Healthcare: A Pillar of Our Kansas Economy
A robust healthcare system is vital not only for the well-being of individuals, but also for the economic prosperity of communities. A new report from the Kansas Hospital Association (KHA) underscores the significant economic contributions of healthcare institutions across the state. This analysis highlights the pivotal role that hospitals like HaysMed play in bolstering local economies.
At the heart of the KHA report is a recent study conducted by the Institute for Policy & Social Research at the University of Kansas. The study found that health-related sectors are among the economy’s fastest growing, with a growth trajectory that’s likely to continue. In fact, the healthcare sector in Kansas contributes more than 325,000 jobs and nearly $23 billion in labor income to our state’s economy. When spent, this substantial economic activity generates over $700 million in sales tax revenue, underscoring healthcare’s integral role in the state’s fiscal health.
HaysMed: An Economic Engine & Employment Multiplier in Western Kansas
As the region’s leading healthcare provider, HaysMed ensures that residents have access to essential medical services, ranging from emergency and primary care to highly specialized technology and treatments.
“HaysMed has always stood together with our western Kansas communities as a cornerstone of both healthcare delivery and economic vitality,” according to Shae Veach, Vice President Regional Operations at HaysMed. “Beyond its critical healthcare mission, HaysMed significantly impacts the local economy through employment, wages, and the procurement of essential goods and services.”
Hospitals like HaysMed are large employers, often among the largest in their communities. The KHA report indicates that hospitals in Kansas directly employ nearly 74,000 individuals, with a direct labor income of almost $7 billion.
The economic influence of hospitals extends beyond direct employment. For every 100 hospital jobs, an additional 73 jobs are supported in non-healthcare sectors due to multiplier effects. Similarly, every $1,000 in hospital wages sustains an additional $450 in income for employees in various industries, including retail, utilities, and services utilized by hospitals and staff.
Community Impact and Quality of Life
The presence of a robust hospital like HaysMed enhances the quality of life in our western Kansas region. Access to comprehensive healthcare services attracts new residents and businesses, fosters a healthier workforce, and is key to attracting and retaining retirees who prioritize high quality, dependable medical care. Moreover, HaysMed’s commitment to community health initiatives contributes to the overall well-being and resilience of the region.
While the economic contributions of hospitals are substantial, our healthcare sector faces challenges, including workforce shortages, evolving regulatory landscapes, and financial pressures from uncompensated care. HaysMed continues to adapt by investing in workforce development, embracing technological advancements, and collaborating with community partners to address social determinants of health. We are strongly committed to doing all this and more. Why? Because we believe in always advancing rural health – locally, regionally and across the state.
