Archive for Friday, January 29, 2010

Health industry has big influence on local, state economies

January 29, 2010


Hospitals and health care services are the No. 7 producer of income and sales in Kansas.

Kansas health care services:

• employ.....200,563 workers.

• that’s.....11 percent of the work force.

• that’s.....4th largest, followed by services (26%), government (16%), and trade (13%).

They generate:

• $8.5 billion in wages.

• $9.9 billion in total income (labor plus interests, rents, corporate profits, etc.)

• $16.7 billion in sales (6.4% of state total).

• $324 million in state sales tax revenue.

Kansas hospitals alone:

• employ.....68,126 people or 3.6% of Kansas workers

• generate.....$3.8 billion in wages

The Multiplier Effect

• For every dollar of the $3.8 billion in wages generated by hospitals, another 84 cents was generated in other businesses. Thus, the hospital sector had an estimated total impact on income of more than $6.9 billion.

Douglas County health services:

• employ.....4,439 people (6.4 percent of all workers)

• are the No. 4 employer, following services ( No. 1), government and trade.

They generate:

• $191 million in wages.

• $223 million in total income.

• $383 million in total sales.

Lawrence Memorial Hospital:

• employs.....1,163 people.

• generates.....$60 million in total income.

• generates.....$121 million in total sales.

The report found a strong health care system can:

Attract and retain retirees. A study found 60 percent of potential retirees said health services were in the “must have” category when considering a retirement community.

Help attract and maintain business and industry growth. A survey found 17 percent of corporations used health care costs as a tie-breaking factor between comparable sites.

Create jobs. Since 1970, jobs in health care services have increased 250 percent nationally.

Help preserve population in rural communities.

Cindy Samuelson

Cindy Samuelson

“It’s not just about the health care that a hospital provides. It’s about the community. People should care about their hospital if they want to keep their schools and businesses because it all connects and ripples.”

— Cindy Samuelson, vice president of member services and public relations for Kansas Hospital Association


• Research done by Office of Local Government and K-State Research and Extension. Based on data from 2007 and 2008.

• Released this week and funded by Kansas Hospital Association.


SettingTheRecordStraight 8 years, 3 months ago

Government is 16% of our work force. Wow. And that doesn't include all the private industry that bills the government for goods and services.

Our government - local, state and national - is enormous.

Tandava 8 years, 3 months ago

A very large part of the millions of dollars of total "sales" is due to over-inflated billing, which is due to the health insurance mess. A friend of mine was at LMH for two and a half days recently, and her bill came to about $15,000. And that's just the hospital bill. That does not include what the docs and other people have charged her.

Robert Rauktis 8 years, 3 months ago

Without the insurance supplement as we know it now, health costs would drop like a stone. And before besmirching government bureaucrats, look at the salaries of the suits in medical-industrial complex, providing "invaluable" services.

Parasites with an empathetic smile. Like suits in the college athletic business, absolutely superfluous. And they know it. Thus the resistance to any change.

Sharon Aikins 8 years, 3 months ago

And we blame the insurance companies for the high prices. If the health care industry didn't get by with charging such outrageous sums, we wouldn't have to pay nearly as much for insurance to cover those costs. As it is, I can't afford insurance either, let alone health care.

headdoctor 8 years, 3 months ago

redmoonrising (Anonymous) says… And we blame the insurance companies for the high prices. If the health care industry didn't get by with charging such outrageous sums, we wouldn't have to pay nearly as much for insurance to cover those costs. As it is, I can't afford insurance either, let alone health care.

I know that there are offices that are owned and run by self employed who are paying income taxes on their earning and many of those offices are incorporated but I would like to see figures on what income taxes is not being paid on the profits. When you figure in the write offs of unpaid bills from their inflated billing and their alleged losses by being forced to take a lower price from Medicare, Medicaid, and from national insurance contracts, the picture painted may not be as great as it looks on paper. While corporate taxes is much higher than personal taxes the corporations have more ways to reduce that taxable amount when in comes to filing time and the nonprofit companies get off very light.

I agree that the medical field provides a valuable needed service and the wages paid plus the purchases of all sorts of materials helps the economy but the way the system is set up is it really a totally positive situation?

Bryan Moore 8 years, 3 months ago

Healthcare Moocher "Make people go to work and many of the problems will go away"

You know of 10's of millions of jobs that have medical benifits or pay so much you can buy your own coverage? Wow, why haven't the people heard of this? I never realized the 10% that are unemployed just don't want to work so that they can get moocher to pay for their healthcare. The employment and healthcare problems have just been solved by healthcare moocher! Alert the media!

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