Economic Impact - old

INVESTING IN RURAL COMMUNITIES & BEYOND Sanford Health Economic Impact Report

Tra n s f o r m i n g t h e h e a l t h o f o u r c o m m u n i t i e s At Sanford Health, we look at our business through the lens of our values of health and healing. These values lead us to build partnerships that strengthen our communities and promote a healthier lifestyle and environment for all.

This report showcases how Sanford’s economic impact ripples through the communities we serve. Every Sanford paycheck contributes to jobs in the surrounding community. Every clinic supports local businesses and city budgets. Construction of Sanford facilities not only expands the communities

Making our communities stronger and healthier is at the core of everything we do at Sanford Health.

we can serve, but it also expands that community’s economic benefits. With $11.9 billion contributed to the economy in 2020, our economic strength brings prosperity to the region and provides funding to underserved

BILL GASSEN PRESIDENT & CEO

populations through our Community Benefit programs.

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More than $4.7 billion in labor income was generated through Sanford's

TOTAL ECONOMIC IMPACT

direct, indirect and induced economic activity in 2020.

LABOR INCOME

In 2020, Sanford's operations generated $11.9 billion in total output to the communities we

Sanford's operational economic activity contributed to $6.3 billion to the GDP.

serve. This snapshot represents Sanford's direct and indirect economic activity across South Dakota, North Dakota,

HOUSEHOLD SPENDING

Minnesota and Iowa.

Our direct contributions to GDP invest up to $30.1 million in local taxes, $78.4 million in state taxes and $552.7 million in federal taxes annually. This total climbs to more than $661.1 million in supported taxes.

SUPPORTED TAXES Our four-year (2017 — 2020) total estimated direct, indirect and induced construction GDP impact was $800.0 million — which includes an average of 1,300 annual jobs.

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CONSTRUCTION IMPACT 4

E CO N O M I C I M PAC T

BY R E G I O N 2020 brought unique challenges with the COVID-19 pandemic.

Sanford Health has been a steady hand in the many communities we serve.

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In 2020, Sanford Health employed more than 38,000 people in South Dakota, North Dakota, Minnesota and Iowa.

This direct employment includes full-time, part-time and seasonal workers.

Sanford employees earn wages for their work and spend much of their take-home pay locally on things like groceries,

IMPACT ON EMPLOYMENT

housing and utilities. This spending supported an additional 19,000 jobs in industries like real estate and food service.

This is considered induced impact.

Sanford Health supported more than

LABOR INCOME

$1.7

Billion Operation

73,000 jobs in 2020 through direct,

$37.2

Million Average Annual Construction

EMPLOYMENT

26,100 Jobs

LABOR INCOME

$1.7

Billion Operation

$29.1

Million Average Annual Construction

EMPLOYMENT

26,200 Jobs

indirect and induced effects.

SOUTH DAKOTA

Sanford Health does more than provide health care — our economic activity also creates jobs, fills municipal budgets and supports local businesses across the Upper Midwest.

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NORTH DAKOTA

LABOR INCOME

$1.1

Billion Operation

$14.5

Million Average Annual Construction

EMPLOYMENT

17,200 Jobs

73,000+JOBS

MINNESOTA

LABOR INCOME

$139.8

Million Operation

$2.9

Million Average Annual Construction

EMPLOYMENT

3,300 Jobs

Includes direct, indirect and induced economic activity.

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•

As the largest employer

Sanford brings more people

in South Dakota,

into this community than any

Sanford’s economic activity supported more

other business in Sioux Falls.

than 2 6 ,1 0 0 j o b s

When we think about economic

for South Dakotans,

impact, we think about its

representing more than

employee base — which is huge.

$ 1 .7 b i l l i o n in wages.

•

But just as huge is the number

Our combined

of people who come in from up

economic impact added $ 2 . 3 b i l l i o n to

to 1,000 miles away because of

South Dakota’s GDP

Sanford’s specialized care. The

and contributed

employees, the organization

$ 4 . 5 b i l l i o n to

and the people combined in

the economy.

•

totality, it’s very, very powerful.

Sanford’s construction produced an average

Paul TenHaken

of more than 6 0 0 j o b s

Mayor, Sioux Falls

and $ 37. 2 m i l l i o n in wages annually over the past four years. These projects contributed an average of $ 8 8 .1 m i l l i o n to the economy each year.

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SOUTH DAKOTA

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•

As the state's largest employer, Sanford’s economic activity supported more than2 6 , , 2 0 0 j o b s and $ 1 .7 b i l l i o n in wages and compensation for North Dakotans in 2020.

•

Our combined economic activity added nearly $ 2 . 3 b i l l i o n to North Dakota’s GDP and contributed $ 4 . 3 b i l l i o n to the economy.

•

Over the past four years, Sanford’s construction in North Dakota supported an annual average of 4 0 0 j o b s and $ 2 9 .1 m i l l i o n in compensation. This construction contributed an average of $ 6 8 .1 m i l l i o n to the

NORTH DAKOTA

economy each year.

Sanford has proven time and time again that they’re committed to our community — and that shows.

Brian Ritter President, Bismarck-Mandan Chamber of Commerce

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•

Sanford’s economic activity in Minnesota supported more

I cannot think of a single project in

than 1 7, 2 0 0 j o b s

Bemidji where Sanford’s fingerprints aren’t

and generated more

on it — either as a leader or as a financial

than $ 1 .1 b i l l i o n in

•

employment wages

contributor or as a partner in the project.

and benefits.

Sanford has changed our community.

Minnesota’s GDP grew

Dave Hengel

by $ 1 . 5 b i l l i o n due

Executive Director,

to Sanford’s combined

Greater Bemidji

economic impact.

Sanford contributed $ 2 . 6 b i l l i o n to Minnesota’s economy.

•

With construction factored in, an additional annual average of 200 Minnesotans found employment and $ 1 4 . 5 m i l l i o n in wages over the past four years. These projects contributed an average of $ 3 6 .1 m i l l i o n to the economy each year.

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MINNESOTA

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The economic impact of Sanford in Sheldon is beyond measure. In addition to providing quality, comprehensive health care that is delivered locally, Sanford Sheldon is at the core of almost every aspect of our community.

They are active in economic development initiatives, community daycare services, serving on local boards, providing financial assistance to various organizations and working with our community college to develop health care-related programs just to name a few items.

In reality, Sanford IS the heartbeat of Sheldon.

Barry W. Whitsell Chief Executive Officer Village Northwest Unlimited Sheldon, IA

IOWA

•

Sanford’s economic activity in Iowa supported more than 3 , 3 0 0 j o b s with $ 1 3 9 . 8 m i l l i o n in compensation in 2020.

•

Iowa’s GDP grew by more than $ 2 0 2 . 2 m i l l i o n thanks to Sanford’s combined economic impact. Sanford contributed $ 3 6 1 . 9 m i l l i o n to Iowa’s economy in 2020.

•

Construction supported an annual average of 50 jobs and $ 2 . 9 m i l l i o n in wages for Iowans. These construction projects contributed an average of $ 7.7 m i l l i o n to the economy each year.

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When our communities are vibrant, growing and healthy, so are we.

Part of Sanford Health’s mission is to bring health and healing to the people who live and work across our region. As a nonprofit organization, we make sure the benefits of health care reach the broad needs of our communities.

Sanford’s economic strength enables us to provide charitable care and other community benefits. Our Community Benefit program partners with communities to fulfill our robust commitments to: •

Improve access to health care services

•

Strengthen the health of the community

•

Advance medical and health knowledge

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COMMITMENT TO HEALTH FOR ALL 18

I n 2 0 2 0, S a n f o r d i nve s t e d $ 6 1 8 m i l l i o n in Community B e n e f i t p r o g ra m s .

As a nonprofit organization, we make sure the benefits of health care reach the broad needs of our communities. In 2020, we invested more than $ 6 1 8 m i l l i o n in community benefits to provide free or subsidized medical care, essential services and community programs to improve access to care and improve health and well-being.* Nearly 90% of our community benefit investments directly support low-income patients.

We’re proud of the way we’ve served our communities, cared for our patients and invested in the people and places of our region to improve quality of life and drive more opportunity and better health for all.

$618 MILLION

Our care extends beyond our medical centers and clinics. We are active in the communities we serve, investing substantial resources to drive more opportunity and better health for all.

For generations, we’ve served our communities, cared for our patients and invested in the people and places of our region to improve quality of life and well-being. We’re proud of the way we’ve put our patients and communities first, never more than in the last year with the unprecedented global pandemic. The wide-ranging benefits we provide bring health, social and economic vitality to the region. The many ways we care for our community include: •

Financial assistance for those in need

•

Subsidized health care services for low-income patients

•

Education, training and research for the next generation of caregivers

•

Outreach and partnerships to increase access to care and remove social barriers to health

Investment in hundreds of programs supporting health, education and economic development across our region.

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*Source: 2020 IRS 990

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A B O U T T H I S S T U DY

This study was conducted by an external firm utilizing IMPLAN, a nationally recognized economic impact modeling system based on 2019 data to calculate the 2020 impact from Sanford operations in North Dakota, South Dakota, Minnesota and Iowa. The methodology estimates economic relationships among industries, households and government. This analysis includes both the Sanford Health Enterprise and Good Samaritan Society operations in these four states.

Learn more about the IMPLAN methodology at implan.com.

G LO S S A RY

D i r e c t E f f e c t s : are the initial effects to local industries due to the operations being analyzed.

I n d i r e c t E f f e c t s : are the effects stemming from business-to-business supply chain purchases taking place in the region.

I n d u c e d E f f e c t s : are the effects in the region stemming from household spending of labor income, excluding income earned by workers who live out-of-state.

E m p l oy m e n t : An industry-specific mix of full-time, part-time and seasonal employment.

This is an annual average that accounts for seasonality.

L a b o r I n c o m e : This accounts for all forms of employment income, including wages, benefits and proprietor income. It is also referred to as employment compensation in this report.

Va l u e Ad d e d : The difference between Sanford’s total output and the cost of its intermediate inputs. It is equivalent to the contribution to Gross Domestic Product (GDP).

O u t p u t : The value of industry production and sales. In IMPLAN, these are annual production estimates for the year of the dataset.

Ta x : Taxes are reported at the Sub County General (city/township), Sub County Special District (fire, police, school, etc.), county, state and federal levels.

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