By Melissa Patrick
Kentucky Health News
In celebration of National Hospital Week, the Kentucky Hospital Association has released a new report that highlights the economic importance of the state’s hospitals.
The report found that Kentucky hospitals generate $34 billion in economic activity each year, directly employ 95,000 people and invest about $8 billion annually in wages and benefits, according to a news release.
In addition, it found that Kentucky hospitals invest more than $2 billion each year on capital projects, fueling additional industries and supporting local businesses.
“Kentucky hospitals are known for delivering high-quality health care, but they are also among the largest employers and crucial economic engines in the communities they serve,” Melanie Landrum, interim CEO of the association, said in the release. “Their impact extends well beyond patient care, supporting jobs, strengthening local businesses, and contributing to the overall economic health of the commonwealth.”
The report also highlights the broader ripple effect of hospital spending, showing that “through operations and employee spending, Kentucky hospitals support an additional 77,000 jobs and generate $1 billion in state and local taxes, helping fund critical public services,” according to the release.
Further, it shows how hospitals support Kentucky’s health care safety net by providing $416 million in uncompensated care, charity care and financial assistance each year.
“This ensures that patients across the commonwealth have access to essential medical services regardless of their ability to pay,” KHA says in the release.
The hospital association notes that the report’s findings are based on the IMPLAN economic modeling system, which measures how spending and employment in one sector affect others across the economy, adding that this “multiplier effect” means that every dollar spent by a hospital helps sustain jobs, businesses and economic impact beyond the hospital’s walls.