2014 Economic Impact Awards 30+ Years in Operation Winner: Mercy Hospital Springfield

As the largest employer in the Queen City with more than 9,000 employees, Mercy Hospital Springfield’s economic impact goes beyond its roughly $1.6 billion in spending in the area and $556 million in payroll.

What started as a four-bed facility in 1891 has grown into a conglomerate of 233 hospitals and clinics, including the 866-bed main hospital in central Springfield.

“That growth creates needed space for our growing patient load, as well as providing construction-related jobs, with 91 percent of the labor coming from the local community,” says Sonya Kullmann, senior media relations specialist with Mercy Springfield.

That local construction includes the $115 million Mercy Orthopedic Hospital, which opened in October 2013, and the $28 million Mercy Rehabilitation Hospital Springfield, which opened in April.

New facilities mean more patients. In 1891, the sisters served 71 patients. That number has ballooned to more than 1.4 million office visits in 2013. That’s coupled with 41,259 inpatient discharges, 762,535 outpatient visits, 41,154 surgeries and 3,699 births.

The increase in demand for health care services is, at least partially, contributed to the quality care available, Kullmann says.

According to a 2011 study by the University of Missouri-St. Louis on Mercy’s economic impact on Springfield, Mercy provided services to more than 1,400 out-of-state patients.

Kullmann says medical destination program agreements with Lowe’s (NYSE: LOW) and Wal-Mart Stores Inc. (NYSE: WMT) has helped bring those patients to the area.

“That not only speaks to the quality and affordability of the procedures for people within our community, but also brings in people from all over the country who spend money in local restaurants and at area attractions while their loved ones are here for their procedure,” she says.

Mercy directly generated $22 million for state and local taxes in 2011, and by bringing patients to the area, countless more revenue streams are created. The city’s “robust health care capacity … is one of the factors that helps attract and retain residents and workers,” Kullmann says.

Keeping those new residents and workers healthy also does more than grow Mercy – it helps grow Springfield. According to the UMSL study, each hospital job created another 1.06 jobs in supporting fields.

“The ripple effect also magnifies the impact of Mercy’s $556 million payroll, with households employed in related industries generating an additional $552 million in wages,” Kullmann says.

Originally supported by a single doctor, the local system has 983 physicians today. Mercy employees earn an average salary that’s 34 percent higher than the average Springfield household at $55,600, excluding benefits that include health and dental insurance, a 401(k) plan, tuition reimbursement and more.

“Additionally, our Mercy Clinic doctors and co-workers write personal checks twice each year for a campaign they’ve dubbed Force for Good,” Kullmann says, noting so far the campaign has given nearly $1.6 million to numerous organizations in the Ozarks.

Mercy’s growth in spending and wages is projected to increase 2 percent annually during the next 10 years, an estimated $21 billion in economic benefit to the city.[[In-content Ad]]