Health industry has big influence on local, state economies

Stethoscope on money background of dollars

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

“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

Report:

• 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.