Kentucky Hospitals Economic Importance to Their Communities
Kentucky’s hospitals are known for providing high-quality patient care, but local hospitals are also vital to their communities’ economic development. They employ thousands of workers, generate tax revenue for state and local governments, support Kentucky businesses through purchases of goods and services, and provide charity care for the Commonwealth’s most vulnerable citizens. Hospitals also invest in their physical plants to enhance patient care, creating a significant number of jobs for the local community. The data below provides a glimpse into why hospitals are essential to a thriving economy.
Kentucky Hospitals . . .
Employ over 88,000 people and spend $6 billion on wages
Spend $2 billion on capital projects, creating additional local jobs
Purchase $6 billion of goods and services locally
Pay $196 million in provider taxes that support $892 million in Medicaid spending
Generate over $526 million in state and local taxes
Subsidize $161 million in losses from treating Medicare patients
Provide $165 million in financial assistance and charity care
Total economic benefit of $15 billion to the local community
These dollars have a “ripple effect” as they move through the larger economy, supporting other businesses and jobs in the community.
The hospitals also care for the community by:
Treating 472,000 inpatients
and 12 million outpatients
Welcoming
48,000
babies into
the world
Providing
emergency care
to 2 million people
The data in this report was prepared by the Kentucky Hospital Association using an IMPLAN model designed by Economic Development Data Research Consultant Barry Kornstein, Senior Research Analyst.
About the data: Hospital data in this report are derived from currently available data from the U.S. Bureau of Labor Statistics (employees, wages), 2023 Medicare Cost Reports (capital expenditures), Disproportionate Share Reports (Medicare and Medicaid shortfalls, charity care), KHA InfoSuite (2023 utilization) and data provided by the hospital. All other data are derived from IMPLAN (informed by Cost Report data).
Inpatient Definition – total of inpatient discharges, total number of swing bed discharge totals, skilled nursing facility discharge totals and/or distinct part rehab discharges (excludes normal newborns)
Outpatient Definition – total outpatient discharges including hospital-owned ambulatory facilities, emergency department and observation discharges. This data does not include physician billing data.
Emergency Room Visits – total number from outpatient and inpatient emergency room discharges.
Births – total number of normal births born inside the hospital.
