Kansas Hospitals at Financial Breaking Point: Study Warns of Closures Without Funding Reform

Photo courtesy Canva

Kansas hospitals continue to face financial challenges, straining their ability to serve communities. To better understand the situation, the Kansas Hospital Association partnered with national CPA firm PYA to evaluate hospital finances, commercial insurer strength, and regional comparisons.

The 2024 study found over half of Kansas hospitals are operating at a loss, with a median operating margin of -12.7% in FY 2022. Rural hospitals are especially vulnerable—25 are at immediate risk of closing. The study shows commercial insurers often pay less than the cost of care, forcing hospitals to rely on limited reserves.

Compared to neighboring states, Kansas hospitals have lower margins and higher patient debt loads. Kansas ranks 49th for average employer health insurance premiums but second worst for patient out-of-pocket costs.

Without improved reimbursement or alternative funding, many hospitals risk closure. The Kansas Hospital Association continues advocating for policies that support sustainable care and preserve access across the state.

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