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FMCH Creates $45,255,271 Impact on Local Economy

DES MOINES – Fort Madison Community Hospital (FMCH) generates 494 jobs that add $45,255,271 to Lee County’s economy, according to the latest study by the Iowa Hospital Association.  In addition, FMCH employees by themselves spend $10,981,954 on retail sales and contribute $658,917 in state sales tax revenue.

“We understand the vital role Fort Madison Community Hospital plays in the economic success of Lee County. We continue to focus on providing quality health care and a safe, engaging place for our employees to work while maintaining financial viability.  We are proud to be an integral part of the community,” expressed Jeremy Alexander, President/ CEO of FMCH.

“FMCH is definitely an important contributor to the strength of the Lee County economy.  We are fortunate to have such a robust employer, community partner and provider of quality health care services in Lee County,” commented Tim Gobble, Executive Director of the Fort Madison Partners.

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 74,691 people and create another 57,586 jobs outside the hospital sector. As an income source, hospitals provide $4.8 billion in salaries and benefits and generate another $2.3 billion through other jobs that depend on hospitals.

In all, Iowa’s health care sector, which includes offices of physicians, dentists and other health practitioners, nursing home and residential care, other medical and health services and pharmacies, contributes $17 billion to the state economy while directly and indirectly providing 330,308 jobs, or about 20 percent of the state’s total non-farm employment.

“Hospitals and health care are vital to the economy in all parts of the state, both urban and rural,” said IHA president and CEO Kirk Norris. “With more than 330,000 jobs, health care is one of Iowa’s largest employers, and hospitals remain, by far, the biggest contributor to that enormous impact.

“In Iowa cities and counties, hospitals are uniformly among the largest employers. Those jobs bring income to Main Street businesses and support local government services and infrastructure through taxes.”

As possible cuts to Medicaid and Medicare are contemplated, hospital services and jobs are put at risk – and with them a large swath of the Iowa economy.

“These facts need to be front-of-mind among our political leaders in Washington, DC and Des Moines. They need to understand that when legislation and regulations financially impact hospitals and health care, they also impact jobs and business in every part of the state.”

The Iowa Hospital Association is a voluntary membership organization representing hospital and health system interests to business, government and consumer audiences.  All of Iowa’s 118 community hospitals are IHA members.

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