Hospitals Strengthen Kansas Communities and Economy
(February 13, 2025) – A strong health care system is vital not only for community well-being but also for economic growth. Health-related sectors are among the fastest-growing in the economy, improving business productivity, attracting and retaining retirees, and creating jobs.
The February 2025 report, The Importance of the Health Care Sector to the Kansas Economy, highlights the health care sector’s significant impact. According to the Institute for Policy & Social Research at the University of Kansas, hospitals alone employ more than 74,000 Kansans and contribute over $7 billion in direct labor income. The sector has a large multiplier effect—every 100 hospital jobs support an additional 73 jobs in non-health care industries. For every $1,000 in hospital wages, another $450 flows into other sectors, including retail, utilities, and restaurants.
“Hospitals and health services are economic anchors in our state,” said Chad Austin, president and CEO of the Kansas Hospital Association (KHA). “This report shows the essential role hospitals play in local economies and quality of life.”
Pawnee Valley Community Hospital: A Local Economic Driver
In Pawnee County, Pawnee Valley Community Hospital (PVCH) in Larned plays a crucial role in both health care and the local economy. As a critical access hospital, PVCH ensures rural residents receive essential services, including emergency care, acute care, family medicine services, rehabilitation, and specialty services. Additionally, PVCH, like other Kansas hospitals, is a major local employer, with expenditures on wages, supplies, and services fueling economic activity. These investments help sustain local businesses and contribute to tax revenue, benefiting education, infrastructure, and community services.
The October 2023 report, The Importance of the Health Care Sector to the Pawnee County Economy, underscores the sector’s economic role. The health care industry in Pawnee County directly employs 936 individuals—23.1% of the county’s total workforce—and generates nearly $54.8 million in labor income, or 25.7% of the county’s total. When factoring in ripple effects, the sector supports 1,135 jobs and $62.1 million in labor income countywide.
Statewide Economic Impact
Beyond job creation, hospitals drive business activity by purchasing goods and services. The health care sector generates over $296 million in sales tax annually, with state and local governments collecting $2 billion in tax revenue from health care-related activities. These funds help support essential public programs across Kansas.
Overall, the health sector directly and indirectly supports more than 325,000 jobs and contributes nearly $23 billion in labor income to the Kansas economy.
The Future of Kansas Health Care
As health care continues to evolve, its economic contributions remain vital. Hospitals like PVCH are not only medical lifelines but also key economic pillars that sustain jobs, businesses, and community growth. “Fostering economic security and improving the health and well-being of those we serve, is necessary for a stable, thriving community,” said Melanie Urban, Administrator of PVCH. “PVCH is committed to making a positive impact in Pawnee County.”
The full statewide report and county-specific data are available on the Kansas Hospital Association website.
The Kansas Hospital Association represents 238 health care facilities, including 121 community hospitals. Since 1910, KHA has been a leading advocate for Kansas hospitals, promoting the vision of “Optimal Health for Kansans and Kansas Hospitals.”
