KHA Senior Vice President spotlights healthcare, economic growth connections

Kentucky Hospital Association Senior Vice President of Policy and Government Relations Jim Musser spotlighted healthcare’s impact on economic development at Thursday’s Christian County Chamber of Commerce Learn and Thrive event.

As a result of rising costs and funding cuts to Medicaid and Medicare, some rural hospitals in Kentucky are facing challenges that could lead to their closure or reductions in services. Possible closures would create healthcare deserts, and Musser says economic development would also be impacted.

Musser says Kentucky hospitals create a larger economic impact than the state’s bourbon and horse industries. He says Kentucky hospitals annually generate around $15 billion in economic impact.

In towns that are home to hospitals, Musser says those hospitals are often some of the largest employers in those communities.

Musser also highlighted a research study from Clemson University concerning what a community needs in order to encourage economic development, and he says having a hospital was a key item.

Musser encourages hospital officials to work with elected officials and folks in their chamber of commerce so that they understand the importance of maintaining a local hospital.

Soon, lawmakers will be returning to Frankfort for Kentucky’s 2026 legislative session, and Musser shared some of the association’s policy priorities. They are focused on unfreezing provider taxes, retaining the Certificate of Need process, protecting the 340B drug discount program, liability reform, increasing trauma response system funding, providing more support for high-acuity youth, addressing workplace safety challenges and highlighting the food is medicine initiative.