Health center impacts economy

DES MOINES ? As Iowa lawmakers continue to debate expanding Iowa?s Medicaid program to cover more low-income residents, one aspect of the debate is the economic impact of expansion on both the state and its community hospitals.

?We can?t ignore the fact that Medicaid expansion would bring as much as $600 million a year to Iowa?s economy,? said Iowa Hospital Association President and CEO Kirk Norris. ?That is a huge influx of dollars that would spread across the state. It?s not unlike a major business choosing to relocate to Iowa, but the impact is much broader and beneficial to far more Iowans. In terms of overall impact, there is no bigger economic issue in Iowa than Medicaid expansion.?

By insuring as many as 150,000 low-income Iowans, Medicaid expansion also would help alleviate the growing amount of charity care and bad debt among Iowa hospitals. In recent years, charity care and bad debt ? also known together as uncompensated care ? have grown 10 percent annually. In 2012, Iowa hospitals provided more than $1 billion in uncompensated care, primarily to uninsured patients.

?Uncompensated care will always be part of the hospital financial picture, but the growth we are seeing as more and more people find themselves unable to afford insurance is unsustainable,? said Norris. ?It impacts the ability of hospitals to maintain services, modernize facilities and pay competitive wages. Medicaid expansion would make a real difference in this regard.?

Iowa community hospitals generate more than 133,000 jobs that add nearly $6.2 billion to the state?s economy, according to IHA?s latest Iowa hospital economic impact report.

In addition, Iowa hospital employees by themselves spend $1.8 billion on retail sales and contribute nearly $106 million in state sales tax revenue. In most counties, as in Jefferson County, the hospital is one of the largest employers.

The Jefferson County Health Center generates 261 jobs that add $11,856,033 to Fairfield and the Jefferson County economy, according to the latest study by the Iowa Hospital Association.

In addition, JCHC employees by themselves spend $3,270,286 on retail sales and contribute $196,217 in state sales tax revenue.

?These figures substantiate our importance to not only the physical health of our community, but the economic health as well,? said Deb Cardin, administrator and chief executive officer of Jefferson County Health Center.