Community hospitals vital to local economy
Recently, Idaho Gov. Butch Otter lauded the health care and hospital sectors as drivers of Idaho’s economy. When considering the impacts community hospitals have on Idaho’s cities and towns, it’s recognition that’s well deserved.
As one of the state’s largest economic sectors, community hospitals employ a significant number of Idahoans. With over 23,000 employees, Idaho hospitals provide more jobs than transportation, computer and electronics manufacturing, wood products, or mining. The jobs are along a wide continuum of career options — from nursing and medical specialists, to technology, finance, and management. The average statewide salary in community hospitals — $45,000 per year — remains higher than many other sectors.
In a recent study, the economic impact of Idaho’s community hospitals was assessed by a University of Idaho economics researcher. The study focused on not only the direct numbers of employees and dollars hospitals generate but the subsequent jobs and economic activity that hospitals have on local economies. The numbers were significant:
• For every job at the hospital, another 1.49 jobs are created in communities throughout Idaho. In total, over 57,800 jobs are directly and indirectly attributable to Idaho’s community hospitals.
• Payroll for hospital employees reached $1.06 billion for fiscal year 2009. When the unique multipliers for the healthcare sector in each county are assessed, the impact of these payroll dollars on our state total over $2.39 billion. These employee wages help them to purchase all types of local goods and services as well as supporting civic groups, churches, and philanthropic giving.
• Hospitals also contribute significantly to the state and local tax base, most often in the realm of sales and property taxes. Last year, hospitals accounted for over $115 million in state and local tax contributions.
• As a major industry, hospitals are a cornerstone for significant economic activity. When the impacts are fully assessed, Idaho’s hospitals are responsible for $5.67 billion of Idaho’s economy.
In most communities, hospitals are one of the top five employers. In addition to providing high quality local health care, they are crucial in contributing to the economic health and growth of our cities and towns. Consider the impact on attracting and retaining businesses if local medical and health services aren’t available to employees and their families.
Community hospitals are an important element in our economic development and recovery of our state. Idaho’s community hospitals prove time and again to be critical to the stability of local economies, while providing good jobs for Idaho families. It is vital that we focus on strengthening our local communities in the tough economy we currently face. Investing in the good jobs and economic growth Idaho’s community hospitals provide is a sound strategy
Sheryl Rickard is CEO of Bonner General Hospital, Kathy Moore is chairman of the Idaho Hospital Association and CEO of the West Valley Medical Center, and Steven Millard is president, Idaho Hospital Association.