine

Sanford Health boosted the economies of South Dakota, North Dakota, Minnesota and Iowa by a total of $11.9 billion in 2020, according to a new study conducted by an external firm.

“Making our communities stronger and healthier is at the core of everything we do at Sanford Health,” said Bill Gassen, president and CEO of Sanford Health. “Our economic activity supports families, neighborhoods and communities for generations to come, and our growing workforce in turn re-invests in the many areas we proudly call home.”

Sanford Health is the largest employer in South Dakota and one of the largest employers in North Dakota. In 2020, the study found that more than 73,000 jobs generating $4.7 billion in wages and earnings were directly and indirectly attributed to Sanford Health.

In every community with a Sanford clinic, employment salaries are contributing significantly to the local economy. Households supported by Sanford Health spent $6.3 billion on goods and services in 2020.

Sanford Health contributed $4.5 billion to economic activity in South Dakota and $4.3 billion in North Dakota in 2020. Minnesota saw a $2.6 billion economic impact from Sanford Health, while Iowa benefited from $361.9 million in economic activity from Sanford.

Sanford Health’s direct contributions to GDP invest up to $30.1 million in local taxes, $78.4 million in state taxes and $552.7 million in federal taxes annually. This total climbs to more than $661.1 million in supported taxes.

The construction of Sanford facilities in the past four years supported an average of 1,300 annual jobs with a total estimated direct, indirect and induced construction GDP impact of $800 million.

In addition to Sanford Health’s economic impact, the health system’s community benefit totaled $618 million in 2020, including research and training, education and clinical services.* Community benefit is the contribution made by nonprofit organizations to support the needs of the underserved, a federal requirement under the Affordable Care Act.

“Our care extends beyond our medical centers and clinics,” said Gassen. “We are active in the communities we serve, investing substantial resources to drive more opportunity and better health for all.”

This study was conducted by an external firm utilizing IMPLAN, a nationally recognized economic impact modeling system based on 2019 data to calculate the 2020 impact from Sanford operations in North Dakota, South Dakota, Minnesota and Iowa. The methodology estimates economic relationships among industries, households and government. This analysis includes both the Sanford Health Enterprise and Good Samaritan Society operations in these four states.

To view at the full impact report, visit sanfordhealth.org/communityimpact

*Source: 2020 IRS 990