Hospitals make a great impact on an area, on a community, and it’s not just in keeping people healthy and safe.
The fiscal contribution hospitals make on a population often support a local economy.
Two area hospitals have released their economic impact on the state’s economy.
Gibson Area Hospital and Health Services (GAHHS) and Iroquois Memorial Hospital (IMH) have released their respective reports. Each were developed in conjunction with the Illinois Health and Hospital Association (IHA) and its statewide economic impact report.
“We are proud to serve our community by providing essential healthcare services, strengthening the state economy and supporting working families with good jobs,” said Rob Schmitt, CEO, GAHHS. “Our spending on supplies and capital improvements spurs economic activity in the community. Gibson Area Hospital has a critical role in Illinois’ economy.
“To continue to retain and create jobs, attract businesses to our community, and provide access to high-quality healthcare services, Illinois hospitals must have the funding support they need to remain fiscally sound,” said Schmitt in a news release.
IMH CEO Don Williams echoed that statement in the IMH news release.
According to a new report, GAHHS provides $147 million in payroll for direct and indirect jobs for the community, and generates a total annual impact of $237.7 million on the state economy.
IMH provides 787 direct and indirect jobs for the community, and generates a total annual impact of $77.6m on the state economy.
Key findings in the GAHHS are:
— Gibson Area Hospital & Health Services employs over 800 people directly, expending $61,938,362 a year on direct payroll, creating 1,130 in indirect jobs with $85,208,605 in indirect payroll.
— Gibson Area Hospital & Health Services spends $80,063,946 on supplies (including professional fees and purchased services) and $10,517,901 on capital — both direct and indirect — for a total of $90,581,847 combined.
— Gibson Area Hospital & Health Services has a total annual economic impact of $237.7 million.
IMH findings included:
Among the report’s key findings:
— Iroquois Memorial Hospital employs 327 people directly, expending $19,652,530 a year on direct payroll, creating 461 in indirect jobs with $27,035,986 in indirect payroll.
— Iroquois Memorial Hospital spends $30,346,344 on supplies and $540,001 capital—both direct and indirect—for a total of $30,886,345 combined.
— Iroquois Memorial Hospital has a total annual economic impact of $77.6m.
In addition, the report identifies the economic impact of Illinois hospitals statewide:
— Illinois hospitals and health systems have a total impact of $101.3 billion annually on the state’s economy.
— One in every 10 Illinois jobs is in healthcare, with the state’s hospitals and health systems employing about 285,000 people, representing 205,000 direct jobs (FTEs).
— Illinois healthcare employment has grown by 32.1 percent between 2000 and 2019. In contrast, overall Illinois employment, after declining in 2010, has grown by 2.8 percent in recent years.
— Healthcare and social assistance leads Illinois’ job growth, creating more Illinois jobs for working families than any other industry. Between 2000 and 2019, this sector created 211,300 new jobs compared to manufacturing losing 279,900 jobs. In addition, the sector is expected to grow 13.5 percent by 2026.
— For every hospital job in Illinois, 1.4 jobs are created in other sectors.
— For every dollar hospitals and health systems spend, an additional $1.40 is generated in state and local economies.
“Illinois hospitals and health systems provide vital healthcare 24 hours a day, seven days a week, 365 days a year to millions of people across our state, regardless of their ability to pay. Often unnoticed, though, is the critical impact Illinois hospitals have on their local economies and our state’s economy,” says IHA President and CEO A.J. Wilhelmi. “In addition to serving as centers of healing and hope, Illinois hospitals are also powerful drivers of economic activity and jobs. They spur additional economic activity through spending on goods, services and capital improvements.
“To continue to attract business, create jobs and maintain community health, it is critical that Illinois have strong and adequately funded healthcare providers,” Wilhelmi adds. “Illinois hospitals have sustained billions and billions of dollars in state Medicaid and federal Medicare cuts since 2010. Just as lives depend on our hospitals, our hospitals depend on the support of government and the public.”
Gibson Area Hospital is certified by Medicare as a Critical Access Hospital in Gibson City. The organization’s vision is “to be THE model of excellence in community based health care” and strives to provide accessible care throughout an eight county service area which includes nine family health locations in addition to clinics in Gibson City. A full spectrum of care, from obstetrics to geriatrics, enables Gibson Area Hospital & Health Services to meet the ongoing needs of patients at every age, such as orthopaedic care, behavioral wellness services, and fitness programs. An employer of more than 800 individuals representing twelve different counties, Gibson Area Hospital & Health Services and its employees are committed to supporting many local organizations and participate in a variety of outreach activities to make a difference, according to the news release.
Serving more than 50,000 people annually in east-central Illinois and west-central Indiana, Iroquois Memorial Hospital is a 25-bed hospital located in Watseka. The hospital facility is comprised of clinical and diagnostic services dedicated to providing high quality health care services to the community. These services include but are not limited to an Emergency
Room, full service OR suites, an inpatient care unit, therapy services, advanced medical imaging, Home Health, and Hospice Care. The hospital operates rural health clinics in Watseka, Gilman, Milford, and Kentland, Indiana, according to the news release. The hospital also operates a skilled nursing facility, Iroquois Resident Home, which is attached to the hospital property. Visit iroquoismemorial.com, Facebook.com/imhrh, LinkedIn.com/iroquoismemorialhospital, Twitter.com/imh, Instagram.com/imh, Imhblog.info, and Google.com/iroquoismemorialhospital for more information.