President's Perspective – Hospitals Keep Communities Healthy and Economically Strong
Hospitals not only keep communities healthy, strong and vibrant but also strengthen local community infrastructure. Kansas hospitals contribute to the state's financial health, serving as economic anchors for the communities they serve. The Kansas Hospital Association provides members with resources to highlight the substantial contributions hospitals and the health care sector make to the Kansas economy.
As with all industries, hospitals generate direct jobs and employee income while supporting additional businesses across many industries through supply chain linkages and employee spending on household goods and services. A vigorous health care system is essential not only for the health and welfare of community residents but also for enhancing economic opportunities.
Health-related sectors are among the fastest-growing in the economy. Given demographic trends, this growth is likely to continue. Furthermore, evidence shows quality health care improves business productivity, supports business recruitment and retention, and attracts and retains retirees.
KHA's recent study, The Importance of the Health Care Sector to the Kansas Economy, was conducted by the Institute for Policy & Social Research at the University of Kansas. The study found that the Kansas health care sector supports more than 338,000 jobs and nearly $24 billion in labor income, including direct and multiplier effects. When spent, this labor income generates more than $727 million in sales tax revenue.
The study found that hospitals alone employ nearly 76,000 Kansans and generate direct labor income of almost $7 billion. The hospital sector has large multiplier effects. Every 100 hospital jobs support an additional 74 jobs in non-health care sectors. And every $1,000 in current hospital wages and salaries sustains an additional $475 in income for employees of grocery stores, restaurants, gas and electric utilities, and other industries that serve hospitals and their employees.
As we continue to seek opportunities to strengthen 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 members to use this information when discussing the economic impact of hospitals with your staff, boards and communities. The latest county reports, completed in May 2025, are available online. Additional resources, including a brochure, a template PowerPoint presentation, and a media advisory, are also available online.
--Chad Austin