1. Economic and Community Impact of Kansas Hospitals 2018
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2. Proud of Our Record of Service
Kansas community hospitals:
Provide care 24 – 7 – 365
Serve hundreds of thousands annually
Keep communities healthy, strong, and vibrant
Kansas hospitals are proud to provide care to our communities 24 hours a day, seven days a week,
365 days a year.
Every year, we serve thousands of individuals and keep our communities healthy, strong, and vibrant.
This record of service is and always will be our most valuable contribution to the communities we serve

3. There When You Need Us Communities rely on hospitals to:
provide high quality health care
care for the aged
ensure safety when disaster strikes
bring life into the world
educate people about the impact of lifestyles on their health and well being
provide comfort at the end of life

4. We Contribute to the Economy
Hospital’s contribution to the local economy is critical to economic viability of communities:
As a major source of employment
As a purchaser of goods and services
As a provider of health care services
Less often recognized is the hospital’s contribution to the local economy, such as the people it employs and the impact of its spending.
Kansas hospitals are critical to the economic viability of our communities.
Kansas hospitals are a major source of employment and purchaser of goods and services, as well as providing health care services.

5. Economic Impact Report
The Importance of the Health Care Sector to the Kansas Economy:
highlights the significant role Kansas hospitals play within our local communities
demonstrates “ripple” effect
dollars hospitals bring into the state
jobs hospitals help create
prepared by the Office of Local Government, K-State Research and Extension
A January 2018 economic impact report entitled: The Importance of the Health Care Sector to the Kansas Economy highlights the significant role Kansas hospitals play within our local communities.
The report demonstrates a “ripple” effect on dollars hospitals bring into the state and jobs hospitals help create.
The report was prepared by the Office of Local Government, K-State Research and Extension.
Addition data in this PowerPoint is gather annually by the Kansas Hospital Association.

6. Statewide Economic Impact
Kansas hospitals contribute in three areas:
attract and retain business and industry
attract and retain retirees
create jobs in the local economy
The report identified three general areas of health care’s importance to the state’s economy:
health care attracts and retains business and industry; health care attracts and retains retirees; and health care creates jobs in the local economy.

7. Economic Anchor to Communities
Kansas hospitals and health care services:
Fourth largest aggregate
employer in Kansas
Fifth largest producer
of total sales in Kansas
of total income in Kansas
In addition to enhancing the health and well being of the communities they serve, Kansas hospitals also contribute significantly to the state’s economic health.

8. Major Employers in Kansas
Kansas Hospitals:
Employ more than 86,000 people
4.4 percent of all job holders
Support an additional 75,000+ jobs in other business and industry
Total employment impact of approximately 162,000 jobs
Kansas hospitals and health services are one of the largest employers in state.
Employ 86,324 people statewide
4.4 percent of all job holders
total income of more than 6 billion
Support the creation of an additional 75,659 jobs in other business and industry
Total employment impact of approximatly162,000 jobs

9. Total Health Care Employer Impact
Kansas Health Sector Contribution to State Employment,
Methods can be used to estimate the size of the ripple effect based on the structure of the local economy. As an example, the hospital sector employed an average 86,324 people in and had an employment multiplier of 1.88 (rounded). This means that for each job created in the hospital sector, another 0.88 jobs were supported in other businesses and industries in the state’s economy. The direct impact of the 86,324 hospital employees resulted in an indirect impact of 75,659 jobs throughout all businesses and industries in the state. Thus, the hospital sector employment had a total impact on state employment of 161,983 jobs (discrepancies due to rounding).

10. The Ripple Effect Kansas hospitals:
annually generate approximately $6 billion direct total income to employees
$1 of income generated in hospital sector causes $0.56 in other businesses and industries
total impact on statewide income $9.4 billion
The hospital sector had an income multiplier of 1.56 which indicates for every one dollar of income generated in the hospital sector, another $0.56 was generated in other businesses and industries in the state’s economy. thus, the hospital sector had an estimated total impact on income throughout all businesses and industries of $9.4 billion.

11. Total Health Care Income Impact
Kansas Health Sector Contribution to State Income,
Similarly, multiplier analysis can estimate the total impact of the approximately $6.0 billion direct income for hospital employees. The hospital sector had an income multiplier of 1.56 which indicates that for every one dollar of income generated in the hospital sector, another $0.56 was generated in other businesses and industries in the state’s economy. Thus, the hospital sector had an estimated total impact on income throughout all businesses and industries of $9.4 billion (discrepancies due to rounding).

12. Annual Hospital Employee Spending
Kansas hospital employees spend nearly $3.2 billion on retail goods and services like groceries, clothing, mortgage payments, rent, etc.
Dollars earned by Kansas hospital employees and spent on groceries, clothing, mortgage payments, rent, etc., generate more nearly $3.2 billion in economic activity for the state economy.

13. Total Health Care Annual Spending Impact
Kansas Health Sector Contribution: Income, Retail Sales, Sales Tax,
Retail sales that the health sector helps to generate.
To estimate this, this study incorporated a retail sales capture ratio (retail sales to
total personal income). Kansas had retail sales of about $47.4 billion and $141.1 billion total personal income in Thus, the estimated retail sales capture ratio equals 33.6 percent.
This says that people spent 33.6 percent of their income on retail goods and services within the state. By taking all of the household income associated with health sector activities and multiplying by the retail sales capture ratio, we can estimate the impacts of the health sector on state retail sales.
Thus, the total retail sales generated by the retail sector equaled $6.5 billion
(discrepancies due to rounding). This is a conservative estimate insofar as only retail sales associated with labor income is considered and not the impact of any local purchases made by the health services businesses.

14. Improving Health and Saving Money
Hospitals save Kansans millions of dollars:
Disease prevention programs
Early detection equals decreased treatment cost and lost earnings
Through programs aimed at preventing disease before it occurs, Kansas hospitals save individuals and the community millions of dollars in treatment costs and lost earnings.
Through screening programs, Kansas hospitals can detect medical conditions in the population earlier, thus lowering the costs of treatment.

15. Covering the Uninsured and Underinsured
Kansas hospitals are a safety net:
Provide uncompensated care
Approximatley $1 billion annually
Offer financial assistance programs
Treat all, regardless of their ability to pay
Unsponsored Care = Charity Care (Financial Assistance) + Bad Debt (Uncollectible Charges)
2015 = 1,001,198,305
2014 = 1,054,953,751
2013 = 1,131,695,845
Medicaid and Medicare
Reimbursement is less than cost of care
Statewide shortfalls average up to 17%
AHA Annual Survey, collected 2016

16. Health Care for Our Community
Kansas community hospitals provide vital health care services annually:
More than 9,000 staffed beds
More than 290,000 inpatient visits
More than 1.8 million inpatient days
More than 38,000 births
More than 7.4 million outpatient visits
More than 1.2 million emergency department visits
Kansas community hospitals provide vital health care services to our communities.
AHA Annual Survey data, 2015 – collected 2016.

17. In Summary Hospitals are a key ingredient to Kansans’ quality of life.
Kansas hospitals keep our communities healthy and vibrant.
Kansas hospitals are major contributors to both the local and state economies.
Families remain more healthy and secure because hospitals provide needed health care services.
Hospitals are a key ingredient to Kansas’ quality of life and to keeping our communities healthy and vibrant.
Kansas hospitals are a major contributor to both the local and state economies and to keeping families healthy and secure by providing needed health care services.
To continue to attract jobs to 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 the state and local economy. Continued investments in our state’s health care system are needed.