Kansas Hospitals and Health Care Systems Boost State Economy

Cindy Samuelson
Monday, January 25, 2016

As the fifth largest producer of total income and total sales in the state, the Kansas health sector is a powerful economic force. The contributions of hospitals and health care systems to the state’s economy are often overlooked, including the number of people employed, the impact of hospital and health system purchases, and the impact of employees’ spending and tax payments.


A January 2016 report, The Importance of the Health Care Sector to the Kansas Economy (attached), estimated the “gross” impacts associated with the health care sector on economic activity in Kansas. In the report, researchers at the Office of Local Government, K-State Research and Extension identified three primary ways that health care services influence local economic development: (1) health care attracts and retains business and industry; (2) health care attracts and retains retirees; and (3) health care creates jobs in the local area. 


“Hospitals and health services truly represent an economic anchor in our state,” said Tom Bell, president and CEO of the Kansas Hospital Association. “This report documents the relative importance of the health care sector to the Kansas economy. While the estimates of economic impact are substantial, they are only a partial accounting of the benefits that health care in general, and community hospitals in particular, provide to the state. Kansas community hospitals help stabilize the population base, invigorate their communities and contribute significantly to the quality of life.”


More details are included in the full media release attached. County economic impact reports were completed this fall and links can be found on the home page of the KHA website.


The Kansas Hospital Association is a voluntary, non-profit organization existing to be the leading advocate and resource for members. KHA membership includes 212 member facilities, of which 126 are full-service, community hospitals. Founded in 1910, KHA’s vision is: Optimal Health for Kansas.