Rural Hospitals Strengthen Northwest Iowa Communities and Economy

In Northwest Iowa, rural hospitals are more than healthcare providers; they are pillars of our economy and community. Hospitals like Buena Vista Regional Medical Center, Spencer Hospital, Lakes Regional Hospital, and Avera Holy Family Hospital don't just deliver vital medical services—they drive economic growth, create jobs, and sustain community well-being. Despite sometimes facing financial challenges, these healthcare institutions are irreplaceable, underscoring why rural healthcare remains essential to the regional economy and the people it serves.

The data used in this article comes from the Iowa Hospital Association, providing an in-depth view of how rural hospitals impact each county’s economy and community. By selecting a county on an interactive map, you can explore specific data for each hospital, including jobs created, local spending, and income contributions.

The Power of Rural Hospitals in Economic Output

Northwest Iowa's rural hospitals are crucial in strengthening the local economy. Through a multiplier effect, each dollar these hospitals spend fuels additional economic activity across the state. For example, Buena Vista Regional Medical Center contributes over $109.7 million, and 
Spencer Hospital's economic output exceeds $200 million. Lakes Regional Healthcare adds $100 million in total output, and Avera Holy Family Health impacts state output by $48.3 million.

With an impressive $1.78 generated for every dollar spent, these hospitals don't just provide healthcare—they are engines of economic growth, continuously reinvesting in and amplifying Iowa's economic vitality.

This economic activity drives additional revenue and business opportunities for surrounding enterprises, from local contractors to suppliers. These contributions are vital in regions like the Iowa Lakes Corridor, where economic growth is closely tied to community health. Rural hospitals anchor the local economy, providing a foundation for continued development and resilience while ensuring that healthcare access remains within reach.

Job Creation: More than Just a Number

Healthcare is a significant employment driver in Iowa, with hospitals alone providing 74,000 direct jobs and supporting an additional 57,000 statewide. In Northwest Iowa, this ripple effect is especially pronounced. For instance, Buena Vista Regional Medical Center supports 399 direct jobs, which grows to 761 jobs when factoring in the employment multiplier.

Spencer Hospital's 493 direct jobs contribute to a total of 940 jobs statewide, while Lakes Regional Healthcare's 328 positions expand to 626. Avera Holy Family Health directly employs 179 people, impacting 342 jobs in total. Each of these hospitals extends well beyond healthcare, serving as a critical engine of job creation across Iowa.

Each hospital job translates to nearly two additional roles, supporting everything from local retail to school enrollment. These jobs help retain skilled professionals, encouraging residents to stay and invest in the region. In a time when rural areas can struggle to attract new talent, rural hospitals offer a stabilizing influence by providing attractive, skilled positions with long-term community investment potential.

Boosting Local Incomes and Quality of Life

Rural hospitals significantly enhance household incomes across The Corridor, fueling local prosperity. For example, Buena Vista Regional Medical Center contributes $44.8 million in earnings, while Spencer Hospital adds $59.3 million.

These figures go beyond payroll; they represent investments in quality of life. Higher household incomes empower employees and their families to spend more on housing, education, and local goods, boosting community vibrancy and stability. Lakes Regional Healthcare contributes $32.3 million to local income, and Avera Holy Family Health adds another $22.9 million, strengthening the region's economic backbone.

The earnings multiplier, where each dollar spent on labor leads to $1.59 in state income, illustrates this growth potential. Local spending power, bolstered by hospital payrolls, keeps money circulating within the community and supports broader state economic growth.

A Future Built on Rural Healthcare

While rural hospitals often face financial challenges, their economic contributions and community value are irrefutable. By keeping rural hospitals robust, Iowa ensures its rural residents receive essential care close to home, supports a stable job market, and promotes a thriving local economy.

These healthcare facilities are more than buildings; they are the heart of Northwest Iowa's community and economic resilience. Rural hospitals are integral to the Corridor's identity and future through steady employment, impactful economic output, and access to life-saving services.

Iowa Lakes Corridor Development Corporation

The Iowa Lakes Corridor Development Corporation serves as the regional economic development leader for Buena Vista, Clay, Dickinson, and Emmet Counties. By fostering collaboration among businesses and community leaders, the Corridor drives growth and stability across the region. With a welcoming environment for existing businesses, new enterprises, and budding entrepreneurs alike, the Corridor is committed to building a strong, sustainable future. Contact us today to discover how we can assist you in achieving your goals