Kentucky hospitals are major economic drivers in the state, generating $34 billion in economic activity each year, according to a new report released by the Kentucky Hospital Association during National Hospital Week.

The analysis, developed using economic modeling software, found that the state's 129 hospitals directly employ 95,000 people and invest approximately $8 billion annually in wages and benefits, supporting families across the Commonwealth. Additionally, hospitals invest more than $2 billion each year on capital projects, fueling additional industries and supporting local businesses.

The economic impact extends well beyond direct employment. 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. "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," said Melanie Landrum, interim CEO of the Kentucky Hospital Association, in a statement.

The report's findings rely on the IMPLAN economic modeling system, which measures how spending and employment in one sector affect others across the economy. This "multiplier effect" means that every dollar spent by a hospital helps sustain jobs and businesses beyond the hospital's walls, according to the analysis.

Beyond their economic contributions, Kentucky hospitals play a vital role in the state's health care safety net by providing $416 million annually in uncompensated care, charity care, and financial assistance. This ensures that patients across the Commonwealth have access to essential medical services regardless of their ability to pay.

The report was released in conjunction with National Hospital Week, which runs through May 16 and celebrates the contributions of hospitals, health systems, and health care workers to their communities.