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Economic impact of the hospital on the community

A hospital has a direct economic impact on the local community based on the wages paid to employees and purchases made from local vendors.  But there is also a larger ripple effect of purchases made locally by employees and by businesses purchasing goods and services from other businesses.  There is a genre of hospital and health services economic impact studies — call us if you’d like us to help you find them!  This one was done for hospitals in Kansas.  In 2011, Kansas hospitals employed about 74,000 individuals and had an “employment multiplier” of 1.78 — meaning that for every hospital job, another 0.78 jobs were supported.  Kansas hospitals were found to have an “income multiplier” of 1.48 — for every dollar of income generated by hospitals, another $0.48 was generated in other businesses.

Source: Leatherman, John.  The Importance of the Health Care Sector to the Kansas Economy.  Manhattan, KS: Kansas State University, Jan. 2012.  Click here for full text: http://krhw.net/assets/docs/Economic%20Impact%20Reports/State%20of%20Kansas%20Health%20Care%20Impact%20Report.pdf  Posted by AHA Resource Center, (312) 422-2050 rc@aha.org

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