KANSAS HOSPITALS make valuable
contributions to the communities they serve, providing care 24
hours a day, seven days a week, 365 days a year. By keeping communities healthy, strong and vibrant, hospitals
strengthen the infrastructure of local communities. Kansas hospitals
also contribute to the financial health of our state, serving as
economic anchors for our communities.A strong health care system in Kansas can help attract and maintain business and industry growth, attract and retain retirees, and create jobs in the local area. The health care sector is among the fastest growing in the economy. A strong health care sector means a strong local economy and a great place for every generation to live.
Hospitals have a direct economic impact based on the sales, wages and employment generated by business activity. An indirect impact on the economy also is created by hospitals through the ‘ripple’ effect of businesses purchasing goods and services from other local businesses, and through health care workers spending wages and other income for household goods and services.
Kansas hospitals annually generate more than $6 billion in direct total income paid to hospital employees. For every $1 of income generated by Kansas hospitals, another $0.56 is generated in other businesses and industries in the state’s economy. As a result, hospitals have an estimated total impact on income throughout all businesses and industries of $9.4 billion. The health care sector (which includes hospitals) is the fifth largest producer of total income and total sales in the state.
Funds spent to buy goods and services flow from hospitals to businesses and then ripple throughout the economy. The impact of hospitals on area retail sales generates nearly $3.2 billion in the Kansas economy each year. It is estimated that hospitals generate more than $205 million in sales tax for the state, which is largely used to fund state programs.
Hospitals stimulate further growth in our communities. Hospital payroll expenditures serve as an important economic stimulus, creating and supporting jobs throughout the local and state economies.
State and local governments garner approximately $1.6 billion in annual
tax revenues from health care sector activities.
A vigorous and sustainable health care system is essential not only for the health
and welfare of community residents, but also to enhance economic opportunity
in Kansas.KANSAS HOSPITALS and HEALTH SERVICES are one of the largest employers in most areas of the state. They are also one of the largest contributors of income.
Kansas hospitals employ 86,324 people, or 4.4 percent of all job holders in the state. Kansas hospitals support the creation of an additional 75,659 jobs throughout all businesses and industries in the state. Kansas hospitals have a total employment impact of approximately 162,000 jobs. The health care sector (which includes hospitals) is the fourth largest aggregate employer in the state.
The economic benefit of KANSAS HOSPITALS on local and state economies is significant. To continue to attract jobs and maintain families in Kansas, it is critical that the state have high-quality health care providers and services. We urge our legislators, members of Congress, and community leaders to recognize that Kansas hospitals are instrumental to supporting state and local economies. Steps must be taken to continue investing in our state’s health care system.
*adapted from KHA's website
