President's Perspective – Keeping Communities Healthy and Economically Strong
(Feb. 7, 2025) – As our members understand, the health care sector in Kansas contributes substantially to the state's economy. Hospitals keep communities healthy, strong and vibrant and strengthen their infrastructure. Kansas hospitals contribute to the financial health of our state and serve as economic anchors for the communities they serve.
As with all industries, hospitals generate direct jobs and employee income. However, they support additional businesses across many sectors through supply chain linkages and employee spending on household goods and services. A vigorous health care system is essential for the health and welfare of community residents and for enhancing economic opportunities.
Health-related sectors are among the fastest growing in the economy, and given demographic trends, this growth is likely to continue. Furthermore, evidence shows quality health care improves business productivity, aids recruitment and retention and attracts and retains retirees.
The Institute for Policy & Social Research at the University of Kansas conducted the Kansas Hospital Association's new report on The Importance of the Health Care Sector to the Kansas Economy. The study found that the health care sector contributes more than 325,000 jobs and nearly $23 billion in labor income to the Kansas economy, including direct and multiplier effects. This labor income, when spent, generates more than $700 million in sales tax revenue.
The study found that hospitals employ nearly 74,000 Kansans and generate more than $7 billion in direct labor income. The hospital sector has significant multiplier effects. Every 100 hospital jobs support an additional 73 jobs in non-health care sectors. Every $1,000 in current hospital wages and salaries sustains an extra $450 in income for employees of grocery stores, restaurants, gas and electric utilities and other industries used by hospitals and their employees.
As we continue to look for opportunities to enhance our state's economy, a strong health care system, anchored by well-supported community hospitals, is essential. This report will be shared with our elected officials and the public in the coming weeks. We encourage our members to use this information as you discuss the economic impact of hospitals with your staff, boards and communities. County-specific reports are being updated this year. We will share an update at the Spring District meetings. Until then, the latest county reports, completed in October 2023, are available online. Additional resources, including a brochure, template PowerPoint presentation and media advisory are available online.
--Chad Austin