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University of Minnesota Extension

Economic contribution of Alomere Health

Key findings for communities

  • Prior to expansion operational effects: The operations of Alomere Health supported an estimated total of $204.4 million in economic activity in Douglas County in 2017. This included $78.9 million in labor income. The hospital also supported 1,250 jobs.
  • After expansion operational effects: Operations of Alomere Health will support an estimated $207.7 million in economic activity in 2018, an increase of $3.3 million from 2017. This amount includes $78.3 million in labor income and 1,270 jobs. 
  • Construction effects: To complete its expansion, Alomere Health spent $13.7 million. This created an estimated $19.1 million of economic activity in Douglas County, including $6.4 million in labor income. The construction supported 125 jobs.
  • Hospital industry: Alomere Health appears to be well positioned in three of the four drivers of health care growth. First, major employers in the region, including government and manufacturing, likely provide private health care insurance to their employees. Second, Douglas County has a higher percentage of its population in the 65 and older age category, making them eligible for Medicare. Third, Douglas County has a relatively higher per capita income.

About this report

Alomere Health is a general medical and surgical hospital in Alexandria, Minnesota with two clinics. The hospital, which has 127 beds, provides full medical services. It employs more than 700 full-time equivalent staff, including physicians, advanced practice professionals, and skilled nurses.

Since 2012, Alomere Health has experienced increased demand for its surgery services, with the number of patients increasing by 38 percent. This increased patient demand has spurred expansion at the hospital, which includes the addition of four new operating rooms and eight pre- and post-op rooms. Along with these surgical additions, the hospital also renovated space to add 22 new exam rooms in the specialty clinic.

Alomere Health funded the expansion project through a variety of sources, including a federal New Markets Tax Credit. As part of the New Markets Tax Credit, Equity Plus, LLC hired University of Minnesota to conduct a study measuring the economic contribution of the hospital. Included in the economic contribution study is a comprehensive analysis of the demographics and economics of Douglas County, Minnesota.

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Brigid Tuck, Extension senior economic impact analyst, and Situ Chitrakar, Extension community economics intern

Reviewed in 2019

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