(March 17, 2026) - As the United States House of Representatives Energy and Commerce Health Subcommittee prepares for its third hearing on health care affordability on March 18, it is a key opportunity to highlight what is driving costs across the system and the financial pressures hospitals and health systems are already facing. As Congress considers proposals that could further challenge providers’ ability to maintain or improve access to care, KHA encourages members to educate policymakers and the public about the real costs of caring.
Hospitals are essential economic engines in our state. Overall, Kansas hospitals employ nearly 76,000 team members and generate almost $7 billion in income for hospital workers, with effects reaching well beyond direct employment. Every 100 hospital jobs support an additional 74 jobs in other industries, and each $1,000 in hospital wages creates another $475 in local business activity.
At the same time, hospitals continue to face significant financial challenges that threaten their ability to provide 24/7 care and essential services. In 2025, hospital expenses increased by 7.5 percent, more than double the rate of hospital price growth, while drug spending alone rose at four times that rate, highlighting a widening gap between input costs and reimbursement.
These pressures are driven by multiple factors. Hospitals are treating more patients, and those patients are increasingly medically complex. Nationwide, 36 percent of hospital cost growth is linked to treating more patients, 19 percent to higher patient acuity and 45 percent to rising costs per patient, including wages, benefits, drugs, supplies and equipment.
Payer dynamics compound these challenges. As the population ages, more care is funded by Medicare, which reimbursed hospitals at only 83 cents on the dollar in 2024, leading to over $100 billion in underpayments nationwide. This shift increases financial pressure and raises concerns about long-term sustainability and access to care. Hospitals also continue to absorb increasing administrative burdens, especially from commercial insurer requirements that raise costs and complexity, often without enhancing patient care.
It is important to remind our policymakers and other stakeholders that hospitals are at the heart of communities across Kansas, providing care whenever, wherever and however it is needed. Addressing the growing complexity of the health care system will require all stakeholders to work together to advance solutions that improve affordability and access.
For additional data and resources, see the Importance of the Health Care Sector to the Kansas Economy and the 2026 Costs of Caring report.