Impact of Health Services on the Local Economy

Impact of Health Services on the Local Economy

The contributions of a hospital or health care system to the local economy are often overlooked.  Oftentimes, when people think of health care, they think in terms of their personal health and experiences in the health care sector; however, health care services have a significant impact on the economy of an area. The primary economic factors include the number of people employed and the impact of employees’ spending and tax payments. 

According to a report completed by the Office of Local Government, K-State Research and Extension, health services in Dickinson County employ 877 individuals which is 8.7 per cent of all job holders in the county.  This equates to over $40M in wages pumped into the local economy through health services jobs which includes physicians, dentists, home health care, hospitals, nursing homes, veterinary services, and others. After applying the secondary impact or ‘ripple effect’ that comes through the purchases of household goods and services and local businesses buying and selling to each other, the impact from the health sector is over $47M per year.

According to the report, in 2013 Dickinson County had almost $791M in total personal income and retail sales over $222M.  The retail sales generated by the health sector are estimated at over $13M and the sales tax generated was $134K.   

In summary, the health services sector of Dickinson County plays a large role in the area’s economy.  Health services represent one of the largest employers in the area and serves as one of the largest contributors to income.  The health sector also has indirect impacts on the local economy by creating additional jobs in other sectors.  The health sector is a substantial contributor to retail sales in the region. 

All of this demonstrates the importance of the health care sector to the economy of Dickinson County.  However, there are other ways the health care sector also contributes to the county.  The health care industry helps to preserve the population base and strengthen communities.  Health care facilities also have outreach programs that enhance the quality of life for community residents. 

Because of industry trends in health care, many rural communities face significant challenges.  These challenges will persist as government reimbursements continue to decrease and the economics of providing health care change.  It is in every one’s best interest to support local health care services. 

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