The health care industry's far-reaching economic influence within North Dakota is the focus of this report. An input-output model is used to estimate the economic impact of hospitals and long-term care nursing facilities. The analysis shows that nearly 8 percent of the state's total business activity, nearly 10 percent of the state's total retail sales, and nearly 19 percent of the state's total employment in 1991 were attributable to hospitals and long-term care nursing facilities. In addition, these facilities generated nearly $41 million of tax revenues for the state in 1991.