(Feb. 8, 2021) – The Kansas Hospital Association works yearly with the Office of Local Government, K-State Research and Extension, to produce The Importance of the Health Care Sector to the Kansas Economy. New data confirms the health care sector is among the fastest-growing in the economy. The entire health sector in Kansas employs more than 240,000 people and is the third-largest aggregate employer in Kansas.

Kansas hospitals alone employ nearly 100,000 people, or five (5.0) percent of all job holders in the state. These jobs are essential to serve our communities, but also have a ripple effect on the Kansas economy. For every job in a Kansas hospital, nearly another job (.96) was created in other businesses and industries in the state. Kansas hospitals have a total impact of 195,677 jobs.

According to the report, hospitals generated approximately $7.5 billion in total income. For every $1 of income generated by hospitals, another $.64 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 business and industry of nearly $12.3 billion. Funds spent to buy goods and services flow from hospitals to businesses and ripple throughout the economy. The impact on area retail sales generates nearly $4.1 billion in the Kansas economy each year. Additionally, the hospital sector generates more than $270 million in state sales tax. The state uses these critical funds for important programs such as education and transportation.

This report documented the relative importance of hospitals and 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 health care in general, and community hospitals in particular, provide to the state. Kansas community hospitals help to not only stabilize the population base, but also invigorate their communities and contribute significantly to the quality of life.

Kansas community hospitals are major employers and business partners throughout the state. As we continue to look for opportunities to enhance our state's economy and stabilize our population, a strong health care system, anchored by well-supported community hospitals, is essential.

In addition to this statewide report, county economic impact reports are linked on the KHA website. These county reports will be updated with new data later this year.