IHA Report Highlights MDH’s Economic Impact

MACOMB, Ill. – Nearly $200 million dollars. That dollar amount highlights the economic impact McDonough District Hospital brings into local and state economies, per an annual report recently released by the Illinois Health and Hospital Association (IHA).

The $198.3 million is an increase of $10.8 million from the 2022 report. IHA’s recent report also noted that MDH is responsible for 1,096 jobs supporting working families.

According to the IHA, for every dollar hospitals spend in payroll, supplies/services and capital, an additional $1.40 is generated in spending in local and state economies. Also, for every Illinois hospital job, 1.4 jobs are created in other sectors.

MDH’s direct and indirect payroll figures of $108 million, combined with $62.2 million in supplies and services, and just over $28 million in capital, accounts for the $198.3 million infused into economies.

“MDH is proud to be a strong driver, now approaching $200 million, for our local and state economy,” said interim President and Chief Executive Officer Bill Murdock. “We continue to be a leader of excellent patient care and lifesaving services that improves the health and well-being of our west-central Illinois residents.”

One in 10 Illinois jobs are in healthcare.

The report on MDH’s Economic Impact was developed in conjunction with the IHA, whose statewide economic impact report underscores the important role of Illinois hospitals as powerful economic drivers.

Overall, Illinois hospitals and health systems account for $117.7 billion (up $9.6 billion from two years ago) and 445,000 jobs supporting working families.

“As strong community anchors, Illinois hospitals and health systems generate a tremendous amount of economic activity. They are major employers who provide good-paying jobs and large buyers of supplies and services,” said IHA President and CEO A.J. Wilhelmi. “Their impact on the economy comes in addition to the work of providing essential healthcare services, enhancing individual and community health and well-being, and addressing health disparities so all individuals can achieve optimal health.”

Estimates of the Illinois hospitals’ economic benefits were based on the Regional Input-Output Modeling System II (RIMS-II) developed by the U.S. Bureau of Economic Analysis (BEA). The Final Demand multipliers, obtained from BEA RIMS-II were applied to 2022/2023 Medicare cost report data of hospital jobs and spending to obtain the “ripple” effect of jobs and spending throughout the economy.

About IHA

The Illinois Health and Hospital Association, with offices in Chicago, Naperville, Springfield and Washington, D.C., advocates for Illinois’ more than 200 hospitals and nearly 40 health systems as they serve their patients and communities. IHA members provide a broad range of services—not just within their walls, but across the continuum of healthcare and in their communities. Reflecting the diversity of the state, IHA members consist of nonprofit, investor-owned and public hospitals in the following categories: community, safety net, rural, critical access, specialty and teaching hospitals, including academic medical centers. For more information, see team-iha.org. Like IHA on Facebook. Follow IHA on X.